Bank of America personal loans: 2023 review
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Unlike many banks, Bank of America does not offer personal loans. It has quite a few credit card options — and a small loan for unexpected expenses — but you will need to look elsewhere if you want to borrow a large personal loan.
Alternatives to Bank of America loans
Although there are a wide variety of national and local banks that offer personal loans, some of the best options are online lenders. But don’t worry: most are backed by a larger bank.
LightStream is a top online lender that offers personal loans up to $100,000. It has generous terms — up to 84 months — and its rates start as low as 8.99 percent. And best of all, it is backed by Truist, a national bank. You can expect quick turnaround and no fees. However, there is a high minimum loan amount of $5,000 and no preapproval process. LightStream will check your credit when you apply, which may hurt your score even if you aren’t approved.
While it is not backed by a bank, SoFi personal loans are highly rated. This online lender offers joint applications, no fees and a wide range of loan amounts — up to $100,000. You must have good credit to qualify, but a short credit history won’t necessarily mean rejection. Like LightStream, there are no fees. But unlike LightStream, there is a preapproval process so you can check your rate before you submit a full application.
Why doesn’t Bank of America offer personal loans anymore?
Bank of America does not have a history of offering personal loans. However, it does have a program called Balance Assist. Provided you have a Bank of America checking account with positive balance, you may qualify.
The Balance Assist loan allows you to borrow up to $500 for a $5 fee. It is similar to small loans offered by federal credit unions. But unlike traditional personal loans, it is not flexible and won’t be useful for covering large expenses.