Bank of America does offer personal loans, but only to existing customers with established banking relationships
Bank of America personal loans are available through their consumer banking division, but you cannot walk in and get one without already being a customer. You need an active checking or savings account, and the bank reviews your account history, credit score, and income before deciding whether to lend to you. Loan amounts typically range from $1,000 to $50,000, with terms of 24 to 84 months depending on the amount and your creditworthiness.
The application process happens online, by phone, or in a branch. You can check your rate without a hard credit pull first, which means your credit score won't take a temporary dip just for looking. If you proceed, Bank of America will pull your full credit report and verify your income through tax returns, pay stubs, or bank statements.
Funds typically arrive within one to three business days after approval, though this varies based on how you receive the money. If you set up a transfer to an external account, it may take longer than a deposit to your existing Bank of America account.
Key Takeaways
- Bank of America personal loans require you to be an existing customer with an active deposit account in good standing.
- Loan amounts range from $1,000 to $50,000, with repayment terms between 24 and 84 months.
- You can check your rate online without triggering a hard credit inquiry, but approval requires a full credit report and income verification.
- Interest rates depend on your credit score, income, and banking history with Bank of America, not a fixed rate for all borrowers.
- Funds arrive within one to three business days after approval, usually faster if deposited into your existing Bank of America account.
Interest rates and fees vary based on your credit profile
Bank of America does not publish a single interest rate for personal loans. Instead, rates are determined individually based on your credit score, income, debt-to-income ratio, and how long you have been a customer. Someone with a 750 credit score will pay a different rate than someone with a 650 score, even if both are applying on the same day.
The bank charges an origination fee, which is a one-time cost deducted from your loan amount before you receive the funds. This fee ranges but is typically between 1% and 10% of the loan amount, depending on your creditworthiness and the loan size. A $10,000 loan with a 5% origination fee means you receive $9,500 and owe back $10,000 plus interest.
There is no prepayment penalty, so you can pay off the loan early without extra charges. Bank of America also does not charge a late fee in the traditional sense, but missed payments will damage your credit score and may trigger collection activity.
How to apply for a Bank of America personal loan
Start by logging into your Bank of America online banking account or mobile app. Look for the personal loans section, usually found under "Borrow" or "Loans." You can also call 1-800-933-6262 to speak with a loan officer, or visit a local branch with your ID and recent pay stubs.
The online application asks for basic information: your employment status, annual income, and what you plan to use the loan for. You will also confirm your Social Security number and authorize a credit check. At this stage, you can see your estimated rate range without a hard inquiry.
If you decide to move forward, Bank of America will pull your full credit report and request verification of income. This typically means uploading recent tax returns (usually the last two years) or recent pay stubs (usually the last 30 days). Self-employed borrowers may need to provide business tax returns or profit-and-loss statements instead.
Once approved, you choose your loan term and review the final terms. The funds are then disbursed, usually within one to three business days. You can request the money be sent to your Bank of America account, transferred to another bank account, or issued as a check.
When Bank of America personal loans make sense
A Bank of America personal loan works best if you are already a customer and need money for a specific purpose—consolidating credit card debt, paying for home repairs, or covering medical bills. The main advantage is speed: if you are approved, you have the money within days, not weeks.
The loan is also unsecured, meaning you do not have to put up collateral like a car or house. This makes it simpler than a home equity loan or auto loan, though the interest rate will be higher because the bank has less protection if you default.
Bank of America personal loans are less useful if you have poor credit, because the rates will be high and you may not be approved at all. If your credit score is below 600, you will likely find better terms elsewhere or may need to work on your credit first. Similarly, if you need more than $50,000, a personal loan is not the right tool—you would need a home equity line of credit or a different type of borrowing.
Alternatives if you do not may have access to or want to compare
If you are not a Bank of America customer, you cannot get a personal loan from them. You would need to open a checking account first, which takes time and does not may provide approval later. Other banks and online lenders offer personal loans to non-customers, so comparing options may be faster.
Online lenders like LendingClub, Upstart, and SoFi often have lower credit score requirements than traditional banks and can fund loans in one to two business days. Credit unions sometimes offer personal loans at lower rates than banks, especially if you have been a member for a while. If you have a credit card with Bank of America, you could also transfer a balance to a card with a 0% introductory rate, though this only works if you are consolidating credit card debt.
If you need a larger amount, a home equity line of credit (HELOC) or home equity loan through Bank of America typically offers lower rates than a personal loan, but requires you to own a home and use it as collateral. A cash-out refinance on your mortgage is another option if you own property and rates are favorable.
What happens after you receive the loan
Your monthly payment is automatically deducted from your Bank of America checking account on the same date each month. You can see your remaining balance and payment schedule in your online account. If you want to pay more than the minimum or pay off the loan early, you can do so without penalty.
The loan appears on your credit report as an installment account. Making on-time payments helps your credit score over time, while missed payments hurt it. If you miss a payment, Bank of America will contact you, and the late payment will stay on your credit report for seven years.
If your financial situation changes and you cannot make payments, contact Bank of America immediately. They may offer a temporary forbearance or payment plan, though this is not may provide. Ignoring the problem will result in default, which can lead to wage garnishment or legal action.
Frequently Asked Questions
Do I need to be a Bank of America customer to get a personal loan?
Yes. You must have an active checking or savings account with Bank of America in good standing. If you do not have an account, you would need to open one first, which does not may provide you will be approved for a loan later.
What credit score do I need for a Bank of America personal loan?
Bank of America does not publish a minimum credit score, but most approvals go to borrowers with scores of 650 or higher. If your score is below 620, approval is unlikely. The higher your score, the lower your interest rate will be.
Can I use a Bank of America personal loan for any purpose?
You can use the loan for most purposes—debt consolidation, home repairs, medical bills, travel, or education. Bank of America does not typically fund illegal activities or certain high-risk uses, but for standard personal expenses, there are no restrictions on how you spend the money.
How long does it take to get approved and receive the money?
Approval can happen within hours or take a few business days, depending on how quickly you provide income verification. Once approved, funds arrive within one to three business days. If you deposit the money into your existing Bank of America account, it is usually faster than a transfer to another bank.
What if I pay off the loan early?
There is no prepayment penalty with Bank of America personal loans. You can pay off the entire balance at any time without extra charges. Paying early saves you interest, though it does not remove the loan from your credit report immediately—it will show as paid off.