Bank of America is regarded as one of the largest and most popular banks in the country. Regardless of this, it is simply impossible to take out a personal loan with them because they don’t offer it.
If you plan on consolidating your debt, or financing a large purchase, finding another option or lender to apply for your personal loan is the only option for you.
There are many available options for you to choose from including credit unions, banks, online lenders, and even banks.
You can search around to find a good personal loan that meets your needs and to make it easy and convenient for you, we have put up this article to show you some of the best alternatives to Bank of America personal loan.
BANK OF AMERICA PERSONAL LOAN ALTERNATIVES
- Credit unions
- Banks
- Peer-to-peer Lenders
- Online lenders
#1. Credit Unions
Credit unions are nonprofit organizations and they have quite a number of competitive personal loan options which is a result of their low-interest rates on loans.
They also have lenient qualification requirements which in turn increases the chance of getting a loan.
According to DepositsAccounts, the two largest credit unions by assets that are available in many states are the PenFed and the Navy Federal.
PenFed Credit Union
PenFed personal loans are excellent in the sense that they have no origination fee for your loan and funds are fast and easy to get, you can also choose to use your loans on vacations, auto repairs, home renovations or to even consolidate your debts.
Their APR starts at 4.99% and borrowers can lend from $600 to $50,000 with a loan term of 12 to 60 months.
Eligibility for PenFed Credit Union personal loans
There are two ways in which one can become a member of the PenFed Credit Union which includes:
To qualify for membership based on employment or as a member of a qualifying organization: if you happen to be serving in the navy currently, a retired service member, or an employee of a qualifying firm or organization or even the United States government then you may be eligible for membership. You can also qualify as a member of an affinity organization.
Opening a savings or share account and depositing at least $5: if you don’t meet the above requirements you need not worry as you can still join the PenFed Credit Union by opening a savings or share an account with them and depositing at least $5 into the account you’ve opened.
Navy Federal Credit Union personal loan is a very good option if ever you need money urgently and you are qualified.
In most cases, the credit union can grant you immediate funding, and deposit funds into your savings account as soon as your loan has been approved.
To be eligible for a Navy Federal Credit Union personal loan, you must be a member of the union which is limited to all current and retired members of the armed forces and their immediate family/household members and civil personnel from the department of defense.
The Navy Federal Credit Union has an APR of 7.49% to 18.00% and a loan term of 60 months and you can borrow within $250 to $50,000.
#2. Traditional Banks
Bank of America is the second-largest bank by assets in the United States after Chase. Chase does not offer personal loans just like Bank of America. But the following two largest banks, Wells Fargo and Citibank do.
So if you are looking for a traditional bank where you can take out personal loans as an alternative to Bank of America, then you should consider these two banks.
Wells Fargo Bank
Wells Fargo Bank also offers fast and easy personal loans. When your loan is approved you are sure to get the funds in the next working day.
Also, Wells Fargo offers a no prepayment penalty even if you want to pay it before the scheduled date which helps make the personal loans affordable.
Individuals are allowed to borrow within the range of $3,000 to $100,000 and have an APR of 5.74% to 24.4% with a loan term period of 12 to 84 months.
Another good thing about Wells Fargo bank is that you can qualify for a discount in interest rates as an existing customer which will help you save money. Although checking the amount members qualify for a 0.25% deduction in interest rates.
CitiBank
To qualify for a personal loan in CitiBank you must earn at least $10,500 annually. The bank does not outline the requirements for credits, however, if you have been approved for a personal loan, you will receive a check for the loan amount within a period of five working days.
To qualify for a CitiBank personal loan you must have an eligible CitiBank deposit account that has been opened for at least three months before you can apply.
You can only apply for loans up to $30,000 or you visit the bank in person for higher loans. APR of 7.99% to 23.99% and a loan term of 12 to 60 months.
#3. Peer-to-Peer Lending
Peer-to-peer lending also referred to as P2P lending or crowdlending, is another amazing way to get an unsecured personal loan at a lower rate compared to a traditional bank loan.
It helps make personal loans more accessible than bank loans and also provides funds more quickly.
P2p lending matches an individual searching for an installment loan with another individual that is willing to lend them the money they require or need.
The borrower’s profile which includes loan request, credit score, and some other basic information is reviewed by an investor in an online marketplace.
