Bank of America offers personal loans through its personal loan product, available to existing and new customers

Bank of America's personal loan is a fixed-rate, unsecured loan you can use for almost any purpose—debt consolidation, home improvement, medical expenses, or other needs. The bank offers loans from $10,000 to $100,000, with repayment terms of 24 to 84 months. You do not need collateral, and the interest rate depends on your credit score, income, and other factors in your application.

You can apply online, by phone, or in person at a Bank of America branch. The process typically takes a few business days from application to funding, though approval timelines vary based on the information you provide and whether the bank needs to verify details with you.

Key Takeaways

  • Bank of America personal loans range from $10,000 to $100,000 with fixed interest rates and repayment terms between 24 and 84 months.
  • Your interest rate depends on your credit score, income, employment history, and debt-to-income ratio, so rates vary by person.
  • You can apply online, by phone at 1-800-731-2265, or at a local branch without needing to provide collateral.
  • Bank of America does not charge origination fees, prepayment penalties, or late fees on personal loans.
  • Funding typically occurs within a few business days after approval, though you may need to provide additional documentation during the review process.

What you need to bring or provide to apply

Bank of America will ask for your Social Security number, date of birth, and current income information. Have your most recent pay stub or tax return ready, along with your employment history for the past two years. If you are self-employed, bring two years of tax returns and a profit-and-loss statement.

You will also need to provide your current address and phone number. If you have a Bank of America checking or savings account, the process moves faster because the bank already has some of your information on file. If you are a new customer, the bank will verify your identity and may ask for a copy of your driver's license or passport.

How interest rates and monthly payments are calculated

Bank of America uses your credit score as the primary factor in setting your rate, but also considers your income, employment status, and how much you already owe relative to your income (your debt-to-income ratio). People with credit scores above 740 typically receive lower rates than those with scores between 620 and 739. The bank does not publish exact rate ranges, so the only way to know your specific rate is to start an application.

Once approved, your monthly payment is fixed for the life of the loan. A $30,000 loan at 8% interest over 60 months, for example, would have a fixed monthly payment of around $608. You can use Bank of America's loan calculator on its website to estimate your payment before you apply, though the actual rate may differ.

Fees and costs you should know about

Bank of America does not charge an origination fee (a fee to process the loan), a prepayment penalty (a fee if you pay off the loan early), or a late fee if you miss a payment. This is different from some other lenders, which charge 1% to 5% of the loan amount upfront.

The only cost beyond your interest rate is the interest itself, which accrues daily on your outstanding balance. If you pay off the loan early, you save money on interest because you are paying less total interest over time.

How to apply and what happens after you submit your application

Online applications can be started on Bank of America's website under "Personal Loans." You will enter your desired loan amount, the reason for the loan, and your basic financial information. The system will give you an estimate of your rate and monthly payment within minutes, though this is not a final approval.

After you submit, a Bank of America representative may contact you by phone or email to verify information or ask follow-up questions. This verification step typically takes one to three business days. Once verified, the bank will issue a formal approval with your final interest rate and terms. You then sign the loan agreement (either online or in person) and the funds are deposited into your Bank of America account within one to three business days.

If you are not approved, the bank will tell you why—usually because of your credit score, income level, or debt-to-income ratio. You can reapply after addressing the issue, such as paying down existing debt or waiting for negative marks on your credit report to age.

When Bank of America personal loans make sense versus other options

A Bank of America personal loan works well if you have a credit score above 660, need between $10,000 and $100,000, and want a fixed monthly payment with no surprises. The lack of origination fees and prepayment penalties makes it competitive with other banks.

However, if your credit score is below 620, you may find better rates through a credit union or a lender that specializes in lower-credit borrowers. If you need less than $10,000, a personal line of credit or a credit card with a 0% introductory period might be cheaper. If you own a home, a home equity loan or home equity line of credit (HELOC) often carries a lower rate because it is secured by your house, though it puts your home at risk if you cannot pay.

What to do if you are denied or offered a rate you do not want

If Bank of America denies your application, you have the right to a written explanation under the Fair Credit Reporting Act. Ask the bank for this explanation so you understand what to fix. Common reasons are a credit score below the bank's minimum, insufficient income, or a debt-to-income ratio above 50%.

If you are approved but the interest rate is higher than you expected, you can decline the offer and apply elsewhere. Shopping around with other banks or credit unions does not hurt your credit score if you do it within 14 to 45 days (depending on the type of loan), because multiple inquiries in a short window count as a single inquiry. You can also ask Bank of America if there are ways to lower your rate, such as setting up automatic payments or linking the loan to an existing Bank of America account.

Frequently Asked Questions

Can I get a Bank of America personal loan if I do not have an account with them?

Yes. New customers can apply online or in person at a branch. The bank will verify your identity and may ask for additional documentation, but you do not need an existing account to be approved.

What is the minimum credit score needed for a Bank of America personal loan?

Bank of America does not publish a minimum credit score, but most approvals go to people with scores of 620 or higher. If your score is below 620, you are less likely to be approved or may receive a higher interest rate.

Can I use a personal loan to pay off credit card debt?

Yes. Many people use Bank of America personal loans for debt consolidation because the fixed interest rate is often lower than credit card rates. Once you receive the funds, you can pay off your credit cards and then repay the personal loan with one monthly payment.

How long does it take to get the money after I am approved?

Funding typically happens within one to three business days after you sign the loan agreement. The money is deposited directly into your Bank of America account, or you can request a check or transfer to another bank.

What happens if I pay off the loan early?

You can pay off your Bank of America personal loan at any time without penalty. Paying early saves you money on interest because you are paying less total interest over the life of the loan.