Need some extra cash to make home repair or to pay down high interest debts? A low rate personal loan from a reliable bank like Bank of America is a convenient way to meet your needs. Being the second largest bank holding company in the U.S. by assets, It provides a full range of consumer and corporate banking, wealth management, finance and insurance, investment banking, private banking, credit cards, investment banking and mortgage loans.
Does Bank of America Offer Unsecured Personal Loans?
Unfortunately, Bank of America no longer offers unsecured personal loans at present; however, it still offers several other personal lending options that you could go for. For those with an unsecured lending requirement, BofA is probably not the answer. Under the secured loan category, It offers an array of lending solutions. These loans must be backed by suitable collateral, such as a home, car or anything of value.
Personal Lending from Bank of America
You can obtain a variety of secured personal loans from the bank provided you have a good credit history and a reliable source of income. However, people with bad credit rating may also qualify for personal loans at affordable rates from the bank. Bad credit borrowers can get competitive rates on their loans by offering collateral against the loan amounts. They may find it hard to qualify for unsecured loans, and even if they qualify, interest rates on their loans will be higher than those of good credit borrowers. Some personal lending options offered by Bank are:
Whether you are looking to buy a brand new or a used vehicle, BofA offers auto loans that come with a number of benefits. You can easily finance your car with a low rate auto loan having flexible repayment terms and conditions. When you obtain an auto loan from the bank, you enjoy the following benefits:
- Competitive rates
- A 0.5% rate discount on auto purchase or refinance loan for BofA personal checking customers
- Fast access to funds (in as little as 24 hours)
- Online payment tools and auto loan calculators
- Dealer network that can help streamline the purchasing process
Home Equity Line of Credit
Your home opens the door to a number of possibilities. Use the equity of your existing home to secure a home equity line of credit from Bank of America and get instant access to funds whenever you need it. Use your credit line to complete a home renovation project, plan a vacation, make a major purchase, consolidate debt, or pay your child’s tuition. Basic features of this line of credit include:
- 875% variable APR
- Minimum line amount of $25,000
- Maximum line amount of $500,000 (for primary residence) and $100,000 (for second/vacation home)
- A 10-year draw period followed by a 20-year repayment period.
Home Equity Loan
This is a fixed rate loan that you can obtain by providing your home’s equity as collateral. It allows you to get the entire loan amount all at once. As you borrow a one-time lump sum, this loan is convenient for large expenses and debt consolidation. Some basic features of Bank of America home equity loan are:
- Fixed interest rate with fixed monthly principal and interest payments
- Fixed loan term ranging from 3 to 25 years
- Minimum line amount of $25,000
- Maximum line amount of $500,000 (for primary residence) and $100,000 (for second/vacation home).
Types of Personal Loans and Ways to Get the Best Deals
Personal loans can be classified into two types: secured and unsecured. To obtain a secured loan, you need to provide a collateral such as your home, car, savings account, or Certificate of Deposits. Providing collateral allows you to get lower interest rates and better loan terms. Unlike secured loans, you are not required to provide any collateral to get unsecured personal loans. Approval for the loan mostly depends on your credit score and income status. The banks generally charge higher interest rates for unsecured loans. You can follow some simple steps to get the best deals when applying for personal loans:
- Shop around, check customer review, and compare rates and terms of various lenders
- Check your current credit score and fix any discrepancies before making your loan application
- Understand your repayments terms and look out for hidden fees and charges
- Provide collateral if possible to get lower rate and better repayment terms
- Make your repayment on time and maintain your budget.
For further information, visit your nearest Bank of America branch or call a loan officer with your questions at 1.800.763.2053.