Bank of America's main loan types and where to start
Bank of America offers several loan products: personal loans, home loans (mortgages), home equity loans and lines of credit, auto loans, and credit cards. The path you take depends on what you need the money for and how much you need to borrow. Start by visiting bankofamerica.com/loans or calling 1-800-432-1000 to speak with a loan officer about which product fits your situation.
Before you contact the bank, know that most loans require you to have a credit score, proof of income, and a Social Security number or ITIN. Bank of America typically pulls your credit report as part of the process, which means a hard inquiry will appear on your credit. If you do not yet have a relationship with Bank of America, opening a checking or savings account first can sometimes make the loan process smoother, though it is not required.
Key Takeaways
- Bank of America offers personal loans, mortgages, home equity loans, auto loans, and credit cards—each with different requirements and timelines.
- You will need a credit score, proof of income (usually recent pay stubs or tax returns), and a valid ID to move forward with any loan.
- Personal loans typically take one to three business days to fund once approved, while mortgages can take 30 to 45 days from application to closing.
- Bank of America's loan officers can walk you through options by phone or in person at a branch, and you can also start the process online for personal loans and credit cards.
- If your credit score is below 600, you may face higher interest rates or denial; some credit unions or online lenders may be worth comparing first.
Personal loans: timeline and what you need
Bank of America personal loans range from $1,000 to $100,000 and are unsecured, meaning you do not pledge collateral. The interest rate depends on your credit score, income, and debt-to-income ratio. You can start the application online, by phone, or at a branch.
The process typically moves like this: you submit your application with basic information (name, address, income, employment), Bank of America pulls your credit report, and a loan officer reviews your file. If approved, you receive a loan agreement to sign, and funds usually arrive in your bank account within one to three business days. The entire process from application to funding often takes less than a week, though it can stretch longer if the bank needs to verify your income or employment.
You will need recent pay stubs (usually the last two months), a recent tax return or W-2 if you are self-employed, and proof of identity. If you have been at your current job for less than two years, bring documentation of your previous employment as well. Bank of America may also ask for bank statements to confirm you have the ability to repay.
Home loans and mortgages: the longer process
Mortgages are the longest loan process Bank of America handles. From application to closing typically takes 30 to 45 days, though it can extend to 60 days if appraisals, title searches, or employment verification take longer than expected.
You will need: a completed mortgage application (Form 1003), proof of income (recent pay stubs, W-2s, and tax returns for the last two years), proof of assets (bank statements, investment statements), proof of employment (a letter from your employer or recent pay stubs), and a valid ID. Bank of America will order an appraisal of the property, a title search, and a credit report. You will also need to provide proof of homeowners insurance before closing.
The down payment requirement varies. Conventional loans typically require 3% to 20% down, while FHA loans (insured by the Federal Housing Administration) allow as little as 3.5% down. Your credit score, debt-to-income ratio, and the loan amount all affect the interest rate you receive. A loan officer can pre-may have access to you over the phone or online to give you a rough idea of what you might borrow before you formally apply.
Home equity loans and lines of credit
If you own a home and have built equity in it, Bank of America offers home equity loans (a lump sum you repay over a fixed term) and HELOCs (home equity lines of credit, which work like a credit card). Both use your home as collateral, which means the bank can foreclose if you do not repay.
The amount you can borrow depends on how much equity you have. If your home is worth $300,000 and you owe $200,000 on your mortgage, you have $100,000 in equity. Most lenders let you borrow up to 80% to 85% of your home's value minus what you still owe on the mortgage. Interest rates on home equity products are usually lower than personal loans because the bank has collateral.
The application process is similar to a mortgage: you provide proof of income, employment, and assets, and Bank of America orders an appraisal. Approval typically takes two to three weeks. HELOCs often have a draw period (usually 10 years) during which you can borrow and repay as needed, then a repayment period (usually 20 years) when you can no longer draw and must repay what you owe.
Auto loans through Bank of America
Bank of America finances new and used vehicles. You can apply online, by phone, or at a branch. The car itself serves as collateral, so the bank will place a lien on the title until you pay off the loan.
Loan terms typically range from 24 to 84 months. Shorter terms mean higher monthly payments but less interest paid overall; longer terms lower your monthly payment but cost more in interest. Your interest rate depends on your credit score, the age and mileage of the vehicle, and the loan term. Bank of America usually requires a down payment of at least 10% to 20% of the vehicle's price.
You will need proof of income, a valid driver's license, proof of insurance (required before the loan funds), and the vehicle identification number (VIN) or details about the car you plan to buy. If you are buying from a dealer, the dealer can often submit the application to Bank of America directly. Approval usually takes one to three business days, and funds are sent to the dealer or seller.
Credit cards as a borrowing option
Bank of America credit cards are another way to borrow, though they work differently than installment loans. You receive a credit limit, charge purchases up to that limit, and pay interest only on the balance you carry. There is no fixed repayment schedule—you can pay the full balance, make a minimum payment, or pay anything in between.
Credit card applications are the fastest: you can apply online and receive a decision within minutes. If approved, your card arrives by mail within 7 to 10 business days. Interest rates on Bank of America cards vary widely depending on the card and your creditworthiness. Some cards offer an introductory 0% APR period on purchases or balance transfers, which can be useful if you need to borrow for a specific period.
Credit cards report to the three major credit bureaus (Equifax, Experian, and TransUnion), so using one responsibly can help build your credit score over time. However, credit card interest rates are typically much higher than personal loan rates, so they are best for short-term borrowing or if you plan to pay off the balance quickly.
What happens if you are denied or have a low credit score
If Bank of America denies your application, you have the right to know why. The bank must provide a reason in writing, usually within 30 days. Common reasons include a credit score below their minimum threshold (often around 600 for personal loans), high debt-to-income ratio, or insufficient income to support the loan amount you requested.
If your credit score is low, you have several options. You can ask Bank of America if a co-signer (someone with better credit who agrees to repay if you do not) would help you get approved. You can also wait and work on improving your credit score before reapplying—paying down existing debt, making all payments on time, and correcting any errors on your credit report can raise your score over time. Some credit unions or online lenders have lower credit score requirements than Bank of America, so comparing options before applying can save you from multiple hard inquiries on your credit report.
Frequently Asked Questions
How long does it take to get money from a Bank of America personal loan?
Once approved, funds typically arrive in your bank account within one to three business days. The entire application-to-funding process usually takes less than a week, though it can take longer if the bank needs to verify your income or employment.
Can I get a Bank of America loan without a credit score?
Bank of America typically requires a credit score to approve a loan. If you have no credit history, you may be denied or offered a higher interest rate. Some credit unions or online lenders work with people who have no credit score; you can also build credit by becoming an authorized user on someone else's credit card or opening a secured credit card first.
What is the difference between a personal loan and a credit card from Bank of America?
A personal loan gives you a fixed amount upfront that you repay in equal monthly installments over a set term, usually with a lower interest rate. A credit card gives you a credit limit to draw from as needed, with no fixed repayment schedule and typically a higher interest rate. Personal loans are better for one-time large expenses; credit cards are better for ongoing or flexible spending.
Do I need to be a Bank of America customer to get a loan?
No, but having an existing checking or savings account with Bank of America can sometimes speed up the process. You can apply for a loan as a non-customer, though the bank will still pull your credit report and verify your income and employment.
What if I cannot afford the monthly payment after I get the loan?
Contact Bank of America as soon as you know you will have trouble. The bank may offer options like a loan modification (changing the term or interest rate), forbearance (temporarily pausing payments), or deferment (delaying payments). Missing payments will damage your credit score and may result in default, so reaching out early is important.