Does Bank of America Offer Personal Loans? Why Doesn’t Bank of America Offer Personal Loans?

Does Bank of America Offer Personal Loans?

No, Bank of America does not offer personal loans. While the bank provides various financial services, including credit cards and small loans for unexpected expenses, it does not have a history of offering large personal loans.

Instead, individuals seeking personal loans may explore alternative options from other national and local banks or consider online lenders like LightStream, SoFi, and Discover, each with its own set of terms, loan amounts, APRs, and eligibility criteria.

Bank of America does have a program called Balance Assist, allowing qualified individuals with a Bank of America checking account to borrow up to $500 for a $5 fee. However, this offering is more limited in flexibility and may not suit those looking for larger loan amounts.

Why Doesn’t Bank of America Offer Personal Loans?

Bank of America does not offer personal loans, and the primary reason is rooted in the bank's historical business strategy. While the institution provides various financial services, including credit cards and small loans for unforeseen expenses, it has chosen not to extend its offerings to large personal loans.

Instead, Bank of America has focused on alternative products such as credit cards and the Balance Assist program, which allows qualified individuals with a Bank of America checking account to borrow up to $500 for a $5 fee. The absence of personal loans aligns with the bank's strategic priorities and may be influenced by risk management considerations or a preference for other types of financial products.

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Bank of America Personal Loan Application

Bank of America does not provide personal loans, but it does offer various loan options tailored for specific purposes, each necessitating collateral except for unsecured credit cards.

Should you wish to explore loan opportunities with Bank of America, you can navigate to their official website and proceed according to the outlined instructions. While personal loans are not part of their offerings, you can consider alternatives like secured loans backed by collateral, such as home equity loans or auto loans.

Additionally, Bank of America extends unsecured credit cards, which do not require collateral and can serve as a financing option. It's advisable to delve into the specific loan categories presented by the bank and follow their application process for the loan type that aligns with your needs and financial circumstances.

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What Are the Alternatives to Bank of America Loans?

For individuals seeking alternatives to Bank of America loans, there are several options available, particularly from other banks and online lenders. Three notable alternatives are LightStream, SoFi, and Discover.

LightStream

• Loan Amounts: $5,000 to $100,000
• APRs: 7.99% to 25.49% Fixed APR (with autopay)
• Loan Term Lengths: 24 to 84 months
• Minimum Credit Score: 695
• Time to Funding: As soon as the same day
• Why: Best for same-day funding, backed by Truist, offering competitive rates and flexible terms.

SoFi

• Loan Amounts: $5,000 to $100,000
• APRs: 8.99% to 25.81% Fixed APR
• Loan Term Lengths: 24 to 84 months
• Minimum Credit Score: 680
• Time to Funding: Within a few days
• Why: Ideal for joint loans, good credit borrowers, and offers prequalification without affecting credit score.

Discover

• Loan Amounts: $2,500 to $40,000
• APRs: 7.99% to 24.99%
• Loan Term Lengths: 36 to 84 months
• Minimum Credit Score: 660
• Time to Funding: As soon as the next day
• Why: A direct bank option with competitive rates, no origination fees, and a prequalification process.