If you need to consolidate debt or cover a major unexpected expense, you might turn to your primary bank for help. Finding the right financing is crucial for your financial health. Because Bank of America is one of the largest financial institutions in the country, millions of customers naturally assume they can borrow money there.
However, if you are searching for a traditional unsecured personal loan, you will hit a roadblock. Bank of America does not currently offer standard personal loans. The bank shifted its focus away from these products several years ago. Instead, it directs customers toward credit cards, home equity lines of credit, and specialized auto loans.
Fortunately, you have plenty of other options. Even though you cannot get a standard personal loan from this specific institution, the bank does provide a small-dollar borrowing program for existing customers. Furthermore, the broader lending market is full of competitive banks, credit unions, and online lenders ready to help you finance your goals.
This guide explains everything you need to know about Bank of America’s lending products. You will learn about their small-dollar loan program, internal alternatives like credit cards, and the best external lenders that offer traditional personal loans with favorable rates.
The Short Answer: Bank of America Personal Loans
Bank of America simply does not originate standard, unsecured personal loans. If you need to borrow $5,000 to pay off high-interest credit cards or $20,000 to renovate your kitchen, you cannot apply for a fixed-rate personal loan through their website or at a local branch.
Many major national banks stepped away from unsecured personal lending following various economic shifts. They chose to focus on secured loans (like mortgages and auto loans) and revolving credit (like credit cards). Secured loans require collateral, which lowers the bank’s risk. Credit cards generate revenue through merchant fees and revolving interest. Standard personal loans lack collateral, making them riskier for the lender.
While this might be disappointing for loyal customers who want all their financial accounts in one place, it forces you to shop around. Shopping around is actually the best way to secure a lower interest rate and save money over the life of your loan.
The Exception: Bank of America Balance Assist
There is one minor exception to the bank’s “no personal loans” rule. Bank of America offers a small-dollar borrowing program called Balance Assist. This product acts as a safer, much cheaper alternative to a predatory payday loan. It is designed strictly for short-term emergencies, like a surprise car repair or a sudden medical bill.
How Balance Assist Works
Balance Assist allows eligible customers to borrow up to $500. The loan amounts are available in increments of $100. Instead of charging a traditional interest rate or a high origination fee, Bank of America charges a flat $5 fee regardless of how much you borrow.
You repay the loan in three equal monthly installments. If you borrow the maximum of $500, your total cost is $505. You will pay roughly $168.33 each month for three months. Depending on the size of your loan, the effective Annual Percentage Rate (APR) ranges from 5.99% to 29.76%. For example, borrowing $500 yields an APR of 5.99%, while borrowing only $100 pushes the APR closer to 30%. In either case, this is drastically lower than a typical payday loan, which can carry an APR of 400% or more.
Eligibility Requirements
You cannot simply walk into a branch and request a Balance Assist loan. The bank requires you to meet specific relationship criteria.
First, you must have an active Bank of America checking account. This account must be open for at least one year. If you do not have a credit score, your checking account must be open for at least two and a half years.
Second, your checking accounts must have a positive balance. The bank also requires a history of regular monthly deposits to prove you have a steady income.
Finally, Bank of America will check your credit. They perform a hard credit inquiry, which can temporarily lower your credit score by a few points. However, they do not disclose a strict minimum credit score requirement. Approval relies heavily on your banking history with them.
Internal Alternatives from Bank of America
If you need more than $500, you will need to look at other products. Bank of America offers several financing methods that might fit your specific situation.
Bank of America Credit Cards
Credit cards are the most direct alternative for smaller expenses or debt consolidation. Bank of America issues several popular credit cards. Many of these cards offer an introductory 0% APR period for new cardholders.
If you need to make a large purchase, you can use a 0% APR credit card and pay no interest for 15 to 18 months, depending on the specific card’s terms. You can also use a balance transfer card to move high-interest debt from another lender over to Bank of America. As long as you pay off the balance before the promotional period ends, you can save hundreds of dollars in interest. Just remember that once the promotional period expires, the standard variable APR applies, which is typically much higher than a personal loan rate.
