Welcome to The Yukon Project, your trusted source for insider perspectives on lenders and financial products. In this article, we’re review personal loans from Truist Bank. Truist is a major bank formed from the merger of BB&T and SunTrust. They offer a full range of financial services, including personal loans that can be used for debt consolidation, home improvements, major purchases, or unexpected expenses. Let’s dive into the details.
Truist Personal Loan Details
Loan Amounts
Truist offers personal loans ranging from $3,500 to $100,000. That’s a wider range than many lenders, making Truist a potential option whether you need a small loan to cover a shortfall or a larger loan for a major project. As always, the amount you can qualify for will depend on your credit profile, income, and debt-to-income ratio.
Interest Rates
The lowest APR (Annual Percentage Rate) Truist advertises is 8.74%, with the highest being 17.39%. Remember, APR includes both the interest rate and any fees, and represents the total annual cost of borrowing.
Behavioral finance note: Anchoring is a cognitive bias where we rely too heavily on the first piece of information offered (the “anchor”) when making decisions. The lowest advertised APR can serve as an anchor, but remember, that’s the best-case scenario. Most borrowers will not qualify for the lowest rate.
Loan Terms
Truist offers loan terms from 1 to 5 years. A shorter term means a higher monthly payment, but you’ll pay off the debt faster and pay less interest over the life of the loan. A longer term lowers your monthly payment, but results in paying more total interest. Choose the shortest term that fits your budget.
Fees
Here’s a big plus: Truist does not charge an origination fee on their personal loans. Many lenders charge this upfront fee, which is usually a percentage of the loan amount. Not having this fee saves you money right from the start.
However, be aware of other potential fees, such as late payment fees. Always read the fine print and ask about any fees before signing on the dotted line.
Truist Personal Loan Credit Score Requirements
While Truist doesn’t specify a minimum credit score, the interest rates they advertise suggest they are targeting borrowers with good to excellent credit. In the FICO score model, a good score starts at 670, while excellent starts at 800.
However, credit score is just one piece of the puzzle. Your income, existing debts, and other factors also play a role. The only way to know if you qualify is to apply.
Debt Consolidation
If you’re using a Truist personal loan to consolidate debt, here’s a notable feature: Truist will pay off your other loans directly. This is important for two reasons:
1. It simplifies the process for you. You don’t have to worry about coordinating multiple payments.
2. It shows that Truist understands this loan is replacing other debts, not adding to them. This could potentially improve your chances of approval, as your debt-to-income ratio won’t be increasing.
Fast Funding
Many applicants can receive a decision on their Truist personal loan application the same day they apply. If approved, you could even receive the funds the same day. This fast turnaround can be a lifesaver if you’re facing an urgent expense or opportunity.
How to Apply for a Truist Personal Loan
You can apply for a Truist personal loan online, by phone, or at a branch. You’ll need to provide personal information, income verification, and authorize a credit check.
Truist will likely do a soft pull on your credit first, which doesn’t impact your credit score, to generate a prequalified offer. If you decide to proceed, they’ll do a hard pull, which can temporarily lower your score by a few points. This is standard practice among lenders.
Is a Truist Personal Loan Right for You?
If you have good to excellent credit and need a personal loan, Truist is definitely worth considering. Their wide range of loan amounts, lack of origination fees, and direct payment for debt consolidation are all attractive features.
However, as with any financial product, it’s crucial to shop around and compare offers. Interest rates, fees, and terms can vary widely from lender to lender, even for the same borrower.
One easy way to compare offers is through our marketplace at The Yukon Project. With a single application, you can receive prequalified offers from up to 40 lenders without affecting your credit score. It’s a smart way to ensure you’re getting the best deal available for your unique situation.
Tips for Personal Loan Success
Regardless of the lender you choose, here are some tips for using a personal loan successfully:
1. Borrow only what you need. It can be tempting to borrow the maximum amount offered, but more debt means more interest and a higher monthly payment. Borrow only what you truly need.
2. Have a repayment plan. Before you borrow, make sure the monthly payments fit comfortably in your budget. Better yet, plan to pay more than the minimum whenever possible to get out of debt faster and save on interest.
3. Avoid new debt. A personal loan can help you consolidate existing debt or cover a major expense, but avoid using it as an excuse to take on new debt. Focus on paying off what you owe.
4. Communicate with your lender. If you face a financial hardship and can’t make a payment, contact your lender immediately. Many have hardship programs, but they can’t help if they don’t know you need it.
5. Monitor your credit. Your payment history on your personal loan will be reported to the credit bureaus, so making on-time payments can help build your credit. Monitor your credit report to ensure accurate reporting and catch any potential issues early.
The Bottom Line
Truist offers competitive personal loans with attractive features for debt consolidation and other financial needs. But they’re not the only game in town. As with any major financial decision, it pays to do your research, read the fine print, and choose the loan that best fits your needs and budget. And remember, The Yukon Project is here to help guide you on your financial journey.
