People often wonder whether Bank of America offers personal loans, and if it does then who are eligible to qualify for the same. The question is not easy to answer. It is not difficult to find out why. Large banks tend to play safe by not allowing people to apply for an unsecured personal loan. The trend can be seen across all major banks in the US. There are very few online resources that can guide borrowers to seek personal loan from a big bank like Bank of America. Read on to know your options…
Myths and Realities Surrounding Bank of America Personal Loans
Financing Unsecured Personal Loans are a risky business for lending institutions. When it is easy for the banks to generate good revenue with high-interest credit cards, they generally do not subscribe to the idea of sub prime lending. Smaller banks or those with a strong regional presence often perform better than banks with a national outlook when it comes to generate revenue with an unsecured personal loan.
Under the light these bland facts, it can safely be assumed that getting a Bank of America personal loan is certainly an uphill task, if not impossible. For people with bad credit, it is next to impossible to fulfill the requirements of such loans from BOA. The customers of former Countrywide Financial, which is now operated by BofA under Bank of America Home Loans Servicing LP might apply for a sub prime lending solution. However, they need to check with their servicing branch before proceeding further.
Is it possible to get a Personal Loan from Bank of America?
The simple answer is “Yes”, if the borrower does not feel the urgent need for an unsecured loan. For those with an unsecured lending requirement, Bank of America is probably not the answer. Under the secured personal loan category, Bank of America offers an array of lending solutions. These loans must be backed by suitable collateral, such as a home, car or anything of value. Here are some options you might consider in this regard:-
Home Equity Loans: These loans are offered against the equity you have in a real estate property. The application process is simple and you are also assisted by the helpful BoA staff. You can even apply online or by phone. Interest rates tend to be lower than many other forms of loans, and payment terms are also manageable.
Vehicle Loans: Banks of America offer two options for an auto loan. You can either lease a vehicle or go for auto financing. Your option is also determined by the terms of dealership you choose to buy a car. Leasing is often tempting as it comes with low interest rate and simplified payments. However, it may prove unmanageable in the long run as the borrower needs to return the vehicle or pay the remaining balance at the end of the lease. There may also be additional fees associated with leasing a vehicle.
Credit Cards: These are the best option to meet day-to-day expenses and Bank of America has a simplified application procedure for those who have a good credit score. The only drawback is that they come with a very high interest rate. With a rather disciplined lifestyle and a responsible use of the card, you can overcome the financial risk associated a credit card.
Last but not the least, don’t forget to use a calculator and determine how affordable it is for you to borrow from Bank of America. Using a debt-to-income ratio is often a good idea to start with. As a guideline, you are strongly advised to keep all your debt liabilities below 30 percent of gross income. Also check the current Bank of America Personal Loan Rates and APR to ensure the feasibility of such borrowing solutions.