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Key takeaways
- Personal loans aren’t among Bank of America’s product offerings.
- You can access a small, affordable short-term loan if you’re a current customer and meet the eligibility criteria.
- You can also explore Bank of America’s HELOC, car loan, mortgage and credit card products to get the funding you need.
- If none of these work for you, consider a personal loan with a different lender.
Unlike many banks, Bank of America does not offer personal loans. Instead, it offers a variety of credit card options, a small loan for unexpected expenses, and other loan products. If you want to borrow a large personal loan, you must look elsewhere.
Best personal loan rates
Want to take a look at other personal loan options? Here are the current rates from top lenders.
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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.
| Key points | LightStream | SoFi | Discover | Best Egg | Happy Money |
|---|---|---|---|---|---|
| Bankrate score | 4.7 | 4.7 | 4.8 | 4.6 | 4.5 |
| Better for | Same-day funding | Joint loans | Borrowers with good credit | Secured loan options | Paying off credit cards |
| Loan amounts | $5,000–$100,000 | $5,000–$100,000 | $2,500–$40,000 | $2,000–$50,000 | $5,000–$50,000 |
| APR | 6.24%-24.89%* (with AutoPay) | 8.74%-35.49% | 7.99%-24.99% | 6.99%-35.99% | 7.95%-29.99% |
| Loan term lengths | 24–84 months | 24–84 months | 36–84 months | 36–60 months | 24–60 months |
| Fees | None | Optional origination fee (0%-7%) | $39 late fee | Origination fee (0.99%-9.99%) | Origination fee (0%-5%) |
| Minimum credit score | 660 | No requirement | 660 | 600 | 640 |
| Time to funding | As soon as same day | Within a few days | As soon as the next day | As soon as the next business day | Three to six business days |
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LightStream is a top online lender that offers personal loans up to $100,000. It has generous terms — up to 84 months — and its annual percentage rates (APRs) start as low as 6.24 percent if you set up automatic payments for a 0.50 percent discount. It is also 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.
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Pros
- No fees enforced.
- Funding available as soon as the same day.
- Competitive starting APRs.
Cons
- No cosigners allowed.
- Good credit required.
- No prequalification available.
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Online lender SoFi’s personal loans are highly rated. This online lender offers joint applications, optional fees and a wide range of loan amounts — up to $100,000 with a starting APR of 8.74 percent. Unlike LightStream, SoFi offers prequalification, so you can check your rate without harming your credit score before you submit a full application.
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Pros
- High loan maximum.
- Option to add co-borrowers.
- Optional fees.
Cons
- Unspecific credit requirements.
- Steep minimum loan amount.
- Opting out of origination fee may mean a higher APR.
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Borrowing a loan from Discover may be a good choice if you want to work directly with a bank. It offers loans up to $40,000 and accepts borrowers with good credit. Its excellent credit rates beat those of many other top lenders, and unlike many lenders, there are no origination fees when you borrow. Like SoFi, it offers prequalification, which lets you preview your rate with just a soft credit check.
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Pros
- Excellent customer support.
- Long loan terms.
- No fee to originate loan.
Cons
- High starting loan terms.
- Minimum income of $25,000.
- Higher than average late fee enforced.
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Best Egg is one of the few lenders on the market offering secured loans with competitive terms. Like Happy Money, you can also set up direct payments to creditors if you’re using the loan proceeds to consolidate debt. The maximum loan term of 60 months may not be ideal, though, if you prefer an extended repayment period to keep your loan payments low.
Pros
- Secured and unsecured loan options.
- Competitive starting APR.
- Flexible home equity loan alternative.
Cons
- Accessible to borrowers with lower credit scores.
- Steep cap on origination fees.
- Secured loans put assets at risk.
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Happy Money is a viable option for those seeking a personal loan solely for their purpose of consolidating credit card debt. Like Best Egg, you can opt in for a feature that lets Happy Money handle the direct payments to creditors on your behalf. Keep in mind that loan proceeds cannot be used for any other purpose. So, if you need more flexibility, Happy Money isn’t the lender for you.
Pros
- Streamlined debt consolidation with direct payments.
- Lower maximum APR than competitors.
- No late payment or returned check fees.
Cons
- Limited loan use.
- Reserved for borrowers with good or excellent credit.
- No cosigners or co-borrowers.
5 other loan options from Bank of America
If you prefer to explore alternatives to personal loans, consider these options from Bank of America.
1. Balance Assist
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. Unlike traditional personal loans, it is not flexible and won’t be useful for covering large expenses. You’ll need a Bank of America checking account that is at least a year old – or 2.5 years if you don’t have a credit score – to qualify.
2. HELOC
If you have a sizable amount of equity in your home, a home equity line of credit (HELOC) is worth exploring. You can use the funds to cover an assortment of expenses or to consolidate high-interest debt. There are no application fees or annual fees, and Bank of America waives closing costs on HELOCs not exceeding $1,000,000. Rate discounts are also available to qualifying customers.
3. Mortgages
A cash-out refinance is another option if you want to tap into the equity in your home without taking out a second mortgage, like a HELOC. It involves replacing your current loan with a new, larger one from Bank of America, typically under different terms. The difference is the equity you pull out in cash that you’ll receive following closing, once your existing mortgage is paid off with the loan proceeds from the cash-out refinance.
4. Car loans
Bank of America features auto loans with competitive rates and terms of up to 72 months in its lending arsenal. You can borrow funds to purchase a new or used vehicle, refinance your current car loan or buy out your lease. If you’re a current account holder, you can pre-qualify online with no impact on your credit score. There’s also the option to lock your rate for 30 days if you’re approved for a loan, even if you are a first-time customer.
Auto loan rates and financing
Want to buy a car? Interested in seeing what the latest rates are for car loans? Bankrate has you covered with its list of lenders.
Check rates now
5. Credit cards
If none of these alternatives from Bank of America work for you, there are several credit cards to choose from for consumers with varying needs. Whether you prefer a card offering cash back, travel rewards, airline rewards, points rewards or competitive interest rates, there are options available. The bank also features credit cards for those building credit or currently enrolled in college.
Bottom line
Whether you’re current or interested in doing business with the bank, a personal loan isn’t an option with Bank of America. You’ll need to explore its other lending products to get the funding you need. But if none of these options work for you, a personal loan with an online lender could be ideal for your financial situation.
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