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’ll have to look elsewhere if you want to borrow a large personal loan.
Alternatives to Bank of America Loans
While there are a wide variety of national and local banks that offer personal loans, online lenders are some of the best options. But don’t worry: most are backed by a larger bank.
| LightStream | SoFi | To discover | |
|---|---|---|---|
| Bank rate score | 4.7 | 4.7 | 4.8 |
| Better for | Same day financing | Joint loans | Borrowers with good credit |
| Loan amounts | $5,000 – $100,000 | $5,000 – $100,000 | $2,500 to $40,000 |
| APRs | 7.49%-25.49%* (with AutoPay) | 8.99% to 29.49% Fixed APR | 7.99%-24.99% |
| Length of the loan | 27 years | 27 years | 36 to 84 months |
| Cost | No | Optional costs | Optional costs |
| Minimum credit score | 695 | 680 | 660 |
| Time for financing | As soon as the same day | In a few days | As soon as the next day |
LightStream
LightStream is a leading online lender offering personal loans up to €100,000. It has generous terms – up to 84 months – and rates start as low as 7.99 percent if you set up automatic payments with a 0.50 percent discount. It is also backed by Truist, a national bank. You can count on fast processing and no costs. However, there is a high minimum loan amount of $5,000 and no pre-approval process. LightStream checks your credit when you apply, which can negatively affect your score even if you’re not approved.
SoFi
Although not backed by a bank, SoFi 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 8.99 percent. You must have good credit to qualify, but a short credit history does not necessarily mean a rejection. Unlike LightStream, SoFi offers prequalification, so you can check your rate without hurting your credit score before submitting a full application.
To discover
Borrowing a loan from Discover can 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. Rates are competitive with many other top lenders, and unlike many lenders, there are no initial fees associated with borrowing. It also has a prequalification process similar to SoFi, which allows you to preview your rate with just a soft credit check.
Why doesn’t Bank of America offer personal loans?
Bank of America has no history of offering personal loans. However, there is a program called Balance Assist. Provided you have 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), 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 cannot be used to cover major expenses.
If you don’t have or don’t want to open an account with Bank of America, you can explore other personal loans.
