Personal Loan Comparison: Axos $50,000 vs. Truist $100,000

When it comes to securing a personal loan, the options available can vary significantly depending on the lender. In this article, we’ll delve into a detailed comparison between two notable players in the lending arena: Axos Bank and Truist. Specifically, we'll explore their personal loan offerings—Axos’s $50,000 loan and Truist’s $100,000 loan—to help you determine which may be the better choice for your financial needs.

Overview of Axos and Truist Personal Loans

Axos Bank Personal Loan

Loan Amounts and Terms: Axos Bank offers personal loans ranging from $7,000 to $50,000. This range makes Axos a viable option for individuals seeking substantial funding but not necessarily the highest amounts available. The loan terms with Axos extend from three years to five years, providing a moderate time frame for repayment.

APR and Fees: Axos’s personal loan APRs start at 11.79%, with a maximum APR of 20.84%. Additionally, Axos charges an origination fee between 1% and 2% of the loan amount. This fee is relatively low compared to industry standards but is worth noting when calculating the total cost of the loan.

Prepayment and Late Fees: One of the advantages of borrowing from Axos is the absence of a prepayment penalty. This means you can pay off your loan early without incurring extra costs. However, Axos does impose a $15 fee for late payments and failed payment attempts, which is relatively moderate compared to some lenders.

Additional Considerations: Axos does not permit co-signers or co-applicants, which could be a drawback for individuals who may benefit from having a stronger credit profile added to their application. Moreover, Axos does not offer direct debt consolidation, meaning the loan proceeds cannot be used to pay off other debts directly.

Truist Personal Loan

Loan Amounts and Terms: Truist offers a more extensive loan range, with amounts available from $3,500 up to $100,000. This flexibility makes Truist an appealing option for those seeking larger sums of money. Truist provides loan terms between two and five years, aligning with industry norms for personal loans.

APR and Fees: Truist’s APRs start at 9.62% and can go up to 17.4%. Truist’s APRs are generally lower than those offered by Axos, which could translate to lower overall borrowing costs. Notably, Truist does not charge an origination fee, which is an advantage over Axos’s fee structure.

Prepayment and Late Fees: Similar to Axos, Truist does not impose a prepayment penalty, allowing borrowers to pay off their loan ahead of schedule without incurring additional fees. However, Truist’s fee structure regarding late payments and failed payment attempts is less transparent, which might be a concern for potential borrowers.

Additional Considerations: Truist also does not allow co-signers or co-applicants, mirroring Axos’s policy. Additionally, the specifics regarding whether Truist facilitates direct debt consolidation are not clearly stated, which may impact those looking to use the loan for debt consolidation purposes.

Key Comparison Points

Loan Amounts and Flexibility

Axos Bank:

• Minimum Loan Amount: $7,000
• Maximum Loan Amount: $50,000
• Terms: 3 to 5 years

Truist:

• Minimum Loan Amount: $3,500
• Maximum Loan Amount: $100,000
• Terms: 2 to 5 years

Truist offers a greater maximum loan amount and a lower minimum loan amount compared to Axos, providing more flexibility for those seeking larger or smaller loans. However, Axos provides a slightly longer minimum term, which could be beneficial for managing monthly payments over a longer period.

APR and Fees

Axos Bank:

• Minimum APR: 11.79%
• Maximum APR: 20.84%
• Origination Fee: 1% to 2%

Truist:

• Minimum APR: 9.62%
• Maximum APR: 17.4%
• Origination Fee: None

Truist stands out with lower APRs and the absence of an origination fee, making it potentially cheaper for borrowers compared to Axos. The lower APR range and lack of origination fees could significantly reduce the overall cost of borrowing from Truist.

Prepayment and Late Fees

Axos Bank:

• No prepayment penalty
• Late Payment Fee: $15
• Failed Payment Fee: $15

Truist:

• No prepayment penalty
• Late Payment Fees: Unclear

Both lenders offer the benefit of no prepayment penalties, allowing borrowers to pay off their loans early without additional charges. However, Axos’s fee structure for late payments and failed payment attempts is more transparent compared to Truist’s less clear policies.

Co-Signers and Direct Debt Consolidation

Axos Bank:

• No co-signers or co-applicants allowed
• Does not offer direct debt consolidation

Truist:

• No co-signers or co-applicants allowed
• Direct debt consolidation policies unclear

Neither lender offers the option to add a co-signer or co-applicant, which may limit borrowing opportunities for those who could benefit from an additional credit profile. Additionally, both lenders have ambiguous policies regarding direct debt consolidation, which could impact individuals seeking loans specifically for consolidating existing debts.

Making the Decision

When choosing between Axos and Truist for a personal loan, several factors should be considered based on your individual needs:

1. Loan Amount Needed: If you require a loan amount up to $100,000, Truist is the clear choice. For amounts up to $50,000, Axos is a viable option.

2. APR and Cost of Borrowing: Truist offers lower APRs and no origination fee, which could make it a more cost-effective option. If you prioritize the lowest possible borrowing costs, Truist may be more favorable.

3. Fees and Transparency: Axos provides clear information about its fees, including late payment and failed payment charges. Truist’s lack of transparency regarding late fees might be a concern.

4. Loan Terms: Both lenders offer competitive terms, but Truist’s shorter minimum term might be advantageous if you prefer a quicker repayment period.

5. Additional Features: Consider whether you need features like direct debt consolidation or the option for co-signers. Neither lender offers these features, so you may need to explore other options if they are crucial to your borrowing needs.

Conclusion

In summary, both Axos and Truist offer competitive personal loan products, each with its strengths and potential drawbacks. Truist excels with its higher maximum loan amount, lower APRs, and lack of an origination fee, making it a strong contender for those seeking larger sums of money at a potentially lower cost. Axos, while offering slightly higher APRs and an origination fee, provides a reliable option for those needing loans up to $50,000, with the benefit of a transparent fee structure and flexible prepayment options.

Ultimately, the best choice will depend on your specific financial situation, borrowing needs, and preferences regarding loan terms and costs. It is advisable to compare these factors carefully and consider applying for pre-approval with both lenders to determine which offers the most favorable terms for your circumstances. Additionally, exploring other lenders and loan options could help ensure you secure the best possible deal for your personal loan requirements.

For personalized assistance and to explore a range of loan options, you may visit financial marketplaces and comparison platforms that can provide insights into various lenders and loan products, helping you make an informed decision.