Our Thoughts on Axos Personal Loans
MarketWatch Rating: 4.1 out of 5 stars
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Axos
Axos Bank is a solid choice for personal loans, offering a quick, online application process and relatively small fees. However, its starting interest rate is higher than you’ll find elsewhere, and you’ll need good credit to qualify. Since that is the case, you can probably find a better deal elsewhere – like on our list of the best personal loans.
Axos personal loan interest rates currently range from 11.79% to 20.84% at the time of publication. While this interest rate maximum is lower than several competitors, the minimum rate is higher. Plus, you need a credit score of at least 730 to qualify – much higher than most competitors.
Axos also deducts an origination fee from your loan amount during funding. While this origination fee is relatively small (at 1% to 2%), it’s relatively easy to avoid this type of fee with a different lender if you have good credit. The best personal loan lenders charge no fees.
Pros and Cons of Axos Personal Loans
Axos personal loans have a variety of advantages and disadvantages. Consider them all before applying for a loan.
Who Are Axos Personal Loans Best For?
Axos Bank personal loans are best for people with good to excellent credit — more specifically, those with a credit score of at least 730. They’re also best for those who want to borrow a significant, but not huge, amount of money: Axos loan amounts range from $7,000 to $50,000.
Finally, Axos loans might appeal to existing Axos bank customers who like the simplicity of keeping their bank accounts and loans under one roof.
On the other hand, Axos loans likely won’t make sense for those with bad or fair credit or who don’t have several years of well-established credit history. They’re also not ideal if you’re looking for either a very small or very large loan. And if you’re looking for the best possible interest rate on a personal loan, you may want to consider other options as well.
How To Get an Axos Personal Loan
Getting an Axos personal loan starts with getting prequalified and then filling out the application. You can complete the entire process online.
Application Process
Start by getting prequalified in about two minutes on the Axos website. You’ll then immediately receive a preapproval offer, if you qualify. If you want to continue, provide your personal information — such as your birth date, Social Security number, address and more — then upload some of the following documents, depending on your employment status:
- ID
- Recent pay stub
- Most recent W-2 tax form
- Most recent tax return
- Bank statement
After uploading the necessary documents, complete the verification steps to finish the application.
Approval and Funding
Once you submit your application, Axos will review it and perform a credit check. You should receive a loan offer within 48 hours. If you accept the offer, your funds should be available within one to three business days via direct deposit. If your application doesn’t get approved, you can still apply for a loan in the future.
To make sure the process goes as smoothly and quickly as possible, have all the right documents and information on hand during the application process. Axos may also request additional documentation, so be prepared to respond promptly.
Axos Personal Loans Reviews
Customer reviews of Axos Bank are generally negative across the board. This isn’t highly unusual, since people are more likely to leave bad reviews than good ones. However, the tenor of the reviews is worth paying attention to. While there aren’t a ton of reviews specifically focusing on Axos Bank personal loans, most reviews address the bank’s customer service.
Many customers complain of difficulties reaching customer support. There are plenty of reviews citing unresponsive reps, waiting on hold and unhelpful phone calls. Overall, customers report a lot of wasted time trying to get support with various questions and issues.
You can get a sense of the customer experience by reading the reviews from ConsumerAffairs and the Better Business Bureau (BBB) below:
“I have over an 800 credit score and a 7% debt ratio. They declined my personal loan application because I forgot the email address I used to apply saying they couldn’t verify my identity. That’s petty! And I ended up with an inquiry on my credit report. They had us jumping through hoops during the application process providing far more documents than SoFi needed, who offered the same rate and much more easily and quickly approved me.”
— Rob, Morrow, OH, May 4, 2023, ConsumerAffairs
“As others have said, it is impossible to work with their customer service. Often, a representative is not online to assist you. I have been trying for weeks to record my legal name change so that I can deposit checks that were written to my new legal name.
