Ally Financial, best known for its digital banking services, offers personal loans through its Ally Lending division. Ally began as the auto financing arm of General Motors in 1919. After the 2008 financial crisis, it rebranded and became the online-only Ally Financial. The Ally Lending division was born when the parent company acquired Health Credit Services in 2019.
Ally does not offer personal loans directly to consumers. Instead, Ally Lending operates on what’s called a business-to-business-to-consumer model. It offers loans through partners including health care providers, home improvement dealers, retail platforms and automotive centers.
- No application fees.
- No credit impact to prequalify for a loan.
- Set up your account and manage it online.
- Loans are not direct to consumer, so you must apply for financing through a provider.
- The maximum annual percentage rate for these loans is higher than many credit cards.
What Can Ally Lending Personal Loans Be Used For?
Ally Lending offers installment loans for those who want to pay for a service over time rather than in one lump sum. These loans are made available through providers in home improvement, auto, retail and health care.
How Do All Personal Loans Work?
Ally Lending offers loans for:
- Health care (fertility, audiology, cosmetic, dental, orthopedic, veterinary).
- Home improvement (windows and doors, flooring, roofing, siding, plumbing, electrical, HVAC, pool repair).
- Automotive (repairs, modifications, upgrades).
- Retail stores.
Here’s how the process works: Let’s say you’re thinking about putting new hardwood floors in your home. Instead of asking you to pay for the floors upfront, the installer offers you financing through Ally Lending. Your hardwood floor cost will be broken into smaller monthly payments (plus interest). If you decide to apply, the provider will either grant access to the Ally Lending platform so you can start the process on your own personal device, or you can apply on the spot at the provider’s location.
There is no down payment or application fee required, and you can get prequalified in a couple of minutes without credit impact. From there, you will be presented with some loan options. All options have a fixed annual percentage rate, which varies based on your loan terms and creditworthiness.
Once you select a loan, you will submit a formal application – all online with e-signatures – and Ally will do a hard credit check. If approved, you will receive notification via email and will be mailed a billing statement with instructions on how to set up your account.
In the meantime, Ally will pay the hardwood floor installer in full directly, leaving you to pay back the loan to Ally.
What Are Ally Lending’s Terms, Fees and Conditions?
Ally Lending offers a range of rates and terms for its various loan types. Here’s how it breaks down:
|Vertical||APR Range||Term Range||Minimum/Maximum Loan Amount|
|Home Improvement||0% – 26.99%||24 to 180 months||$500/$65,000|
|Auto||9.99% – 26.99%||12 to 60 months||$250/$40,000|
|Retail||0% – 26.99%||3 to 60 months||$250/$40,000|
|health care||3.99% – 26.99%||3 to 84 months||$750/$40,000|
Because the APR ranges vary widely, your credit and the term length you choose can have a big impact on what your interest rate will be. Note that for health care loans, the APR ranges may vary depending on the type of service you are purchasing.
How Can You Qualify?
Borrowers must be US citizens or permanent residents and at least 18 years old. While consumers can take out a loan for someone else, Ally Lending does not allow co-signers.
Beyond that, each loan has its own underwriting requirements, and loan availability can vary by service provider.
What Credit Score Do You Need?
For each type of personal loan, the minimum credit score requirement is 580.
Where Does Ally Lending Operate?
Ally Lending point-of-sale financing is available to applicable businesses in all states. On the consumer end, customers will not know if a provider offers an Ally loan as an option until they engage with a provider.
Is the Lender Reputable?
Ally Financial has a D- rating with the Better Business Bureau, mainly because of unresolved consumer complaints from former auto loan customers, and it is not a BBB-accredited business. Ally Financial also has a 1.3 out of 5 rating on Trustpilot. In 2020, the Consumer Financial Protection Bureau received 2 complaints about Ally Financial personal loans. In all 2 cases the company provided a timely response.
How Is Ally Lending’s Customer Service?
Call Ally Lending’s toll-free customer service hotline Monday to Saturday from 8 am to 10 pm Eastern Time. There is no online chat feature available.
What Are Some of Ally Lending’s Online Features?
The entire application and account management process with Ally Lending is digital. Once a provider introduces the customer to the platform, prequalifying is done in a couple of minutes. The customer completes the rest of the application online. Once the loan is approved, Ally Lending pays the provider directly. After that, customers manage their loan through Ally’s website, where they can view statements, make payments, and set up auto payments if they wish.
Ally Lending Personal Loans Are Best for:
- People who want to spread out the cost of a major purchase.
- People who want to complete the loan process online.
- People who don’t need a co-signer.