Axos Bank Personal Loan Review
NMLS#1136
Founded in 2000, Axos Bank is a digital financial institute headquartered in San Diego. The bank offers large personal loans — ranging from $7,000 to $50,000 — and caters to borrowers with strong credit.
- Competitive(ish) APRs: With a starting rate of 11.79%%, you might be able to find a cheaper loan somewhere else if you have an 800+ credit score. On the flip side, Axos caps its rates at 20.84%, which is a lot lower than the maximum rate of 35.99% that many online lenders offer.
- Unique cashback perk: You can get up to 10% annualized cashback on your personal loan payment with an eligible Total Loan Rewards Checking account. Axos limits this cashback amount to $100 a month, a respectable chunk of change.
- No bad credit loans: If you don’t have a credit score of at least 730, you won’t qualify for an Axos Bank personal loan.
- No small loans: If you’re looking for a small personal loan, you’ll have to apply elsewhere. Personal loans at Axos Bank start at $7,000.
- Charges an origination fee: Axos will keep 1.00% - 2.00% of your loan funds as an origination fee.
- Best if you have very good credit and want to switch banks: Axos isn’t just an online lender, it’s a full-on digital bank. If you maintain an eligible Total Loan Rewards Checking account with Axos Bank, you can get up to $100 cashback per month on your personal loan payment.
Axos Bank pros and cons
Axos Bank personal loans can come with some great features but like any other lender, Axos has its downfalls, too.
| Pros | Cons |
|---|---|
Can earn cashback on your monthly personal loan payments with an eligible Axos checking account Rates capped at 20.84%, lower than a lot of online lenders Able to change your due date | Must maintain a certain amount in checking account to qualify for cashback Can’t add a second person to your application and get a joint loan Charges an origination fee on every loan Not the cheapest rates if you have excellent credit |
Although it has a high minimum credit score requirement (730+), Axos Bank isn’t the most competitive for excellent credit. For instance, LightStream only accepts good to excellent credit and its annual percentage rates (APRs) start at 6.94% (with autopay).
Axos also charges an origination fee on every loan. Many online lenders only charge these if you have bad credit.
Even so, this lender is worth exploring if you need a loan and a new bank. By opening a Total Loan Rewards Checking account, you could get up to 10% annualized cashback on your personal loan payments.
This is how it works:
Axos Bank determines cashback eligibility on a monthly basis. If you have at least double your monthly personal loan payment in your checking account on the last day of the month, you’ll get 0.83% cashback on your monthly payment (0.83% multiplied by 12 months is roughly 10%) the following month. Cashback is limited to $100 per month.
Axos Bank requirements
Axos Bank doesn’t provide some details around its personal loan requirements such as income or debt-to-income ratio (DTI), but here’s what we do know:
| Minimum credit score | 730 |
| Length of credit history | At least four years |
| Required documents |
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If you meet the basic requirements listed above, you may need to disclose how you plan to use your personal loan. While Axos Bank does allow borrowers to use its funding for a variety of purposes, there are certain expenses you cannot put the money toward.
| Axos Bank loans CAN be used for… | Axos Bank loans CANNOT be used for... |
|---|---|
Debt consolidation Home improvement Major purchases Medical bills Special occassions and events Legal bills | Investments, stocks and securities Cryptocurrency College expenses Short-term real estate bridge financing |
If Axos Bank’s loan options won’t work for your borrowing needs, be sure to shop around for a lender that helps you meet your financial goals and can offer you the best-fitting rates, terms and amounts.
Best personal loan options for:
How to get a loan with Axos Bank
1. Check your credit score
Checking your credit score can give you an idea of whether you’ll qualify with a lender. It can also give you insight as to what interest rates you may qualify for. To qualify for an Axos Bank loan, you’ll need a credit score of at least 730.
2. Estimate how much you need to borrow
You can borrow anywhere from $7,000 to $50,000 from Axos Bank. However, before you apply for a loan, it’s a good idea to budget for how much you can afford. You can use a personal loan calculator to estimate your potential monthly payments.
