USA Bank Simple Loan: Check Rates and Compare Alternatives
USA bank simple loan is a safer option compared to other small-dollar loans. However, compare all options (check rates and compare alternatives) before borrowing. A Simple Loan is an affordable small loan offered to existing USA customers.
Bank simple loan helps when you urgently need cash, before other high-interest loans, but after exploring interest-free alternatives.
USA Bank Simple Loan Full Review
U.S. Bank is one of the few mainstream banks that provide small-dollar installment loans as an alternative to online or in-store payday loans. The Simple Loan is available in amounts ranging from $100 to $1,000, with three monthly payments.
Before you can borrow, you must have a bank account with US Bank. To qualify you, the bank examines your transactions, banking history, and credit information. A lender who checks your credit or examines your bank account to determine your ability to repay is less likely to offer you a loan you can’t afford. USA bank simple loan!
If you have bad credit (less than 630 FICO score) or a short credit history, USA Bank’s Simple Loan is a quick way to handle emergency expenses. Before you borrow, compare this loan to alternatives to ensure it is the best option for you.
Details of USA Bank Simple Loan
A U.S. Bank Simple Loan is a short-term installment loan available to customers who have had a U.S. Bank checking account for at least six months and three months of direct deposits. You can borrow between $100 and $1,000, with repayment divided into three equal monthly installments.
Rather than charging interest, U.S. Bank charges a fee of $12 for every $100 borrowed if you sign up for automatic payments or $15 for manual payments, for a total APR of 70.65% or 87.63%. There are no additional fees, even if you pay late or miss a payment due to a lack of funds. USA bank simple loan.
This means you can calculate the total cost of your loan upfront, without worrying about any hidden fees.
You can apply for a Simple Loan directly from your online U.S. Bank account. If you are approved, your funds are deposited directly into your checking account and are immediately available.
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Costs OF USA Bank Simple Loan
The Simple Loan has a three-month term and costs $6 for every $100 borrowed. This equates to an annual percentage rate of approximately 36%.
This is significantly less expensive than typical payday loans, which have an average interest rate of nearly 400%. The Simple Loan is also repaid over three months, rather than the two-week cycle typical of payday loans. The U.S. Bank Simple Loan has no origination fees, late fees, or prepayment penalties.
For example, A $500 loan with an APR of 36% repaid over 3 months would carry:
- Monthly payments of $177.
- Total interest of $30, and a
- Total amount due: $530.
To qualify, you must have a six-month-old U.S. Bank checking account with a three-month history of recurring direct deposits.
You can only apply for one Simple Loan at a time. After you have paid off your first loan, you must wait 30 days before applying for another. There is usually no “cooling off” period between payday loans. Breaking up high-interest loans can help borrowers avoid overextending themselves and falling into a debt cycle.
When evaluating a Simple Loan application, US Bank performs a hard credit pull. Even though it only checks one of the three major credit bureaus, you may see a temporary drop in your score.
To be eligible for the Loan, you must:
- Maintain a checking account with a U.S. bank for at least six months.
- Send three months’ worth of recurring direct deposits to your checking account.
- You must have a current Social Security number.
- You must be at least 18 years old.
Benefits of a USA Bank Simple Loan
A US Bank Simple Loan has a few advantages, including the following:
- Fees are reasonable: While still a costly form of credit, these loans are less expensive than other short-term options available.
- Quick turnaround: Your funds are deposited directly into your checking account upon approval, so you can access them right away rather than waiting a business day for your loan to process.
- The fees and terms are clear: U.S. Bank specifies how much each loan costs and how long it takes to repay it. Furthermore, you will not be charged additional fees for late payments or insufficient funds.
- Very easy application process
- No unexpected costs
- Quick access to funds
Here’s how U.S. Bank Simple Loan compares: Check Rates and Compare Alternatives
Consumer advocates believe that the maximum APR for an affordable loan is 36%. Other small-dollar lenders may not meet this requirement, whereas the Simple loan does.
Oportun loans have a rate cap of 36% and a maximum loan amount of $10,000. Borrowers are not required to have a credit score or to be an existing customer. The company takes pride in assisting customers in establishing credit.
OppLoans also provides larger loan amounts than US Bank, but at a higher APR. When you apply for a loan, the lender does not check your credit score, but it does report payments to all three credit bureaus on most loans. USA Bank Simple Loan.
U.S. Bank Simple Loans are not recommended if
Check Rates and Compare Alternatives: USA bank simple loan.
- You only want to improve your credit: A secured credit card (which US Bank also provides), a credit builder loan, or repaying existing debt are all less expensive ways to build credit.
- You can get interest-free cash in other places: Even in an emergency, we recommend trying out cheaper alternatives first.
Alternatives to USA Bank Simple Loan
Here are some alternatives to borrowing that may be less expensive. Check Rates and Compare Alternatives:
- Seek assistance from local nonprofits, charities, and religious organizations to meet basic needs. They can assist you in obtaining food, clothing, and transportation for job interviews. USA Bank Simple Loan.
- For assistance with rent or utilities: contact your utility company, landlord, or mortgage company. If you require long-term assistance, consider finding alternative housing or contacting a housing counselor.
- Paying medical bills: Learn about medical cost coverage options, such as payment plans.
To cover other unexpected expenses:
- Ask a friend or family member for a loan, or form a lending circle to borrow without paying interest from those you trust. USA Bank Simple Loan.
- Request a paycheck advance from your employer, or use a loan app to borrow against your next paycheck.
- Take out a payday loan or a small personal loan from a credit union. You must be a member to use this option, but it is one of the most cost-effective ways to cover an emergency.
- Try different ways to make money. This option requires some additional time.
Summary of USA Bank Simple Loan
|Product Name||USA Bank Simple Loan|
|Loan Term||Up to 3 months|
|Requirements||U.S. Bank checking account for 6+ months, 3+ months of direct deposits to checking account, ages 18+|
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