First Midwest Bank Personal Loans Review
First Midwest Bank is known for its exceptional personal loans which feature low rates, flexible terms and fast funding. A personal loan from First Midwest is best suited for those who have good credit or better. People who fall in the lower rungs of credit scoring may not qualify so they’ll be better served by another lender.
First Midwest Bank at a glance
|Lender||APR||Min. Loan||Max. Loan||Terms||Key Benefit|
|First Midwest Bank||6.65% – 15.44%||$5,000||$25,000||12 – 60 months||Low rates and fees|
What we like about it
First Midwest Bank offers a compelling personal loan option that features competitive interest rates that rival many larger and well-known institutions. There is no origination fee, which can save borrowers hundreds of dollars on the loan’s grand total. Further, First Midwest Bank’s personal loans are geared toward those who want to consolidate debt or make home improvements.
Another great benefit of borrowing from this lender is that it welcomes self-employed or non-traditional applicants. While many lenders shy away from working with those who have non-traditional employment, First Midwest Bank will approve loans to self-employed individuals. This should come as a comfort to those who don’t have a traditional employment situation and would like to secure a personal loan.
Perhaps one of the biggest benefits of getting a personal loan from First Midwest Bank is that the loan decisions are made quickly, with funding in just three days from approval. This certainly makes the bank stand apart as the loan approval and funding process for many traditional banks can take weeks to complete.
Things to consider
This wouldn’t be a comprehensive First Midwest Bank personal loan review without mentioning the things that you should consider before deciding to apply for a loan. First, you’ll be required to have a good credit score, typically 680 or higher, five years of credit history and no past bankruptcies, repossessions or other major credit problems. Additionally, proof of employment or income is often required. These requirements will exclude newer borrowers or those with blemishes on their reports. However, if you don’t meet the requirements but know someone who does, you can apply with a co-borrower.
Next, there’s no prequalification process for this loan. That means that a hard pull will be done right at the beginning to determine if you’re eligible. This is a downfall for those who’d like to shop around for the best personal loans rates as it’s not ideal to have a hard pull done until you’re settled in your decision.
The last thing that you should be aware of if you’re considering First Midwest Bank for your personal loan is the fact the maximum borrowers can finance is $25,000, which is relatively low when compared to other borrowers such as Upstart and Upgrade that offer loans up to $50,000.
What you need to know
At First Midwest Bank, personal loans come with a competitive APR range of 6.65% to 15.44% APR. There is no origination fee; however, there is a documentation fee of $100. When checking interest rates and eligibility, a hard pull is required to determine your creditworthiness, there is no soft pull prequalification. Currently, First Midwest Bank offers its personal loans to only 24 states. Borrowers need to have a relatively high credit score of around 680 or above in order to qualify. Those who have a lower credit score will not be considered; however, there are a variety of other lenders who offer bad credit loans if you have a subprime credit score, .
First Midwest Bank also focuses on debt consolidation loans and home improvement loans. With low loan limits and very competitive APRs, it can be much easier to consolidate debt and credit card balances through First Midwest Bank rather than pay the high interest rates on credit cards. At the end of a home improvement project, you could pay less in interest on a personal loan through First Midwest Bank than funding the project with a credit card.
Fees and penalties
As far as fees and penalties go, First Midwest Bank personal loans are very generous. There is no origination fee to contend with, which is typical for many personal loans and can easily tack on a few hundred dollars to the total of the loan. The only fee that applies is the one-time, $100 documentation fee that you’ll pay at the beginning of your loan.
Aside from the documentation fee, there are no other fees to worry about with your personal loan from First Midwest as long as you make your monthly payments on time.
Collateral and criteria
In order to be eligible for a personal loan from First Midwest Bank, you must have a credit score that is considered good, 12 months of employment history and at least five years of credit history. Additionally, borrowers must be at least 18 years or older, have a current ID and provide a valid social security number. Because these are unsecured personal loans, no collateral is required to open a loan with First Midwest Bank.
Lastly, you must reside in one of the 24 states where First Midwest Bank does business.