3. Prequalify for a loan
During this part of the process, you’ll need to tell Axos Bank how much you need to borrow, your preferred repayment term and how you plan to use the money. Prequalification won’t impact your credit score and it’s a good idea to check if you prequalify with multiple lenders. This way, you can compare rates and see which lender is willing to offer you the best package.
4. Verify your information
If you do decide to go with Axos Bank, you’ll need to verify your information that you provided during the application process. You’ll need to provide your Social Security number, a copy of your driver’s license or state ID and proof of income. Axos Bank will perform a hard credit check if you choose to move forward with the loan, which can cause your credit score to drop by a handful of points.
5. Close on your loan
In the final stage, you’ll need to officially accept your loan by signing a contract agreeing to repay it. Be sure to look over and understand the terms of the agreement before signing. Once you’ve signed, Axos Bank will provide your funds within two days.
How Axos Bank compares to other personal loan companies
Even if you believe Axos Bank aligns with what you’re looking for in a personal loan, it never hurts to shop around and compare other lenders. Here’s how Axos Bank stacks up against similar personal loan lenders.
| Axos Bank | Discover | LendingClub | |
|---|---|---|---|
| LendingTree’s rating | 3.2/5 | 4.0/5 | 3.9/5 |
| Minimum credit score | 730 | 720 | 600 |
| APRs | 11.79% - 20.84% | 7.99% - 24.99% | 8.91% - 35.99% |
| Loan amount | $7,000 to $50,000 | $2,500 to $40,000 | $1,000 to $40,000 |
| Repayment term | 36 to 72 months | 36 to 84 months | 24 to 72 months |
| Origination fee | 1.00% - 2.00% | None | 3.00% - 8.00% |
| Funding timeline | May receive funds within two days | May receive funds as soon as the next business day | May receive funds within 24 hours of loan approval. |
| Bottom line | Axos Bank's cashback program could save you money as you pay off what you borrowed. All the same, you can probably find a cheaper lender if you have excellent credit. | Discover lets you spread out your loan payments from 36 to 84. This can help make your monthly payments more manageable, but you’ll likely pay more overall interest. | LendingClub lets you borrow as little as $1,000, so it may work best if you need a small loan. And although it has the lowest credit score requirement, it has the highest origination fees. |
How we rated Axos Bank
To come up with our star rating for personal loan companies, LendingTree considered 22 data points across three categories:
- Accessibility: We paid attention to whether lenders offered loans to nontraditional borrowers, as well as those without excellent credit scores. We also checked if lenders offered soft credit pulls, and whether they were transparent about eligibility criteria other than credit scores.
- Rates and terms: We wanted to know if lender rates, terms, amounts and fees were not only transparent, but also competitive.
- Repayment experience: We based this category on lenders’ reputations, customer support availability and unique benefits.
The data points reflect every step of the process to shop and apply for, borrow and repay personal loans. A five-star lender, for instance, has flexible eligibility requirements, offers you the chance to prequalify without commitment and supports you in zeroing your balance.
The 22 data points, culled from the lenders themselves, determine the overall rating. We score lenders consistently, sometimes awarding partial points, so that you can make apples-to-apples comparisons when shopping around.
LendingTree isn’t paid for conducting these reviews, and lenders don’t have control over their content. With our reviews and ratings, we aim to give our users the objective and exhaustive information they need to make the best possible decisions.
Frequently asked questions
Axos Bank may be a good option for personal loans as long as you have strong credit and need to borrow at least $7,000.
Axos is probably best suited for those who are willing to switch to (or start a new account with) a new bank. You can get cashback on your personal loan payments with an eligible Axos Total Loan Rewards Checking account.
To qualify for an Axos Bank personal loan, you’ll need to have a credit score of 730 or higher. If yours is lower than that, you’ll need to take steps to improve your credit score.
Axos Bank performs a hard credit pull if you plan to follow through with a personal loan — however, the lender does allow you to prequalify first. Prequalification lets you check rates without hurting your credit score.