I submitted all of the required documentation to their secure message system 14 days ago, have replied to my own message multiple times in an effort to get a response, and still nothing. I waited 40+ minutes on their chat today to have a representative only tell me the same thing and give the generic 800 number when I asked how this could be escalated.”
— Erin, March 27, 2023, Better Business Bureau
Axos did not respond to a request for comment.
Eligibility Requirements for Axos Personal Loans
Axos doesn’t accept all loan applications. To qualify, you’ll need to meet its credit and income requirements.
Credit Score and Financial History
Axos requires a credit score of at least 730 to qualify for a personal loan. This score falls near the upper limit of the FICO scoring model’s good range. So if you have fair or poor credit, you likely won’t qualify. You also need at least four years of well-established credit history. If your credit history only dates back a couple of years, you’ll need to look elsewhere for a loan.
You typically need decent credit for any personal loan. But as Axos’ standards are a bit tighter than those of some other lenders, you may have an easier time qualifying somewhere else if your credit score is lacking.
Income and Employment
You need verifiable income to qualify for an Axos personal loan. But unlike some lenders — Discover, for example — Axos doesn’t specify a minimum income requirement.
Axos loans are available to self-employed and retired individuals, too. You’ll just need to verify your income with different documentation (bank statements or tax returns) than you might as a W-2 employee.
Axos Personal Loans Usage Rules
Like most personal loans, you can use an Axos Bank personal loan to fund almost any personal expense or purchase. Common uses for personal loans include paying for emergencies, vacations, weddings and home improvements. You can also use one to consolidate debt.
But there are a few things you can’t use your funds for, including the following:
- Investment securities
- Postsecondary education
- Short-term real estate bridge financing
Axos Personal Loans Fees and Penalties
Keep the following fees in mind when considering an Axos personal loan.
Loan Origination Fees
Axos charges an origination fee of between 1% and 2% of your loan amount, and the exact percentage depends on your credit. Axos will deduct the origination fee from the loan amount when funding it, so make sure you account for this deduction. Keep in mind, not all lenders charge origination fees. If you’re set on avoiding this cost altogether, consider borrowing from a different institution.
In addition to the origination fee, you’ll have to pay a $15 late fee for any monthly payments made after the grace period ends. And if any payment doesn’t go through due to insufficient funds, you’ll incur a $25 fee.
Early Repayment Penalties
Axos doesn’t charge any early repayment penalties. That means you can pay your loan off early without having to pay an extra fee. If you think you might want to pay off your loan ahead of schedule, this is a major bonus.
How Axos Compares to Other Lenders
Axos personal loans may be a good fit for certain borrowers with great credit, but it’s worth comparing Axos to the competitors before making a decision.
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| Star Rating | ||||
| Interest Rate (APR) | 11.79% to 20.84% | 6.99% to 25.49% | 8.99% to 29.49% | 7.99% to 17.99% |
| Loan Size Offered | $7,000 to $50,000 | $5,000 to $100,000 | $5,000 to $100,000 | $600 to $50,000 |
| Minimum Credit Score | 730 | Good to Excellent | N/A | N/A |
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| Star Rating | ||||
| Interest Rate (APR) | 11.79% to 20.84% | 6.99% to 25.49% | 8.99% to 29.49% | 7.99% to 17.99% |
| Loan Size Offered | $7,000 to $50,000 | $5,000 to $100,000 | $5,000 to $100,000 | $600 to $50,000 |
| Minimum Credit Score | 730 | Good to Excellent | N/A | N/A |
LightStream may offer more favorable loan terms than Axos when it comes to personal loan interest rates and loan amounts. For instance, LightStream’s lowest interest rate — if you enroll in autopay — is 6.99%, while Axos’ is 11.79%. LightStream also offers more flexibility in terms of loan amounts, allowing you to get a loan from $5,000 to $100,000. Similar to Axos, LightStream requires good-to-excellent credit, but it doesn’t have a specific minimum credit score requirement.
