Axos Bank Personal Loan Review

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Axos Bank offers personal loans that can be deposited into your account the same day your application is approved, with a maximum APR lower than many of its competitors. But you’ll need to have minimum credit scores of 700.

If you want to keep all of your banking in-house with Axos, it’s not a bad personal loan option to choose. Loan amounts range from $5,000 to $50,000 with an annual percentage rate (APR) starting around 7%. However, Axos may not be right for you if you’re looking to borrow a small loan amount.

What you need to know about an Axos Bank personal loan

Axos Bank is a full-service online financial institution founded in 2000 and based in San Diego. In addition to personal loans, the bank offers a wide range of personal and business financial services, including checking accounts, mortgages, investment accounts, car loans, small business banking and commercial lending.

Axos Bank gives customers access to ATMs across the country, many with no surcharge. Personal loans are only offered online, though you can reach the company by phone or email with questions.

Online prequalification

Axos Bank makes it relatively easy to prequalify for a loan and see what rates and terms you may be offered on a personal loan. The company says the process takes about three minutes. You’ll see potential loan offers quickly based on the information you provide about your income, employment and credit — though you’ll need to back this up with documents once you decide to move forward with completing a loan application.

Same-day funding possible

Personal loans from Axos may be deposited into your bank account the same day you accept the loan terms. The company says it may take up to two business days to receive your money though, and you should take into account your bank’s policies as well.

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Origination fee required on all loans

Axos charges an origination fee of between 1% and 2% of your loan amount, based on your credit. This amount is deducted from your loan funds. You may also face insufficient funds fees if you don’t have enough money in your bank account to cover a payment, and late fees if payments aren’t on time.

A closer look at an Axos Bank personal loan

■  High minimum credit score requirement — To qualify for an Axos Bank personal loan, you’ll need credit scores of at least 700. That’s higher than some other lenders require.

■  Relatively high minimum APR — Personal loans from Axos Bank have an APR ranging from 7.15% to 17.99%. While this maximum APR is lower than some lenders, you can find a lower minimum APR elsewhere.

■  Midrange loan amounts — Axos Bank loans can range from $5,000 to $50,000. That’s a higher minimum than you’ll find at some lenders, as well as a lower maximum.

■  Flexible loan terms — You may be able to choose a loan term between three years and six years.

■  Loan refinancing available — Once you’ve had your Axos Bank personal loan for six months, you may be able to refinance it at a lower interest rate or longer term — just keep in mind that refinancing means another credit check and a new origination fee.

■  No co-signers — Axos Bank does not allow co-signed personal loans.

Available nationwide — Axos Bank issues personal loans in all 50 states.

Who is an Axos Bank loan good for?

Axos Bank may be a good option for somebody with credit scores around 700, the bank’s minimum for personal loan borrowers. Because Axos has a maximum APR lower than many competitors, you’re more likely to receive a better rate here than elsewhere if you have good credit. If you’ve got excellent credit though, you may want to research other lenders with a lower minimum APR.

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How to Qualify for an Axos Personal Loan

Personal loan applications are approved or declined based on a number of factors. All lenders have their own unique underwriting requirements, but these typically include information from an applicant’s credit profile and other factors that demonstrate the ability to repay the loan, such as income. Meeting the requirements below won’t guarantee approval, but they can help you decide if an Axos personal loan is the right fit.

Credit Score Requirements

Axos requires a minimum credit score of 700 to be eligible. That’s considered “good” credit, and it means that anyone with fair or bad credit isn’t eligible for a personal loan from Axos. Many lenders are more flexible than this, so there are plenty of other personal loans if you don’t qualify with Axos.

Income Requirements

You will need to be earning enough income to repay your loan, which Axos will verify. However, the company doesn’t specify exactly how much you’ll need to earn to be eligible for a loan. If you’re earning at least some income and you’re interested in a loan, you’ll need to apply to see if you meet the income requirements for your desired loan.

Co-signers and Co-applicants

Axos Bank doesn’t allow co-signers. You’ll need to qualify for a loan based entirely on your own information.

How to Apply for an Axos Personal Loan

Since Axos is an online bank, the only way to apply is online. If you run into snags or have questions, you can contact Axos by phone, email or online messaging, but you’ll still need to complete the application online. Follow these steps to apply:

■  Check your rate. Axos has an online form that you can fill out to check your rate. It only takes a few minutes and requires minimal information like your name, Social Security number, requested loan amount and how you’ll use the funds. At this point, Axos runs a soft credit check, so there won’t be any impact on your credit score.

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■  Compare with other offers. It’s always best to shop around for a personal loan because not every lender will offer you the same rate or loan features. Get a few other rate quotes and then compare Axos to these offers.

■  Finish your application. If you decide to go ahead with Axos, you’ll need to complete your loan application and submit it. They’ll request more documents, including identification and past bank statements. If you work for an employer you’ll need to provide your most recent W-2 and pay stub. If you’re self-employed, you’ll need to show your latest tax return. At this point, Axos will do a hard credit check, which temporarily impacts your credit score.

■  Get a loan decision. A customer service representative with Axos will reach out to you if they need any more details and confirm the information you provided. If you’re approved for a loan, you’ll be notified and you’ll receive your money as a direct deposit into your bank account within one to three business days.

Your payment due date will be the day of the month you accept your loan. For example, if you accept the loan on the 15th, your due date will be the 15th of every month until the loan is repaid. You can move your due date by up to 10 days if you like. Axos also signs you up for auto pay right away. If you prefer to make payments manually each month, you’ll need to contact the bank.