Bank of America Personal Loan Review

Bank of America Personal Loan Review

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Bank of America does not offer personal loans. However, it does provide a variety of loans for specific needs, including mortgages, auto loans, credit cards, business loans and lines of credit.

This guide features an overview of the loan products BofA does offer, as well as a list of alternative lenders — including other banks, credit unions and online lenders — that do offer personal loans.

Bank of America’s financial products?

Bank of America doesn't offer personal loans, but the bank does provide several other loan types that include both secured and unsecured options. It is one of the largest lenders in the country and is known for providing loans with competitive rates and terms.

Here are some of the credit and loan products Bank of America offers:

  • Balance Assist™: Bank of America customers who have been with the bank for at least one year can borrow up to $500 for a flat $5 fee through its Balance Assist program. The loan is repaid in three equal monthly installments over a 90-day period.
  • Credit cards: Bank of America offers 22 credit cards, including secured credit cards, student credit cards, travel rewards credit cards and cashback credit cards. Credit cards work well for larger purchases, but you will only be able spend up to your credit limit. Plus, they can come with higher interest rates than personal loans.
  • Home equity lines of credit: A HELOC can be a good alternative to a personal loan if you need access to cash and can tap into your home’s equity. HELOC rates are more competitive than unsecured personal loan rates, but your home will be used as collateral for the loan.
  • Auto loans: If you need a loan for car financing, Bank of America offers fixed rates starting at 2.59% for new cars and 2.89% for used cars. The company allows you to lock in a loan rate for up to 30 days before you actually buy the car.
  • Mortgages: Bank of America has a wide variety of mortgage products available to borrowers in almost every state, with competitive rates and closing costs. Existing BofA customers may be eligible for reduced loan origination fees.

Alternative Personal Loan Options

Although Bank of America doesn't offer personal loans, there are plenty of other banks, credit unions and online lenders that do. See where you can get a personal loan in the breakdown below.

Banks

Personal loans aren’t available at all banks. In fact, many large traditional banks, like Bank of America, don't offer personal loans. But if you’re searching for a personal loan, it might help to start with the bank where you have a checking or savings account, or credit card. Some banks offer rate discounts or other loyalty benefits to their existing customers who open personal loans.

See the banks in the table below to see how their loan terms, like APR and loan amounts, compare.

Banks offering personal loans
  • on LendingTree's secure website
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  • on Citibank's secure website
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APR6.99% - 24.99%7.99% - 17.99% with discounts (rate may be higher)
Loan amount$2,500 - $35,000$2,000 - $12,500 for non-Citibank customers$2,000 - $30,000 for customers who apply online$2,000 - $50,000 for customers who apply by phone or in person
Loan length3 to 7 years1 to 5 years
Origination feeNoneNot specified

Discover and Citibank aren’t your only option for banks that offer personal loans. You can also find personal loans from the following banks:


Online lenders

Some lenders have tapped into the personal loans market by offering online-only lending experiences that let you compare APRs and loan offers without having to visit a branch. These lenders tend to offer some of the most competitive rates for borrowers with great credit histories. APRs can start at as low as 6% and go up to 36%, which is twice the rate cap of personal loans offered by credit unions. We compare two online lenders in the table below:

Online lenders offering personal loans
  • on LendingTree's secure website
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  • on LendingTree's secure website
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APR3.99% - 19.99%8.27% - 35.99%
Loan amount$5,000 - $100,000$1,000 - $50,000
Loan length2 to 12 years3 or 5 years
Origination feeNone1% - 6%

There are also online lenders that cater specifically to borrowers with subprime credit, which is between 580 and 669. This gives subprime borrowers access to credit they might not otherwise have, but those loans can be expensive due to high interest rates.

LightStream caters its offerings to excellent-credit borrowers and is able to offer high loan amounts and low APRs to its most eligible borrowers. On the other hand, Upstart opens its loan products to subprime borrowers, but these loans tend to come with higher APRs and lower loan amounts.


Credit Unions

Credit unions have a personal loan rate cap of 18% APR, which makes them a potentially good option for borrowers who have subprime credit. Credit unions are nonprofit and member-owned, so it might be easier to qualify for a personal loan through one as compared with a for-profit bank.

Here are two credit unions that offer competitive personal loan terms:

Credit unions offering personal loans
  • on PenFed's secure website
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  • on Digital Federal Credit Union's secure website
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Membership requirementsMembership is available to everyone
  • You live, work, worship or attend school in a DCU community, or
  • You work or are retired from a DCU-sponsored company, or
  • You belong to an eligible organization, or
  • You have a family member who is a DCU member
APRStarting at 6.49%As low as 8%
Loan amountUp to $25,000Not specified
Loan lengthUp to 5 yearsUp to 5 years
Origination feeNoneNone

Keep in mind that to qualify for these rates, you will need to become a member of the credit union. Membership typically depends on where you live or work, but you may be able to join a credit union by donating to a certain cause.

See if there are any credit unions where you live or work, or consider looking into joining a credit union with more flexible eligibility standards like the ones in the table above in order to access a personal loan with a competitive interest rate.

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