Ally Financial, best known for its digital banking services, offers personal loans through its Ally Lending division. Ally started as the auto finance arm of General Motors in 1919. After the 2008 financial crisis, it changed its name to Ally Financial, online only. 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 healthcare providers, home improvement dealers, retail platforms and auto centers.
Best features
- No administration fees.
- No credit impact for prequalifying for a loan.
- Set up your account and manage it online.
Disadvantages
- Loans are not made directly to consumers, so you need to apply for financing from a provider.
- The maximum annual rate of these loans is higher than that of 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 all at once. These loans are made available through home improvement, automotive, retail and health care service providers.
How do Ally personal loans work?
Ally Lending offers loans for:
- Health care (fertility, audiology, aesthetics, 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 installing new hardwood floors in your home. Instead of asking you to pay for the floors up front, the installer offers financing through Ally Lending. The cost of your hardwood floor will be broken down into smaller monthly payments (plus interest). If you decide to apply, the provider will either grant you access to the Ally Lending platform so that you can start the process on your own personal device, or you can apply on-site at the provider.
There is no down payment or application fee required, and you can be prequalified in minutes with no credit impact. From there, you will be presented with loan options. All options have a fixed annual percentage rate, which varies depending on your loan terms and your creditworthiness.
Once you’ve selected a loan, you’ll submit a formal application – all online with electronic signatures – and Ally will perform a thorough credit check. If approved, you will receive an email notification and you will be mailed a billing statement with instructions on how to set up your account.
In the meantime, Ally will pay the entire parquet installer directly, leaving you to pay the loan back to Ally.
What are the terms, fees and conditions of Ally Lending?
Ally Lending offers a range of rates and terms for its different types of loans. 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 APR ranges vary widely, your credit and the length of term you choose can have a big impact on your interest rate. Note that for health care loans, the APR ranges may vary depending on the type of service you are purchasing.
How do you qualify?
Borrowers must be U.S. citizens or permanent residents and be at least 18 years of age. 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 the availability of loans may vary depending on the 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 affected businesses in all states. On the consumer side, customers won’t know if a vendor offers an optional Ally loan until they engage with a vendor.
Is the lender trustworthy?
Ally Financial has a D rating with the Better Business Bureau, primarily due to unresolved consumer complaints from former auto loan customers, and it is not a BBB accredited business. Ally Financial is also rated 1.3 out of 5 on Trustpilot. In 2020, the Consumer Financial Protection Bureau received 2 complaints regarding Ally Financial personal loans. In both cases, the company provided a quick response.
How is Ally Lending’s customer service?
Call Ally Lending’s toll-free helpline, Monday through Saturday, 8:00 a.m. to 10:00 p.m. EST. There is no online chat function available.
What are some of the online features of Ally Lending?
The entire process for applying and managing accounts with Ally Lending is digital. Once a vendor introduces the customer to the platform, prequalification is done within minutes. The customer completes the remainder of the online application. Once the loan is approved, Ally Lending pays the vendor directly. After that, customers manage their loan through Ally’s website, where they can view statements, make payments, and set up automatic payments if they choose.
Ally Lending personal loans are best for:
- People who want to spread the cost of a large purchase.
- People who wish to complete the loan process online.
- People who do not need a co-signer.
