First Horizon Bank Personal Loans 2024 Review
First Horizon Bank is a regional bank headquartered in Memphis, TN, with locations in some southern states and a couple of states on the East Coast. Unlike many lenders in the digital banking space, First Horizon offers both secured and unsecured loan options. The bank also allows customers to borrow against brokerage accounts for personal or commercial uses. Learn more about First Horizon’s personal loan options.
First Horizon Bank has a lot of similarities to the banks cropping up in the online personal loan space. Although digital banking services are available, this bank seems to operate very much like a traditional brick-and-mortar financial institution.
That said, we find their selection of personal loan products is much broader than most online lenders—from the ability to borrow against savings and brokerage accounts to the options to get secured and unsecured lines of credit. There’s also an interest-only payment option for installment loans and personal lines of credit.
We think their loans could be ideal for people looking for the lower interest rates typical of secured loans. If you’ve got some assets that you feel comfortable using as collateral to offset your interest rate, First Horizon could help you get a better interest rate with a chance to make interest-only payments for a small period of time.
First Horizon Bank Personal Loans Pros & Cons
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Compared to Other Personal Loans
SoFi has made a name for itself for being flexible and offering good rates to its borrowers with top-notch credit and high incomes. The bank offers autopay discounts, assists eligible borrowers who’ve lost their jobs, and allows borrowers to apply with a co-signer. Another perk is that SoFi considers other factors besides credit score and income to underwrite loans.
Even with all of this in mind, it’s possible that loan rates with First Horizon Bank could be slightly lower only because their loan products require assets, reserves and/or collateral. Although your creditworthiness plays a factor in your rates for any lender, it’s generally accepted that secured loans will have lower interest rates.
If you don’t want to expose your assets to risk with a secured loan with First Horizon Bank, you’d probably go with SoFi. However, if lower rates are what you’re after, First Horizon Bank might be the best choice.
Lending Club is a lending platform backed by individual investors who lend money directly to individual borrowers. Lending Club doesn’t fund any loans directly but rather provides a marketplace to match lenders and borrowers.
Borrowers are assigned a credit "grade" based on their risk profile so investors can choose loans to fund based on their appetite for risk. Borrowers with lower grades (poorer credit) receive higher interest rates, while those with higher grades (better credit) receive lower rates.
Loan amounts can go up to $40,000 with repayment periods of three to five years. Origination fees of 1-6% are deducted from loan proceeds.
Though less flexible with higher fees than traditional banks, Lending Club may offer better options for subprime borrowers with lower credit scores and limited alternatives. If you’re looking for lower interest rates and higher borrowing limits, First Horizon Bank would be your go-to in this scenario.
Borrowers can get up to $50,000 from Upgrade for terms between 24 and 84 months. First Horizon’s terms only go to 36 or 60 months, depending on the loan amounts, though there’s the possibility of getting loans well over $50,000.
Upgrade loan applicants can check their rate with a soft credit inquiry, and approved loans could be funded as soon as one business day. First Horizon Bank’s personal loans may take 7 to 10 business days for a decision, and actual funding could take longer.
In this case, you’d choose Upgrade if you need a longer loan term and quick access to your money. But if you want to pay less in interest, then First Horizon wins out because loan terms don’t exceed 36 or 60 months, which means less interest paid over the life of the loan.
Borrowers can get up to $50,000 from Best Egg with 3-year or 5-year term options, which may not accommodate those needing terms in between or higher loan amounts.
Best Egg’s website says applicants earning over $100K annually with a credit score of 700+ qualify for the highest amounts and rates. A soft credit check allows applicants to preview potential terms without affecting their credit score. Best Egg charges origination fees between 0.99-5.99%, but First Horizon’s loan fees are not available to the public.
If you need more than $50,000, Best Egg won’t help. First Horizon Bank does offer loans over $50,000 as long as you have enough asset reserves (1x the loan amount) in an eligible bank account.
First Horizon Bank has no information on its interest rates on the public-facing website. There aren’t any discounts published for using autopay or paying creditors directly, as some lenders do.
As mentioned, interest rates for borrowers with excellent credit may likely be the lowest because the loans are secured or require asset reserves for approval.
First Horizon Bank doesn’t publish much information about its loan fees, other than a short disclaimer on their website saying, “Fees may apply.” These fees could include an origination fee, late or missed payment, and application fees.
The most likely scenario is that you will have to read your loan agreement to see the schedule of fees First Horizon Bank might charge in association with their personal loans.
The bank has two separate terms based on the loan amount. Loans less than $5,000 have a maximum term of 36 months. Loans that are over $5,000 have a maximum term of 60 months.
The amount you can borrow will depend on several factors, including your income and the amount of eligible assets that can collateralize the loan (if you choose a secured loan).
Here are some guidelines the bank provides for its unsecured loan options:
- Loans over $15,000 require asset reserves (can be at any bank.)
- For loans of $15,000 to $50,000, borrowers must have 12 months in asset reserves of the qualifying payment (i.e., 12 months of loan payments in the bank.)
- For loans over $50,000, the bank requires borrowers to have 1x the loan amount in asset reserves.
If you aren’t interested in an installment loan, the bank also has a line of credit product with the following requirements:
- $15,000 - $24,999 line: 6 months in asset reserves of the qualifying payment
- $25,000 - $50,000 line: 12 months in asset reserves of the qualifying payment
- > $50,000 line: 1x loan amount in asset reserves
If you want to borrow against your eligible First Horizon Bank accounts, here are some options and requirements to take note of:
CD/Savings Secured Installment Loan
- Minimum term: 12 months
- Maximum term: 60 months
- Repayment – choose one of the following options:
- Equal monthly payments to fully amortize the loan up to 60 months
- Interest-only monthly payments – 12 months
CD/Savings Secured Line of Credit:
- Terms: Up to 60 months
- 3% of cycle end balance, a minimum of $50 or actual balance if the line is under $50
- Interest-only monthly: Accrued finance charges or $50, whichever is greater
Only First Horizon Bank customers are eligible to apply for personal loan products. Also, you must be a resident of certain states or metropolitan areas:
- North Carolina/ South Carolina
- New York – Bronx, Kings (Brooklyn), Nassau, New York (Manhattan), Queens, Richmond (Staten Island), Suffolk, Westchester
- New Jersey – Bergen, Essex, Hudson, Morris, Ocean, Union
According to the bank’s website, here’s what you need to start the process online:
- Identification type (i.e., driver's license)
- Social Security Number
- Date of birth
- Contact information (such as address and phone number)
- Information about your employment and your income
If you don’t have online credentials for their digital banking app, you can visit a physical branch or call the bank’s toll-free customer service number.
According to First Horizon’s website, you’ll hear from the bank 7-10 business days after you’ve applied online.