Bank of America Personal Loans: What They Offer
Yes, Bank of America offers personal loans to customers who meet their requirements. These are unsecured loans, meaning you don't have to put up collateral like a car or house. You borrow a lump sum and repay it over a set period with interest.
Bank of America calls their personal loan product the BankAmericard Personal Loan for credit card holders, though they also offer personal loans through their standard lending channels. The loan amount, interest rate, and repayment term depend on your credit history, income, and other factors the bank evaluates during the review process.
Personal loans from Bank of America can be used for many purposes: consolidating credit card debt, paying for home repairs, covering medical expenses, or funding other needs. The bank does not restrict how you use the money once you receive it.
Key Takeaways
- Bank of America offers personal loans to customers, with amounts and rates based on your credit profile and income.
- You can request a personal loan through your Bank of America account online, by phone, or in person at a branch.
- The bank will review your credit score, income, and debt-to-income ratio before deciding whether to approve your request.
- Personal loans from Bank of America are unsecured, so you do not pledge any asset as collateral.
- Repayment terms typically range from 24 to 84 months, depending on the loan amount and your circumstances.
How to Request a Personal Loan from Bank of America
If you are a Bank of America customer, you can start the process through your online account. Log in to your Bank of America profile, navigate to the loans section, and look for personal loan options. The site will show you a pre-may have access to offer if one is available based on your account history.
You can also call Bank of America's personal loan department at 1-800-933-6262 to discuss your options and answer questions about rates and terms. A representative can walk you through what information you'll need to provide.
If you prefer to speak with someone in person, visit a local Bank of America branch. A banker can review your situation and help you understand whether a personal loan makes sense for your needs.
What Bank of America Looks At When Reviewing Your Request
Bank of America will examine your credit score — this is the three-digit number that reflects your history of borrowing and repaying money. A higher score generally means better loan terms and a higher chance of approval.
The bank also looks at your income and your debt-to-income ratio, which is the percentage of your monthly income that goes toward existing debt payments. If you already owe a lot relative to what you earn, the bank may decline your request or offer a smaller loan amount.
Bank of America will review your employment history and the stability of your income. They want to see that you have a steady source of money to repay the loan. They may also look at your account history with them — how long you've been a customer and whether you've managed your accounts responsibly.
Interest Rates and Fees
Bank of America's personal loan rates vary based on your creditworthiness and market conditions. The bank does not publish a single rate; instead, you receive a rate offer based on your individual profile. Rates change over time, so the rate available today may differ from the rate available next month.
Bank of America typically charges an origination fee for personal loans, which is a one-time cost deducted from your loan amount when you receive the funds. This fee usually ranges from 0% to 10% of the loan amount, though the exact percentage depends on your credit profile and the loan terms you choose.
The bank does not charge a prepayment penalty, meaning you can pay off your loan early without extra fees. Paying early will reduce the total interest you pay over the life of the loan.
Loan Amounts and Repayment Terms
Bank of America typically offers personal loans ranging from $1,000 to $100,000, though the amount you can borrow depends on your income, credit score, and existing debt. The bank will not lend you more than they believe you can reasonably repay.
Repayment terms usually range from 24 months (2 years) to 84 months (7 years). A shorter term means higher monthly payments but less total interest paid. A longer term means lower monthly payments but more interest paid overall. You and the bank will agree on a term that fits your budget.
Your monthly payment is fixed, meaning it stays the same throughout the loan period. You'll know exactly what you owe each month, making it easier to budget.
Personal Loans vs. Other Bank of America Borrowing Options
Bank of America also offers credit cards, home equity lines of credit, and auto loans. Each serves a different purpose and has different terms.
A personal loan is unsecured and has a fixed payment schedule, making it different from a credit card, which is revolving debt with variable payments. A home equity line of credit requires you to own a home and uses your home as collateral, so it carries more risk but often has a lower rate. An auto loan is specifically for buying a car and uses the car as collateral.
If you're considering debt consolidation, a personal loan can combine multiple credit card balances into one monthly payment. If you need short-term flexibility, a credit card might work better. If you own a home and need a large amount, a home equity line of credit may offer a lower rate.
What Happens After You Receive Your Loan
Once Bank of America approves your personal loan, the funds are typically deposited into your Bank of America checking account within a few business days. You can then use the money for whatever purpose you intended.
Your monthly payment will be due on a date set by the bank, usually the same day each month. You can set up automatic payments from your Bank of America account to may support you never miss a payment. Missing payments will damage your credit score and may result in late fees.
You can view your loan balance, payment history, and remaining term through your online Bank of America account at any time. If you have questions about your loan or want to make extra payments, you can contact the bank by phone or through your account.
Frequently Asked Questions
Can I get a personal loan from Bank of America if I don't have an account with them?
Bank of America primarily offers personal loans to existing customers. If you don't have an account, you would need to open one first. You can open a checking or savings account online or at a branch, then request a personal loan once your account is active.
How long does it take to get approved for a Bank of America personal loan?
The timeline varies, but many customers receive a decision within one to three business days. Once approved, funds are typically deposited within a few additional business days. The exact timing depends on how quickly you provide any information the bank requests and whether your process requires additional review.
What if I have bad credit — can I still get a personal loan from Bank of America?
Bank of America may still consider your request even with a lower credit score, but your rate will be higher and your loan amount may be smaller. The bank looks at the whole picture, including your income and employment history. You can contact the bank to discuss your specific situation.
Can I use a personal loan to pay off credit card debt?
Yes, using a personal loan to consolidate credit card debt is a common use. A personal loan often has a lower interest rate than credit cards, which can save you money. Make sure you don't run up new credit card balances after you pay off the old ones, or you'll end up with more total debt.
What happens if I can't make a payment?
Contact Bank of America when ready if you're having trouble making a payment. The bank may be able to work with you on a temporary solution. Missing payments will hurt your credit score and may result in late fees. The longer you miss payments, the more serious the consequences become.