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U.S. Bank: 2023 Auto loan review

2023-01-01 00:00:00

At a glance

4.2
Rating: 4.2 stars out of 5

Bankrate Score

  • Availability
    Rating: 4.7 stars out of 5
  • Affordability
    Rating: 3 stars out of 5
  • Customer Experience
    Rating: 4.2 stars out of 5
  • Transparency
    Rating: 5 stars out of 5
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About U.S. Bank

  • Moneybag

    Loan amount

    $5,000 to $100,000

  • Credit Good

    Min. credit score

    Not specified

  • Rates

    APR from

    6.86%

  • Funds available in

    Not specified

U.S. Bank pros and cons

U.S. Bank boasts the ability for in person convenience — but consider all aspects before taking out a loan.

PROS

  • Checkmark

    Wide range of term lengths

  • Checkmark

    Discounts for U.S. Bank customers

  • Checkmark

    Preapproval without vehicle information

CONS

  • Close X

    Early closure fee

  • Close X

    High minimum loan amount

  • Close X

    Strict eligibility for the lowest rates

With a nationwide footprint and a large branch network, U.S. Bank is a great option for auto loan borrowers who prefer the convenience of in-person customer service.

U.S. Bank offers low rates and a good selection of repayment terms, and applicants can receive approval the same day they apply. The bank also boasts a special discount for users who already have a U.S. Bank personal checking or savings account.

Do you qualify?

U.S. Bank does not specify its eligibility requirements for credit score or minimum income, but in order to apply, drivers must be a legal resident of the United States and be at least 18 years of age.

In order to qualify for the best rates, you must meet the following requirements:

  • Request a term of 60 months or less
  • Credit score of 800 or higher
  • Vehicle is less than 12 months old
  • Loan amount of $35,000 or more 
  • Loan-to-value (LTV) percentage of 111% to 115.99%
  • Set up autopay from a U.S. Bank personal checking or savings account
When it comes to U.S. Bank refinancing, consider the following to get the best rates:
 
  • Loan term of 36 months or less
  • Loan amount of $30,000 or more
  • Financing of 80% or less of the car’s value
  • Credit score of 800 or higher
  • Vehicle is less than 12 months old
  • Set up autopay from a U.S. Bank personal checking or savings account.

What we like and what we don’t like

Weigh these benefits and drawbacks of an auto loan with U.S. Bank before applying.
 

What we like

  • Wide range of term lengths. U.S. Bank auto loans have six repayment term options, ranging from 12 to 72 months. This gives drivers more flexibility in their monthly payment.
  • Discounts for U.S. Bank customers. U.S. Bank offers a 0.5 percent rate discount to those who set up automatic payments from a U.S. Bank checking account — a small percentage that can save a lot of money over time. 
  • Preapproval without vehicle information. Even if you’re still shopping around for your specific vehicle, you can get preapproved for a U.S. Bank auto loan. Once you’ve decided on a car, you can finalize your loan at a U.S. Bank branch.

What we don't like

  • Early closure fee. In addition to standard loan fees, U.S. Bank charges an early closure fee if you close your account within one year. This fee equals 1 percent of your original loan amount, with a minimum of $50 and a maximum of $100. 
  • High minimum loan amount. U.S. Bank has a relatively high minimum loan amount for new and used vehicles at $5,000. If you are hoping to finance an inexpensive used vehicle, U.S. Bank may not be the best option. 
  • Strict eligibility for the lowest rates. While U.S. Bank’s lowest rates look appealing, they go to drivers with a credit score of at least 800 who are financing 80 percent or less of the car’s value.

How to contact U.S. Bank

U.S. Bank encourages customers to make an appointment at a local branch with any questions, but you can also call 800-872-2657. If you have questions about your application, you can reach specialists at 800-479-4749 Monday through Friday from 7 a.m. to 10 p.m. CT or Saturday from 9 a.m. to 5 p.m. CT. You can also use the U.S. Bank website or app to check the status of your application or manage your loan.
 

Auto loan types offered

U.S. Bank offers loans for new and used cars, auto loan refinancing and lease buyouts. You can borrow anywhere from $5,000 to $100,000, and depending on the loan type you can choose a term of 12, 24, 36, 48, 60 or 72 months.
 

New and used vehicle loans

If you are looking to finance a new or used vehicle, U.S. Bank offers loans for amounts anywhere from $5,000 to $100,000. This makes it an especially great option for drivers looking to finance a more expensive vehicle. U.S. Bank also holds no restrictions on dealerships, so you can purchase your new vehicle without limitation.

Refinance

In order to qualify for the best rate, U.S. Bank does hold a fairly strict credit score requirement — a score of 800 or higher needed. Consider how this would affect your potential rate and only sign off on a refi loan through U.S. Bank if you are confident in your credit history.

Lease buyout

If you want to purchase your leased vehicle U.S. Bank offers a fairly simple lease buyout process. Benefits to purchasing your leased car include avoiding wear and tear charges along with any mileage overages. U.S. Bank also does not require a previous lease in order to arrange for the buyout.

How to apply for a loan with U.S. Bank

You can apply for a loan with U.S. Bank online, by phone or at a branch, although if you want to use the preapproval process, you’ll need to complete your loan at a branch.

Applying online should take about five minutes. After you’ve submitted your application, U.S. Bank will review your application and potentially reach out regarding auto insurance and proof of income. From there, you should receive a credit decision within two hours.

U.S. Bank FAQs

How Bankrate rates U.S. Bank

Overall score 4.2
Availability 4.7 U.S. Bank has a relatively high minimum loan amount but a wide range of repayment options.
Affordability 3 U.S. Bank carries fairly high APRs and it does hold some fees for prepayment.
Customer experience 4.2 U.S. Bank caters to borrowers through a good online experience and a mobile app, though its customer service hours are limited.
Transparency 5 U.S. Bank offers prequalification and shares available rates.

Methodology

Bankrate considers 18 data points when rating auto loan lenders. These include credit requirements, loan amount, APR ranges, shopping window along with rate and fee availability. In total, Bankrate reviewed 33 lenders and gave each a Bankrate rating, which consists of four categories:

  • Availability. Loan amounts, types and repayment options are considered in this category. A wide range of financing options results in a higher score.
  • Affordability. The interest rates, acceptance criteria and present fees are measured here. 
  • Customer experience. This category concerns online access along with app availability and customer support hours of operation. Lenders with 24/7 support carry the highest available marks.
  • Transparency. This covers the disclosure of potential fees and the ability to apply for loan prequalification.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.
Written by
Rebecca Betterton
Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers in navigating the ins and outs of securely borrowing money to purchase a car.

Edited by Auto loans editor