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Advantages and disadvantages of car loans from American banks
How US Bank Auto Loans Work
US Bank offers new and used car loans and will help you refinance your current car loan. US Bank does not offer the option to buy out your current lease. You can borrow between $5,000 and $100,000, regardless of the type of loan.
APRs on all US bank auto loans range from 2.59% to 5.49%.
Terms of office range from one to six years. Understand that the longer your term, the more interest you will pay. A long-term loan could also cause you to lose your loan, which means you owe more money on your car than it’s worth.
The lender will allow you to get your financing pre-approved without your car being chosen. Once you have chosen a car, you can finalize the terms of your loan. US Bank does not specify a minimum credit score for obtaining a loan or a time frame for receiving your money.
US Bank lists the following requirements to get the best rate on your car loan:
- A term of office of three years or less
- A loan amount of $30,000 or more
- A credit score of 800 or higher
- A vehicle less than a year old
- A financing amount of 80% or less of the car’s value
You’ll also need to set up automatic payments from a US bank savings or checking account to get the lowest rate, but you don’t need to do this to get approved for one. ready. A relationship with a US bank will result in a 0.5% discount on your rate.
However, if you close your account within one year, you will pay a prepayment penalty of 1% of the original loan amount, with a minimum of $50 and a maximum of $100. Depending on where you live, you may also pay title registration fees.
Customer service is available by phone Monday through Friday from 7 a.m. to 10 p.m. CT and Saturday from 9 a.m. to 5 p.m. CT.
Is US Bank Trustworthy?
US Bank, a Better Business Bureau accredited company, has a A+ rating of the BBB. The BBB is a non-profit organization focused on consumer protection and trust. The BBB rates companies on their response to customer complaints, honesty in advertising, and transparency in business practices.
However, US Bank has been at the center of a few recent scandals. In 2020, US Bank was one of three mortgage servicers that reached an agreement with the Department of Justice to pay a total of $74 million. The DOJ said managers failed to follow certain regulations and made mistakes that impacted borrowers who filed for bankruptcy.
In the same year, US Bank paid $200 million in a settlement with the government over allegations that the bank approved home loans for insurance when borrowers failed to meet standard underwriting requirements.
If the recent US Bank scandals are making you feel uneasy, you might want to consider a different lender for your auto loan needs.
US Bank Auto Loan Comparison
US Bank and PNC have the same loan amount range, while Bank of America has a higher minimum and maximum. If you are looking for a large loan, Bank of America might be the best choice.
All three lenders serve all US states and Washington, DC, although you may also pay title registration fees with US Bank depending on where you live.
US Bank has the highest starting rates for new cars, but lower starting rates for used cars and refinancing than PNC or Bank of America. You’ll likely need strong credit to qualify for loans from any of these three lenders, and the lower your credit score, the more likely you’ll pay higher rates.
Frequently Asked Questions
Is US Bank a good bank for car loans?
Yes, US Bank is one of many good options for auto loans, although the best fit for you will depend on your individual needs and financial situation. US Bank offers competitive rates for borrowers with excellent credit, although borrowers with poorer credit may not qualify at all.
How long does it take for US Bank to approve a car loan?
The bank says most applicants get an approval decision within two hours during normal business hours.
What credit rating is needed to get a car loan from US Bank?
US Bank does not list a minimum credit score requirement for its auto loans. That said, you’re more likely to qualify with a solid credit score.