Home Equity Lines of Credit (HELOCs)
If you own a home, you might consider a Home Equity Line of Credit. Bank of America is a major mortgage and home equity lender. A HELOC allows you to borrow against the equity you have built in your house.
Because the loan is secured by your property, HELOCs generally offer much lower interest rates than unsecured personal loans or credit cards. You receive a revolving line of credit, meaning you can borrow money, pay it back, and borrow again up to your limit. This is highly useful for ongoing home renovation projects where the final cost is unpredictable. The major downside is risk. If you fail to repay a HELOC, the bank can foreclose on your home.
Auto Purchase and Refinancing Loans
Sometimes people seek a personal loan to buy a used car from a private seller or to pay off an expensive vehicle loan. Bank of America offers dedicated auto loans for these exact purposes. Auto loans are secured by the vehicle itself, resulting in favorable interest rates. You can apply for a new car loan, a used car loan, or an auto refinance loan directly through their website.
Top Big Bank Alternatives for Personal Loans
If you definitely want an unsecured personal loan from a traditional brick-and-mortar institution, several large competitors are ready to help. These banks offer the security of a major financial institution and the convenience of physical branches.
U.S. Bank
U.S. Bank is an excellent alternative that rewards its existing customers. They offer personal loans ranging from $1,000 to $50,000 for current account holders. If you do not bank with U.S. Bank, the maximum loan amount drops to $25,000.
Their APRs are highly competitive, especially if you set up automatic payments from a U.S. Bank checking or savings account. This earns you a 0.50% rate discount. They offer quick funding, often depositing the money into your account within hours of approval. You will generally need a credit score of 680 or higher to qualify.
Wells Fargo
Wells Fargo accommodates borrowers who need substantial funding. They offer personal loans ranging from $3,000 all the way up to $100,000. This makes them a strong choice for major home improvements or massive debt consolidation efforts.
Current Wells Fargo customers enjoy a streamlined online application process and can qualify for a 0.25% autopay discount. They do not charge origination fees or prepayment penalties. If you are not a current customer, you must visit a physical branch to apply. Wells Fargo does not offer a prequalification tool, meaning you must submit to a hard credit check to see your actual rate.
Citi
Citi provides personal loans ranging from $2,000 to $30,000. They offer fixed interest rates and repayment terms lasting between one and five years. Like the other big banks, Citi offers a rate discount for setting up automatic payments.
Citi is known for fast funding. If you already have a Citi bank account, you can receive your funds as soon as the same business day you are approved. They charge no origination fees. However, Citi requires good to excellent credit. You generally need a credit score of 720 or above to secure approval.
Best Online Lenders for Personal Loans
Online lenders disrupted the banking industry by offering streamlined digital experiences, competitive rates, and fast approval times. Because they do not have the overhead costs of maintaining physical branches, they pass those savings on to borrowers.
SoFi
SoFi is a powerhouse in the online lending space. They offer personal loans from $5,000 to $100,000. SoFi caters to borrowers with strong credit histories and high incomes.
One of their biggest advantages is the prequalification tool. You can check your estimated rate in minutes without affecting your credit score. If you proceed with the application, SoFi can often approve and fund your loan on the same day. They also allow you to pay third-party creditors directly, which is incredibly helpful if you are using the loan for debt consolidation. SoFi does not permit co-signers, so you must qualify based entirely on your own financial merits.
LightStream
LightStream, the online lending division of Truist, rewards borrowers who have excellent credit profiles. They offer loans from $5,000 to $100,000.
LightStream consistently advertises some of the lowest interest rates in the industry. They offer long repayment terms and charge absolutely no fees. There are no origination fees, no late fees, and no prepayment penalties. The main drawback is their application process. LightStream does not offer prequalification. Applying requires a hard credit pull immediately, which will temporarily impact your credit score. You also need a minimum credit score of around 700 to qualify for their best rates.
Credit Union Options for Better Rates
Credit unions operate as not-for-profit organizations. They return their profits to their members in the form of lower interest rates on loans and higher yields on savings accounts.