SoFi’s rates range from 8.99% to 29.49%, so while its maximum interest rate is higher than Axos’, its lowest interest rate is also lower. SoFi’s loan amounts range from $5,000 to $100,000, while Axos’ are capped at $50,000. Unlike Axos, SoFi doesn’t list specific credit score requirements, but it does require you to be employed, have an employment offer to begin work within 90 days or receive income from another source.
PenFed’s personal loan rates are on the lower end of the spectrum, ranging from 7.99% to 17.99%. PenFed doesn’t disclose specific eligibility requirements, but you do have to become a member if you qualify for a loan and want to receive funding. Anyone can join PenFed, though. PenFed also has a bit more flexibility in loan amounts compared to Axos — you can borrow up to $50,000, but you can also opt for as little as $600.
The Bottom Line
While Axos Bank personal loans may appeal to borrowers with good credit, they won’t be the best fit for anyone who has a credit score below 730. Even if you have an excellent credit score, consider Axos’ limited loan amounts, poor customer reviews and less-than-ideal interest rates before applying.
That said, Axos personal loans might be a solid fit for some — especially those who are already Axos Bank customers and want to get a personal loan from a familiar institution.
How We Rate Axos Personal Loans
Our team put together a comprehensive 100-point rating system to evaluate Axos and other personal loan companies based on factors that mean the most to you, the potential borrower. We then gathered scores of data points from across the industry, analyzing disclosures, licensing documents, sample loan agreements, marketing materials and websites for more than two dozen of the most prominent personal loan companies in the U.S.
Our rating system takes into account four broad categories. Here’s a brief breakdown of each one.
- Affordability (35%): We gauge how expensive each company’s loans are to pay back, taking into account both interest rates and fees. The highest-scoring lenders will have low minimum and maximum annual percentage rates (APRs) and low or no origination fees.
- Loan features (35%): This category measures the breadth of loan terms available to prospective customers. The most points go to lenders with a wide range of loan lengths, small minimum loans, large maximum loans, and fast funding.
- Customer experience (20%): We review each company’s application, prequalification and customer service policies and procedures to create this category score. The best companies will have simple online applications and multiple ways for customers to get their problems solved.
- Company reputation (10%): Our team analyzes each company’s Better Business Bureau file, customer reviews and any outstanding regulatory actions. The most points will go to companies with an A+ rating with the BBB, a track record of addressing customer complaints and no active regulatory orders.
| Affordability | 29/35 |
| Loan features | 17/35 |
| Customer experience | 17/20 |
| Company reputation | 10/10 |
| Total | 73/100 |
This rating system is intended to give readers a comprehensive overview of each personal loan company. However, our top-rated lenders may not be the best fit for all borrowers. To learn more, you can read our full personal loans methodology.
Frequently Asked Questions About Axos Personal Loans
You need a credit score of at least 730 to qualify for an Axos personal loan. You also need verifiable income and at least four years of credit history.
It depends on your credit score, credit history and income. If you have good or excellent credit, several years of credit history and consistent verifiable income, you can probably qualify for an Axos personal loan. However, if you have fair or poor credit, a short credit history or inconsistent income, it may be harder to qualify with Axos. Axos does not allow co-signers for personal loans.
Axos personal loans can be used for most personal expenses, including things like home improvements, travel, emergencies, medical bills and debt consolidation. But you can’t use the funds to pay for specific investments, postsecondary education or short-term real estate bridge financing.
Applying for a personal loan from Axos only takes a few minutes, but ultimately depends on how long it takes you to locate and upload the necessary documents. Start by prequalifying to get a loan estimate, which only takes a couple of minutes. If you want to continue, fill out the application, verify your information and upload the necessary documentation. Approval usually occurs within 48 hours, and funding takes between one to three business days.
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
If you have questions about this page, please reach out to our editors at editors@marketwatchguides.com.