This big bank may not offer personal loans, but that doesn’t mean you can’t find funding elsewhere.
There are situations in life, like home improvements or planning a wedding, that require a little extra money. Enter: Personal loans. They can cover just about any expense without putting up collateral.
If you bank with Bank of America, you may have gone there first looking for a loan only to find that there are no personal loan options available. It’s inconvenient, but it shouldn’t stop you from getting the money you need. There are plenty of other lenders out there that can work with you. These are our top three alternatives to Bank of America personal loans.
Why doesn’t Bank of America offer personal loans?
Bank of America is one of many banks that chooses not to offer personal loans. Instead, it focuses on mortgages, auto loans and credit cards. Why? With mortgages and car loans, the property acts as collateral to secure the loan, which makes the loans much less risky than unsecured personal loans. If a borrower defaults, Bank of America collects the property to help pay back the loan. And with credit cards, the interest rate is much higher than personal loans, making it much more profitable — even if the risk of default is the same.
Bank of America personal loan alternatives
You still have options outside of Bank of America if you need a personal loan. Below are three viable alternatives to a personal loan from Bank of America. We selected these providers based on the variety of loan types offered. If you have fair to excellent credit, you may be able to find a loan to suit your unique needs.
Best for a wide range of loan terms: Monevo
Monevo is a connection service like Even Financial, but its lenders offer loans with lower interest rates and a wider range of loan terms.
After you fill out an application, Monevo will scan its affiliate lenders to find the right option for you. This process won’t impact your credit score, and unlike some other connection services, Monevo’s partner list is clearly outlined on its site. There’s no fee to apply through Monevo, so you won’t have to worry about being charged to find the right lender.
There are a few downsides, however. Monevo only works with a limited number of lenders and no loan is guaranteed, even if you have great credit. Monevo also has no customer support service line, so if you need to contact it about a problem, you’ll have to fill out an online form that could take days to process.
- How much you can borrow: $1,000–$100,000
- APR: 3.99% to 35.99%
- Loan term: 6 months to 7 years
- Eligibility: Credit score of 550+, legal US resident and ages 18+.
Best for comparing lenders: Even Financial
Even Financial is a connection service that allows you to compare personal loans without spending hours visiting individual lender websites and filling out applications.
With Even Financial, you complete one application. Then it scans its affiliate lenders to find loan offers that might work for you. Unlike some other connection services, it shows multiple options at once, giving you the ability to compare loans without having to complete a new application — all without impacting your credit score or charging a fee.
This doesn’t mean your loan is guaranteed, however. You’ll still have to confirm your loan with a potential lender before you’re approved. Your terms, loan amount or APR may change during this process, so make sure you fully read the loan contract before signing the final offer.
- How much you can borrow: $1,000–$100,000
- APR: 3.84% to 35.99%
- Loan term: 2 to 7 years
- Eligibility: Eligibility requirements. 550+ credit score, ages 21+, US citizen or permanent resident
Best for peer-to-peer lending: Prosper
Prosper is an option for borrowers with decent credit looking for a safe peer-to-peer (p2p) lending experience with fixed repayment terms. It’s one of the first sites to offer p2p lending, which works by funding your loan through individual investors that can choose to finance your loan fully or partially. Once investors have covered 100% of your loan amount, you’ll receive your funds.
The downside is that Prosper requires its borrowers to meet some strict eligibility criteria. Your debt-to-income ratio must be below 50%, you must have no bankruptcies filed within the past 12 months, your credit report must have less than seven inquires within the past six months and you can have no more than three open accounts on your credit report when you apply.
- How much you can borrow: $2,000–$40,000
- APR: 6.95% to 35.99%
- Loan term: 3 or 5 years
- Eligibility: Must be 18+ years old, an American citizen or US permanent resident and have a 640+ credit score.
Does Bank of America offer any similar loans?
Bank of America may not offer personal loans, but it does have secured loans and credit cards for personal use.
- Credit cards. Bank of America has a variety of credit cards that suit different needs, from individuals looking to build their credit to people who want to earn points toward travel. With a large line of credit, you may be able to finance a big expense without needing a personal loan. But since credit cards typically have higher APRs, take advantage of those cards offering 0% intro APRs like the BankAmericard credit card and the MLB® Credit Card.
- Home loans. Whether you need a mortgage for a new home, want to refinance your existing mortgage or simply want to draw on your equity through a line of credit, Bank of America can help. It has both fixed-rate and adjustable-rate mortgages available.
- Auto loans. You can use an auto loan from Bank of America to purchase a car from a dealership or private seller, buy out a lease or refinance an existing auto loan to a lower rate. You can borrow up to $125,000, and APR starts as low was 3.09%.
Compare more personal loan options
Personal loans can be a necessary tool in handling the expensive parts of life. Bank of America may not offer them, but that doesn’t mean you don’t have options. No matter if you’re looking to compare lenders easily, are interested in a wider range of loan terms or want to try out p2p lending, a variety of alternative providers can help you get the financing you need. Visit our guide to personal loans to explore even more lenders, find tips for getting the best rate on a loan, see steps for applying and more.
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