Alliant Credit Union
Alliant Credit Union is a digital-first institution offering personal loans from $1,000 to $100,000. They boast low fixed rates and charge no origination fees. They even offer same-day funding for approved borrowers.
To borrow from Alliant, you must be a member for at least 90 days. You can easily become a member by joining the Alliant Credit Union Foundation for a one-time $5 fee, but the 90-day waiting period means this is not a solution for immediate cash needs.
Navy Federal Credit Union
Navy Federal Credit Union serves military members, veterans, and their families. If you qualify for membership, you can access personal loans ranging from $250 to $50,000.
They offer extremely competitive rates, especially for shorter loan terms of 36 months or less. Active-duty military members receive an additional 0.25% APR discount. Navy Federal does not charge origination fees or prepayment penalties, making it an affordable way to borrow small or medium amounts of money.
How to Choose the Right Personal Loan Alternative
Finding the best loan requires a little research. Since you cannot rely on Bank of America for this specific need, you must evaluate other lenders based on your personal financial profile.
First, check your credit score. Your credit score dictates the interest rates you will receive. Borrowers with scores above 720 unlock the cheapest loans, while those with scores below 600 will face high rates and strict approval requirements. You can check your score for free through major credit bureaus or personal finance apps.
Next, gather quotes using prequalification tools. Many online lenders and some banks allow you to enter basic information to see estimated rates. This triggers a soft credit inquiry, which does not harm your credit score. Compare the Annual Percentage Rate (APR) from at least three different lenders. The APR includes the interest rate plus any upfront fees, giving you the true cost of borrowing.
Finally, read the fine print regarding fees. Avoid lenders that charge high origination fees unless your credit score leaves you with no other options. An origination fee is deducted directly from your loan proceeds. If you borrow $10,000 with a 5% origination fee, you only receive $9,500, but you still have to repay the full $10,000. Also, ensure the lender does not charge prepayment penalties so you can pay off the debt early and save on interest.
Frequently Asked Questions (FAQ)
Why did Bank of America stop offering personal loans?
Bank of America shifted its business strategy to prioritize other financial products. They focus heavily on credit cards, mortgages, home equity lines of credit, and auto loans. These products carry less risk for the bank because they are either secured by collateral or generate ongoing revolving interest revenue.
Is Balance Assist a payday loan?
No. Balance Assist is a small-dollar loan alternative designed to help customers avoid payday loans. Payday loans often carry exorbitant interest rates of 400% or higher and require full repayment within two weeks. Balance Assist charges a flat $5 fee and gives you three months to repay the funds in equal installments.
Does a Balance Assist loan affect my credit score?
Yes. Bank of America performs a hard credit inquiry when you apply for Balance Assist. This can temporarily lower your credit score by a few points. Additionally, the bank reports your payment history to the major credit bureaus. Making your payments on time can help build your credit, but missing payments will severely damage your score.
Can I get a personal loan from Bank of America with bad credit?
Bank of America does not offer traditional personal loans at all, regardless of your credit score. If you have bad credit and need a small amount of money, you might qualify for their Balance Assist program if you have a long, positive history with your checking account. For larger loans, you will need to apply with online lenders or credit unions that specialize in bad credit financing.
What is the easiest bank to get a personal loan from?
The “easiest” bank depends entirely on your credit profile. Online lenders like Upstart or Avant often have more lenient credit requirements than traditional banks. Credit unions are also known for looking past poor credit scores to evaluate your overall financial picture. Major banks like U.S. Bank and Wells Fargo generally require good to excellent credit for personal loan approval.
Next Steps for Financing Your Goals
While you cannot secure a traditional personal loan through Bank of America, you are far from out of options. The bank provides the highly affordable Balance Assist program for minor emergencies, alongside credit cards and home equity products for larger needs.
If a standard personal loan is truly the best fit for your situation, the open market offers excellent alternatives. Institutions like U.S. Bank, Citi, and SoFi provide fast funding, competitive rates, and flexible terms. Take the time to check your credit score, use prequalification tools to compare offers, and select the lender that provides the most affordable path forward.
