Bank of America Loans Review

Bank of America does not offer personal loans. Instead, it provides financing for buying a home, a car, or starting a business. Read on to learn how the bank may work for you.

Bank of America does not offer unsecured personal loans but you can still apply for a home or auto loan through the bank.

If you're interested in a personal loan you'll need to find another lender.

Here is what you can do with a loan from Bank of America:

  • Get a mortgage
  • Refinance your existing mortage
  • Obtain a Home Equity Line of Credit (HELOC)
  • Buy a car with an auto loan
  • Get a small business loan

U.S. Car Demand (2017)

However, you should be prepared for a lengthy application process. Also, many customers seeking loans have faced common annoyances like long wait times, being transferred from department to department, voice mail hell, and much more.

Types of Loans

Bank of America Mortgages and Home Loans

Mortgage loans are used to purchase property or a home. It's typically the largest loan you will ever take out and repayment plans can span as many as 30 years.

There are two main types of mortgages:

  • fixed-rate, where you have a single interest rate throughout the life of the loan
  • adjustable rate (ARM), where the amount changes from time to time

Most ARMs have a fixed interest rate period and then adjust once per year with market changes.

You may be able to refinance your mortgage, lowering your monthly payments.

U.S. Mortgage Debt Outstanding (2017)

Bank of America Home Equity Lines of Credit (HELOC)

These types of personal loans from Bank of America let you turn some of the equity you've built in your home into money that you can borrow against.

A HELOC works similarly to a credit card in that there's a credit limit involved.

One of the more innovative features of a HELOC compared to other types of loans is that it can serve as a line of credit that you can use as you need it.

If you don't take money out of your HELOC, you aren't billed.

Because your house is your collateral, the interest rate on a HELOC is similar to a mortgage rather than a credit card.

Bank of America Auto Loans

Bank of America has three types of car loans — dealer purchases of new or used cars, refinancing existing auto loans, and loans for lease buyouts.

Car purchases from independent dealers aren't eligible for loan financing, nor are consignment sales.

In order to apply for the loan, the vehicle must be 10 years old or newer and have less than 125,000 miles.

The rates for auto loans depend on your credit history, but generally speaking:

  • New car loans start at 2.99% APR
  • Used car loans start at 3.29% APR
  • Lease buyout loans start at 3.2% APR
  • Refinancing loans start at 3.29% APR

If you're looking to get a car loan from Bank of America, it's a good idea to enroll in Bank of America's Preferred Rewards program or Banking Rewards for Wealth Management programs.

Members of these programs can be eligible for a discounted APR amount that ranges from 0.25-0.50%.

There may also be loan processing fees or early payment penalties depending on the state you live in.

You can borrow a minimum of $5,000 and up to a maximum of $100,000 for your auto loan, subject to credit approval and the value of the vehicle being purchased or refinanced.

Bank of America Business Credit Lines

Have you been in business for at least two years and made at least $100,000 in sales last year?

If so, you may qualify for a business credit line.

Business credit lines from Bank of America range from $10,000-$100,000.

If you need liquidity in your business to pay bills or employees while waiting for customers to pay you, a business credit line can be precisely what you need.

Bank of America Business Term Loans

A business term loan has the same qualifications as a business credit line, but you get a one-time lump sum of money that you can pay off over the next 1-5 years.

Ideally, these types of loans are best for making large purchases, such as new technology upgrades or office equipment that can help you further grow your business.

Bank of America Secured Business Lines of Cedit and Term Loans

If you need a longer-term loan or a larger credit line than what Bank of America's unsecured loans offer and you made at least $250,000 in sales last year, you may be eligible for a secured business line of credit or term loan.

With these loans, Bank of America puts a lien on your company's assets in case you default on the loan.

If you need a lot of cash for your business and Bank of America's maximum amounts aren't enough, this type of business loan may be what you're looking for.

Types of Financing Small Businesses Have Used (2017)

Bank of America Equipment Loans

If you need to purchase expensive equipment in order to run your business, such as

packing machines, printing presses, delivery fleets and so on, an equipment loan can provide your business with the funding it needs.

How To Start Using Their Services

To get a loan from Bank of America, start by filling out the pre-qualification form online

You can get started with Bank of America's services by starting the pre-qualification process online.

This will allow you to get a customized interest rate and learn how much you can save.

If you need a pre-qualification letter, such as for a mortgage or car loan, you can get that online as well.

The pre-qualification process takes less than five minutes.

If you're already a Bank of America customer, you can sign into your account and pre-fill your pre-qualification information out online.

U.S. Households with Bank of America as a Primary Bank

How To Cancel

You will need to pay your loan in full before you can officially "stop" using Bank of America.

If you have a checking or savings account, you may be able to close your account by logging in and initializing an online chat.

Some customers have had mixed results with this option, however.

If you'd like to send a formal letter, you should include information such as how you wish to receive your remaining funds in your checking or savings account.

Make sure to include whether you want them transferred to another bank account (include the routing and ABA numbers as well as the bank account number if you wish to do this).

Then, have each account holder sign the letter and mail it to the following address:

Account Closure, FL1-300-02-074109 Gandy Blvd.

Tampa, FL 33611-3401

FAQ

  • Does Bank of America do a credit check to see if you qualify for a loan?

    Bank of America does pull your credit to determine your eligibility for many different types of loans, including how much of a credit limit you qualify for on a credit card.

  • Does Bank of America report to the three credit bureaus?

    Loans are required to be reported to the three major credit bureaus, and Bank of America does report to Equifax, Experian, and TransUnion, respectively.

  • What happens in the event that I am unable to pay back my loan?

    Should you be unable to repay your loan from Bank of America, you are encouraged to contact customer service by clicking here.

    You may need to choose the state you reside in from the drop-down menu, as well as the product you are inquiring about.

    A customer support specialist will then work with you to determine your best course of action.

  • What should my credit score be so I can be approved?

    Your credit score is just one of the factors Bank of America looks at in order to determine approval.

    You'll want to have Good or Excellent credit in order help put the odds of approval in your favor.

    However, even if you don't have good credit, you may still be approved for other products that may help you get the money you need.

  • Is it a one-time loan? Does it expire? Or do I have access to it indefinitely?

    This will depend upon the type of loan you want.

    For example, a business line of credit or a home equity line of credit can be used indefinitely provided you have enough equity or business assets to mitigate the risk.

    Other types of loans have time limits on them.

    You will need to check the details and terms of the particular loan you want in order to determine if and when it expires.

  • What is the amount I can get determined by?

    The amount of the loan you can be approved for will depend on the type of loan you need as well as several other factors, including your credit score and your debt-to-income ratio.

  • Does the loan have insurance?

    Some Bank of America loans, such as home loans, may have insurance on them.

    This is often known as Private Mortgage Insurance or PMI, which protects the bank in the event that you cannot fulfill your payments.

    Check the details and terms of your specific loan to find out if it has insurance or if insurance is needed in order to be approved.

  • Do I need to have a banking account with Bank of America in order to apply for the personal loan?

    You do not need a banking account with Bank of America in order to apply for a personal loan, but it certainly couldn't hurt — particularly when the bank is checking your credit and other features.

    If it can see that you have a robust checking or savings account with appropriate funding to cover the cost of the loan, it may help push the odds of approval in your favor.

How has Bank of America worked out for you?

Any great tips (or nightmares) to share with the rest of us?

Let us know in the comments below.

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