When they agree to fund your loan, they offer you their terms and you can even choose from the various options or offers and decide on the loan package you are willing to accept.
There are different types of P2P lenders and each has its own loan product and criteria or requirements for acceptance. Below are some of the lenders and what they offer.
Prosper
Prosper is one of the oldest P2P lending marketplaces founded in 2005. They offer a wide range of loans that can be used for everything from your large purchase to debt consolidation. Borrowers can borrow from $2,000 to $40,000 in a single loan.
Although prosper doesn’t do the funding itself its investor does, with the company in charge of loan servicing and payments.
So, all loans from prospering are fixed-rate loans and the interest rate depends on your creditworthiness, loan amount, and your repayment schedule which is usually between 36 to 60 months i.e 3 to 5 years.
Another good thing about prosper is that they have no prepayment penalties and you can choose from their many types of loans.
Lending Club
Lending Club is another P2P lending founded in 2007, that offers personal loans up to $40,000. The lending club also uses the same marketplace model as prosper and they also run a soft check inquiry,
So, you can check your expected interest rate before actually getting committed to an application.
All lending club loans have a fixed rate with no exceptions to their medical loans which in turn makes the finance of health care costly.
#4. Online Lenders
There are numerous online lenders that tend to different types of borrowers according to their needs. Online lenders offer competitive interest rates.
SoFi and LightStream are two different options with very low minimum APRs. while some other online lenders include the likes of Upgrade, Upstart, and so on
SoFi
With SoFi you can be rest assured that there are no fees( not even for lateness). Individuals that wish to borrow can take advantage of the prequalification tool in order to get a rate quote with a soft credit check which will have no effect on your credit score.
SoFi has an APR of 5.74% to 20.28% which includes the autopay discount and the loan term lasts for 24 to 84 months and borrowers are allowed to borrow from &5,000 to %100,000 and with a minimum credit score of 680, you are good to go.
LightStream
LightStream is designed for people with a good credit score. They have an APR of 4.49% to 19.99% which includes the autopay discounts with a loan term of 24 to 144 months.
Borrowers can lend from $5,000 to $100,000. Although you can have up to twelve years to repay your debt, this is dependent on the use of the loan.
To qualify for Lightstream personal loan, individual borrowers will need a minimum credit score of 660 and once your loan has been approved, you can get funded on the same day which is quite impressive, although conditions might apply.
They also offer a 0.50% reduction in interest rate when you enroll for auto-pay.
Upgrade
Upgrade is another good option for individuals with bad or fair credit or for those that are interested in smaller loans as they provide a lower loan amount than most online lenders.
Your eligibility is also dependent on your free cash flow and credit score which should be a minimum of 580.
Upgrade also run a soft credit check which will have no effect on your credit score so you need not worry, they also charge an origination fee of 2.9% to 8% and a late fee of $10 and you get to receive your deposit in one working day with a repayment term of 24 to 84 months (2 -7 years).
Upstart
Upstart is an online lending platform that provides personal loans by partnering with banks. Their loans can be used for almost anything of your choice aside from illegal stuff though.
they consider education, employment, and many other variables to determine the eligibility of individuals applying.
They also consider borrowers with fair or bad credits and charge an origination fee of 0 to 8% and a late fee of $15 or 5% of your payment.
Also, Upstart runs a soft pull in order to check your rates which doesn’t affect your credit in any form with a repayment term of 36 to 60 months( 3 to 5 years) and once you qualify for an upstart loan, you can access your funds in one working day.
Conclusion
Bank of America currently does not offer personal loans and above is a list of other alternatives you can try if at all you need a personal loan and their requirements.
Another thing to consider is to look out for the best loan with the lowest rate and payments that fit into your budget and make more research before committing to a loan application or agreement.
FAQs on Bank of America Personal Loan
Not every bank offers personal loans. Examples are bank of America, chase, and capital one.
Yes, it can, the better your credit rating or scores the greater your chances of getting the lowest interest rate on your loan and vice versa.
Due to the increased administration cost in setting up the loan the interest rate is usually higher for short-term loans.
Yes, you can although the interest rates will be higher.
This depends solely on your credit history and your purpose for the loan. But it is quite unlikely that you don’t get accepted for any loan as there is a loan for everyone.
REFERENCES
- studentloanhero.com – alternatives to Bank of America personal loans
- Lendedu.com – peer-to-peer lending
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