3 Bank of America Personal Loan Alternatives for 2020
There are no Bank of America personal loans at this time. But there are plenty of ways to borrow from BofA outside of personal loans. Bank of America still is one of the biggest lenders in the U.S., after all, ranked second in the nation in terms of assets. One reason is that Bank of America offers a variety of credit cards, with worthwhile offers for all types of applicants, from those with bad credit to those with excellent credit.
Bank of America also offers auto loans with rates starting as low as 3.54% for a new car and 3.74% for a used car. BofA refinances cars and buys out leases, too. Similarly, Bank of America offers mortgage loans, home refinancing loans and home equity loans.
Although Bank of America personal loans are not available, plenty of other banks, credit unions and online lenders do have good personal loan offers right now. Each category of lender has its own pros and cons, so WalletHub compared over two dozen of the top options to find the best deals.
Best Bank of America Personal Loan Alternatives:
- Best Bank: Wells Fargo
- Best Credit Union: Alliant Credit Union
- Best Online Lender: LightStream
Below, you can learn more about all of your top options to replace a Bank of America personal loan in your financial arsenal, including other finalists in each category.
Bank of America Personal Loan Alternative #1: Banks
Banks are the place to go when you want low interest rates. You may be able to get APRS as low as 6%, and they typically won’t exceed 25%. And if you visit a branch in person, you can apply as a credit specialist helps you through the process, though most banks allow you to apply online or by phone as well. However, bank personal loans aren’t always accessible to everyone, as they typically require credit scores of 660 or above.
|Bank||Wells Fargo||American Express||Citizens Bank|
|APR||7.24% - 24.29%||6.90% - 19.98%||7.84% - 20.91%|
|Loan amounts||$3,000 - $100,000||$3,500 - $40,000||$5,000 - $50,000|
|Loan lengths||12 - 60 months||12, 24, 36, or 48 months||36, 48, 60, 72 or 84 months|
|Credit score required||660* (but has secured personal loans for bad credit)||660||680|
Bank of America is not the only major bank with no personal loan offers, but there are still plenty of banks that do have them. You can easily compare personal loans on WalletHub.
Bank of America Personal Loan Alternative #2: Credit Unions
Unlike banks, credit unions are not-for-profit institutions. They’re more likely than banks to consider people with subpar credit for personal loans. Personal loans from credit unions also have fairly low interest rates, as federal credit unions can’t charge more than 18% on most loans (and on credit cards). State credit union maximums are determined by the state. Credit unions also let you apply in person.
|Credit Union||First Tech Federal Credit Union||Alliant Credit Union||Connexus Credit Union|
|APR||9.25% - 18.00%||6.74% - 10.74%||6.99% - 18.00%|
|Loan amounts||$500 - $50,000||$1,000 - $50,000||$2,500 - $20,000|
|Loan lengths||24, 36, 48, 60, 72 or 84 months||12, 24, 48 or 60 months||24, 36, 48, 60, 72 or 84 months|
The only trouble with credit unions is that you have to become a member first. In order to be eligible to join, you will likely have to live, work or go to school in the area in which the credit union is based. Other ways to join include working for certain companies or having someone in your family who is an existing member. Some credit unions, such as First Tech FCU, Alliant CU and Connexus CU, let anyone join, though they typically charge a small one-time fee.
Bank of America Personal Loan Alternative #3: Online Lenders
People who want the fastest decisions and funding should consider online lenders. Some might even be able to fund your loan the day you apply, though a few business days is more common. The drawback is that online lenders tend to have higher interest rate caps. Many offer APRs of 6% or lower but some can charge as much as 36%.
|APR||3.99% - 16.99%||5.99% - 16.49%||5.99% - 29.99%|
|Loan amount||$5,000 - $100,000||$5,000 - $100,000||$2,000 - $35,000 (up to $50,000 with mail offer)|
|Loan length||24 - 144 months||12 - 84 months||Up to 60 months|
|Credit score needed||660*||680||640*|
In order to come up with some of the best alternatives to Bank of America personal loans, WalletHub compared personal loan offers from more than two dozen of the largest banks, credit unions and online lenders. We did so based on a combination of metrics in seven major categories. Metrics with higher importance, such as APRs, received higher weights than others.
- Requirements: WalletHub looked at the credit score and income required for applicants. We also read up on each lender’s citizenship and identification requirements.
- APR: We found the lenders’ minimum and maximum APRs, and checked whether the rates are fixed or variable.
- Fees: Our editors considered each lender’s personal loan fees, most importantly origination fees, prepayment penalties and late fees.
- Loan amounts: We checked the minimum and maximum loan amounts available, plus the amounts of time possible to pay loans off.
- Application process: WalletHub’s editors looked into how to apply and whether it’s possible to submit a joint application. We also found out whether each lender offers pre-qualification, along with their approval and funding timeline.
- Customer satisfaction: We researched lenders’ WalletHub user reviews, Better Business Bureau ratings and Consumer Financial Protection Bureau complaints.
- Transparency: WalletHub evaluated each lender’s level of transparency regarding their loan terms and loan requirements.
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