If you currently have a checking account with Axos Bank and have excellent credit, you might consider its personal loans, which come with extra benefits if you take out a personal loan. For others, Axos Bank personal loans are typically quite costly, and the bank’s overall client rating isn’t the best.
Axos Bank, established in July 2000, is a digital bank that initially offered a standard checking account. Since then, the San Diego-based bank has increased the range of products it offers to consumers across the country, including personal loans. In addition, prospective borrowers can get individualized loan options and rates by prequalifying online without affecting their credit.
Types of Axos Bank Personal Loans
Almost any personal expense can be covered by an Axos Bank personal loan, such as:
- Holidays.
- Home fixing.
- Debt consolidation.
- House upgrades
- Emergency costs.
- Medical or veterinary bills.
However, funds from Axos Bank personal loans cannot be used for stock purchases, business expenses, cryptocurrency, or any other kind of investment. Additionally, you are not eligible to use these funds to cover any post-secondary education costs or for a bridge loan for real estate.
Axos Bank Requirements
Axos Bank’s strict credit requirements, requiring applicants to have a credit score of 730 or higher. It poses a significant hurdle for many applicants. Additionally, Axos Bank requires a well-established credit history of at least four years and sufficient income to meet its requirements. However, Axos Bank’s underwriting requirements are strict, preventing co-signer or joint applicant applications for secured loans if the applicant does not meet the requirements.
Advantages and Disadvantages of Axos Bank Personal Loans
Axos Bank’s features may make it unsuitable for certain customers, but they may make it a good option for those with excellent credit seeking larger loan amounts. The benefits and drawbacks of Axos Bank are compared here:
Advantages
- Money in two days.
- Minimal maximum APR.
- Possibility of loan prequalification.
Disadvantages
- No choice for co-borrowers or cosigners.
- High minimum loan amount.
- Imposes an origination fee.
Axos Bank offers a convenient two-day funding timeline for quick expenses and prequalification without affecting credit scores. They offer a maximum annual percentage rate of 30.49%, compared to 36% for personal loan lenders. However, they don’t allow co-borrowers or cosigners to lower interest rates. Axos Bank personal loans have one-time origination fees ranging from 1.00% to 2.00%, which are deducted from the loan amount, despite being lower than some other lenders.
Who Can Apply for Axos Bank Personal Loans
Axos Bank requires applicants to fulfill specific requirements before offering a straightforward online application process for personal loans. These consist of a minimum credit score of 700, proof of income, and a minimum of four years’ worth of credit history. Applicants must complete a three-minute online form with their contact information, the amount, and the purpose to be prequalified.
Applicants must provide a valid ID and Social Security number for a smoother application process, and within minutes of acceptance, they will receive loan offers. If they decide to move forward, they will need to present documentation of their assets and income, including pay stubs, W-2s, tax returns, bank statements, and benefit statements.
Loan decisions are made within 48 hours, and applicants must connect a bank account to Axos to deposit funds and collect automatic payments. Axos Bank personal loans are paid back at a fixed interest rate, allowing early repayment or extra payments without prepayment penalties.
How to Get Axos Bank Personal Loans
Almost any type of expense can be covered by Axos personal loans. Axos Bank personal loans are unsecured financing options that do not require collateral like a house or vehicle. The following are the procedures for getting personal loans with Axos Bank:
Verify your credit rating
You can determine if you’ll be approved for a loan by checking your credit score. It can also help you determine what interest rates you might be eligible for. To qualify for an Axos Bank loan, you’ll need a credit score of at least 730.
Determine the amount you will need to borrow
Axos Bank offers loans ranging from $7,000 to $50,000. Budgeting for how much you can afford is a good idea, though, before you apply for a loan. A personal loan calculator can be used to determine how much you might have to pay each month.
Get loan prequalification
To apply for a loan with Axos Bank, you must provide details about your repayment period, borrowing amount, and intended use of funds. Verifying your prequalification status with multiple lenders is beneficial, as it doesn’t impact your credit score and allows you to compare rates to find the best deal.
Review your details
If you choose to work with Axos Bank, you will have to confirm the details you submitted on your application. Your Social Security number, a copy of your state ID or driver’s license, and evidence of your income are required. If you decide to proceed with the loan, Axos Bank will run a hard credit check, which could result in a few points being removed from your credit score.
Complete your loan
At the very end, you will have to sign a contract promising to repay the loan in order to formally accept it. Before signing, make sure you have read and comprehended the terms of the agreement. Axos Bank will release your funds two days after you sign. Furthermore, you might need to increase your chances of obtaining a personal loan if Axos Bank rejects you. Therefore, you can improve your credit score, lower your debt-to-income ratio, and look for mistakes in your credit reports to achieve this.
