TD Bank Personal Loan October 2024 Review

TD Bank offers an unsecured personal loan called the TD Fit Loan for borrowers looking to pay off personal expenses, fund important life events, or consolidate high-cost debt.  

TD Bank Personal Loan Top Features

Easy prequalification: It may take only 60 seconds to check your loan options. The bank makes a soft inquiry on your credit report, meaning it won’t affect your credit score. 

Fast financing process: Some customers may receive approval in 24 hours and funds the next business day.  

Low fees: TD Bank doesn’t charge application or origination fees, annual (or monthly) fees, or a prepayment penalty. 

Loans can be big or small: TD loans range from $2,000 to $50,000.

Unsecured: You don’t have to give any assets as collateral, even if you use the loan to buy a car.

Competitive rates: TD bank offers fixed interest rates between 6.99% and 21.99%. Your rate will depend on several factors, including your credit score. 

Personal purposes: You can use this loan to fund personal expenses, including vacations, home renovations, and weddings, or to consolidate credit card debt. 

Reports transactions to credit bureaus: TD bank reports information about your loan and payments to credit bureaus. Paying on time will help you build good credit. 

Available for East-Coast residents: Reisdents in the states TD serves may apply. TD Bank loans are available to residents of:

• Connecticut
• Florida
• Delaware
• Maine
• Maryland
• Massachusetts
• New Hampshire
• New Jersey
• New York
• North Carolina
• Pennsylvania
• Rhode Island
• South Carolina
• Vermont
• Virginia
• Washington, DC

Qualifying for a TD Bank loan

The bank doesn’t disclose a minimum credit score or other requirements to qualify. But you can complete a quick prequalification process online to see if you qualify and your loan choices.

Here are some steps to improve your chances of qualifying for a TD personal loan: 

• Aim to improve your credit score if it’s low. A credit score of around 670-739 is usually considered good. You’ll likely need to plan ahead of time to boost your credit. 
• Calculate your Debt to Income (DTI) ratio. Lenders may look for a DTI of 50% or lower for non-mortgage loans. It’s also a good way to gauge whether you can comfortably pay your installments. 
• Make sure you meet the eligibility criteria like residency and loan purpose and can prove them. 

How to apply for a TD Bank loan

1. Complete the prequalification process

Enter basic information about yourself and your income and expenses. You might get an answer almost immediately. 

The bank only makes a soft inquiry on your credit report. So it won’t hurt your credit score. 

2. Review the rates and terms for different loan options 

The TD Fit personal loan offers terms between 36 and 60 months. Interest rates can vary depending on your credit. 

Consider comparing their offer with other lenders who make soft inquiries on your credit report for prequalification. 

3. Select a loan

Select a loan that suits your needs, with a monthly payment you can afford. 

4. Apply for the loan

Prepare to submit documents proving your identity, residence, and income. You might need more documents, depending on your circumstances. To avoid processing delays, ask the bank if you’re unclear about any requirements. 

Once you apply for the loan, TD Bank will make a hard inquiry into your credit. This may slightly lower your credit score in the short term and show up on your credit report for two years.

5. Sign to finalize the loan agreement 

If the bank approves your loan, they’ll send you the loan agreement and explain the terms. Make sure you understand all the terms before signing. 

Once you sign the agreement, the bank can release your funds. 

Loan approval and loan funding from TD Bank

The bank might approve your personal loan within 24 hours if you meet the requirements and submit complete documents. You’ll get the approval decision via email. Sometimes, they might ask for more supporting documents, which can delay your approval. 

Funds can take one to three business days to reach your account. 

TD Bank: Customer service and customer satisfaction

You can manage your loan account online.

The bank is easy to reach via phone or social media. Call 1-877-300-4020 to speak with a TD personal loan team member. They’re available during business hours on Monday to Friday and for limited hours on weekends. 

Customer experiences always vary, but national surveys show that TD has a good reputation for customer satisfaction.

When a TD Bank personal loan might be the best choice:

Debt consolidation: The TD personal loan might be ideal if you want to consolidate and pay off credit card debt without hurting your credit. You might get a cheaper interest rate from TD Bank than your credit cards. This method could even improve your credit score because paying off your credit cards can help you build better credit.  

Emergency loan: The TD loan might also be a great fit if you’re facing a sudden expense like a medical emergency. Since the loan values start at $2,000 with a fast process, you could use it to cover a wide variety of financial needs. The bank offers repayment terms starting from 36 months.