Bank of America Personal Loan Review: What Does It Offer?
Bank of America Personal Loan Review: What Does It Offer?
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Unfortunately, Bank of America does not offer personal loans. However, the bank does provide a variety of loans for specific needs, such as mortgages, auto loans, credit cards, business loans and lines of credit. We put together this guide to give you a quick overview of the loan products BofA offers, as well as provide you with alternatives to apply for—be it from other banks, credit unions or online lenders.
Review: Should You Apply for Bank of America's Other Loans?
As previously stated, Bank of America doesn't offer personal loans. But the bank does provide other loan types with 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. It should be noted, however, that the bank has had a mixed history of consumer issues. Most recently, BofA was fined $45 million for poor treatment of some mortgage borrowers.
Here are some of the loans Bank of America offers and how they stack up to the rest of the market:
Auto Loans: If you want a personal loan to purchase a car, you should consider taking out an auto loan through Bank of America instead. The bank offers rates from 3.39% with discounts for Bank of America customers. That's a lower than average rate. Most other auto loans are offered at interest rates around 4.21%. You can also lock in your rate for 30 days, if you haven't yet found the car you want.
Mortgages: Bank of America also has a wide variety of mortgage products available to borrowers in almost every state, with competitive rates and closing costs. However, the lender has had some servicing issues in the past and continues to have a high proportion of borrower complaints. For more information, check out our full review here.
Credit Cards: Bank of America offers over 20 credit cards for different types of spenders, including people with varied spending, students and those that want to earn airline miles. Credit cards work well for everyday spending and larger purchases, but you will be restricted by your credit limit.
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 provide these loans. We've searched through dozens of lenders to find the best personal loan options out there. Here is a list of some of the top options:
Banks
Many large traditional banks don't offer personal loans but provide more specialized loans, like Bank of America. Out of the five largest banks, only Citibank and Wells Fargo offer personal loans, but there are other smaller banks that can provide you with loans as well.
PNC Bank
- on PNC Bank's secure website
PNC Bank is our top choice out of the banks that offer personal loans. The lender is best for borrowers looking to get secured loans, as it offers up to $100,000 with loan terms up to 15 years, while only providing a maximum of $35,000 for unsecured loans. But it offers competitive rates for both secured and unsecured loans, starting at 5.99%, and you don't need to be a PNC customer to apply.
Citibank
- on Citibank's secure website
Citibank personal loans are best for existing customers, especially borrowers with premier accounts or high deposit balances. You can get unsecured loans with up to $50,000 and receive up to 1.5% off your rate if you have a qualifying account. Rates start at 7.99%, which is higher than PNC Bank and many online lenders, so, unless you have a premier account, you should shop around for other personal loan options.
Credit Unions
Several credit unions offer personal loans and tend to have lower rates for borrowers with little or average credit history than most traditional banks and online lenders, since they have a personal loan rate cap of 18%. Keep in mind that in order to qualify for these rates, you will need to become a member of the credit union.
Pentagon Federal Credit Union
- on PenFed's secure website
Pentagon Federal Credit Union (PenFed) is best for borrowers with fair to average credit as its personal loan rates are capped at 18%. It only lends up to $25,000 and rates start at 6.49%, which may not be the best option for borrowers with excellent credit history. You will need to be a member to qualify, but anyone can become a member, so nonmembers should still consider it.
Digital Federal Credit Union
- on Digital Federal Credit Union's secure website
Digital Federal Credit Union (DCU) is also a great option for borrowers with fair to average credit, but membership is not open to everyone. In order to become a member, you must be part of an eligible organization, be related to a current member or live in certain areas of Massachusetts or Georgia. Also, rates for DCU start at 9%, so if you have good credit, PenFed may be a better option.
Online Lenders
Online lenders tend to have some of the most competitive rates for borrowers with great credit histories. Rates can start at as low as 3% but can also go up to 36%, which is twice the rate cap of credit unions.
LightStream
- on LendingTree's secure website
LightStream is one of the best options available to borrowers as it offers low rates and lends up to $100,000. The company also has fast funding times with same-day funding available in some cases. The lender does require a credit score of at least 660 and also suggests borrowers to have a few years of credit history, a variety of account types and a low debt-to-income ratio.
OneMain Financial
- on LendingTree's secure website
OneMain Financial is a great option for borrowers with credit scores under 620 that don't want to join a credit union. Almost half of OneMain Financial's total lending volume goes to borrowers with credit scores under 620, and the company lends up to $30,000. Rates for unsecured loans start at 18%. The main drawback for borrowers is that you will have to visit a branch to complete your loan process.
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