What's a personal loan?

A personal loan is one way to consolidate debt or to pay for major expenses. It offers fixed interest rates and fixed monthly payments for the life of the loan. A personal loan is best for one-time funding, or if you know the entire cost of your project up front. You receive the loan in one lump sum.

What's a personal line of credit?

A personal line of credit is a set amount of funds that you can withdraw as needed. If you need ongoing access to funds, or if you don't know the full cost of a project, a personal line of credit may be better. With a personal line, you can use the credit as needed, and only pay interest on the funds you borrow.

Have questions about personal loans or lines?

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What are the benefits of a personal line of credit vs a personal loan?

Both are unsecured loans, meaning they don’t require collateral, but here are the key benefits of each:

A personal loan is one-time funding with fixed interest rates and fixed monthly payments. A fixed rate is an interest rate that stays the same throughout the loan. Personal loans often have lower interest rates if you have good credit. Also, you don’t have to be a U.S. Bank customer to apply for a personal loan.

A personal line of credit gives you instant access to your available credit, as you need it. It doesn’t require a specific purchase purpose and carries a variable interest that only accrues on the money you borrow. A variable interest is an interest rate that might change, according to the terms of your contract.

More questions about loans and credit? We have answers.

How do personal loans work?

Understanding how loans and credit work is critical to good financial health. Brush up on what you know about borrowing money.

Learn about loans and lines of credit

Amortization: what it is and why it matters

Ever wondered how much you spend on interest? Thanks to an accounting concept known as amortization, finding out may be easier than you realize.

Learn more about amortization

Consolidate debt: what you need to know

When you consolidate debts, you can bring down the interest rates you’re paying on each individual loan and help pay off your debts faster.

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Disclosures

  1. Not all loan programs are available in all states.

  2. Home Improvement Personal Loan Collateral: A home improvement personal loan is for customers who prefer financing without using collateral. There are other less costly home improvement product options with property as collateral. You may be able to borrow up to $50,000 ($25,000 if you are not a U.S. Bank customer) with fixed interest rates, flexible loan terms and no annual fees.

  3. Personal line of credit: The annual percentage rate (APR) is variable and is based upon an index plus a margin. The APR will vary with Prime Rate (the index) as published in the Wall Street Journal. As of May 5, 2023, the variable unsecured personal line of credit APR ranged from 12.25% to 22.25% APR and the margin varied based on credit score. The lowest APR in the range requires a credit score of 800 or greater. Cash Advance ATM fee: 4% of each advance amount, $10 minimum. Cash Equivalent fee: 4% of each cash equivalent amount, $10 minimum. The annual fee is $0. Foreign Transaction fee: 3% of each foreign purchase transaction or foreign ATM advance transaction in a Foreign Currency. Subject to credit approval, eligibility and credit qualifications. Personal Line of Credit may be reduced or additional extensions of credit limited if certain circumstances occur. Approval for personal line of credit requires having a new or existing U.S. Bank personal checking account. Your Deposit Account Agreement and the Consumer Pricing Information disclosure list terms, conditions, and fees that apply to U.S. Bank personal checking accounts. You may obtain a copy of the disclosure by visiting a branch or calling 800-872-2657.

  4. Home Improvement Personal Line of Credit Collateral: A U.S. Bank Home Improvement Personal Line of Credit is for existing U.S. Bank customers who prefer financing without using collateral. There are other less costly home improvement product options with property as collateral. You may be able to borrow up to $25,000 with fixed interest rates, flexible loan terms and no annual fees.

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Loans and lines of credit are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.

Subject to credit approval, eligibility and credit qualifications. U.S. Bank Personal Loan, Personal Line of Credit, and U.S. Bank Simple Loan are for existing U.S. Bank customers who prefer financing without using collateral. Approval for Personal Line of Credit and Reserve Line of Credit requires having a new or existing U.S. Bank personal checking account.

Simple Loan applicants must have an open U.S. Bank personal checking account with recurring direct deposits. Other eligibility criteria may apply. Loan approval is subject to eligibility and credit approval.

Refer to Your Deposit Account Agreement and the Consumer Pricing Information disclosure for a summary of fees, terms and conditions that apply. These documents can be obtained by contacting a U.S. Bank branch or calling 800-USBANKS (872-2657).