Ally Personal Loans 2024: Home Improvement Financing and Alternatives
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Ally Bank doesn’t offer personal loans directly to consumers. Instead, it provides unsecured financing for home improvement projects and medical treatments through vendors that partner with the bank — general contractors and health care providers, for example.
The funds that Ally lends go to the vendor, rather than the borrower, to cover the costs of the project or procedure. With a personal loan, the money goes directly into your bank account, and you can spend it how you want.
But like personal loans, Ally loans have fixed interest rates and are repaid in monthly installments. Your annual percentage rate is decided the same way it’s decided on a personal loan: Your creditworthiness and credit score are key factors in qualifying.
» MORE: Compare home improvement loans
Borrowers can pre-qualify online with a soft-credit check, which means there’s no impact to your credit score, to see loan offers.
You typically apply for Ally financing when you’re with the vendor — from your phone with the contractor or in your doctor’s office. There are no origination or application fees.
» MORE: Best medical loans
Ally personal loan alternatives
Banks
Some large national banks, including Citibank, Wells Fargo and American Express offer personal loans. You may have to become a banking customer to get a personal loan from a bank.
Snapshot of a typical bank-issued personal loan:
Credit scores accepted: Good to excellent.
APR range: 6% to 30.49%.
Loan amounts: $1,000 to $100,000.
» MORE: Best bank loans
Online lenders
Online lenders like LightStream, LendingClub and Upstart tailor their personal loans to borrowers in different credit bands. It pays to compare lenders to see which one can offer the best rates and terms, as each company uses its own formula to set your rate.
Snapshot of a typical online personal loan:
Credit scores accepted: Bad to excellent.
APR range: 6% to 36%.
Loan amounts: $1,000 to $100,000.
You can pre-qualify for a personal loan with multiple online lenders without affecting your credit score.
 |  |  |
|---|---|---|
Est. APR6.99-25.49% | Est. APR8.98-35.99% | Est. APR7.80-35.99% |
Loan term2 to 7 years | Loan term2 to 5 years | Loan term3 to 5 years |
Loan amount$5,000-$100,000 | Loan amount$1,000-$40,000 | Loan amount$1,000-$50,000 |
Min. credit score660 | Min. credit score600 | Min. credit scoreNone |
on NerdWallet
Credit unions
Federal credit unions, including PenFed, Navy Federal and First Tech may offer personal loans with lower rates than traditional banks and online lenders because they cap APRs at 18%. Rates at other credit unions, like Alliant, look more like online and bank lenders.
Credit unions typically require you to become a member before applying for a loan. Since credit unions will consider membership and other factors in addition to your credit score when assessing an application, your local credit union is a good first stop for a personal loan, especially if you have fair or bad credit (689 score or lower).
Snapshot of a typical credit union personal loan:
Credit scores accepted: Bad to excellent.
APR range: 7.99% to 30%.
Loan amounts: $500 to $50,000.
» MORE: Best credit union personal loans
Other Ally Bank reviews
Ally offers other financial products, including:
on NerdWallet
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