Bank of America Personal Loan Alternatives

Sometimes life throws you a curveball, and your salary or savings aren’t enough to cover a big expense like home repairs, college tuition or medical costs. Maybe you want to consolidate your debt or start a small business, but you would have a hard time qualifying for a business loan. That’s when a personal loan can come in handy.

With a personal loan, you borrow a set amount of money that is paid back (usually monthly) with a fixed rate over a set period of time. Most personal loans are unsecured meaning you don’t have to put down a deposit or have collateral such as a car or a home to get the loan. But because unsecured loans are riskier for lenders, they usually charge higher interest rates than they would for a secured loan.

Some major lenders don’t offer unsecured personal loans. For example, Bank of America, the second largest banking institution in the United States, no longer offers personal loans.

But that doesn’t mean you’re out of options — there are plenty of online lenders, credit unions and banks that offer personal loans, including large traditional lenders like Citibank, Wells Fargo, U.S. Bancorp, PNC, and SunTrust Bank.

If you’ve decided that a personal loan is a right fit for your needs, you can find them through local banks, credit unions, and online lenders. To get your best interest rates and terms, shop around. Just be aware that many lenders will do a hard pull of your credit if you apply for a loan, meaning that each credit check could ding your score. Luckily, here at MagnifyMoney, we allow you to review rates, fees, and other terms in our personal loan marketplace. 

You can also use our widget below to compare offers from up to five different lenders on LendingTree’s marketplace by filling out an online form.

How MagnifyMoney Gets Paid

Advertiser Disclosure

APR

As low as 2.49%

Credit Req.

Minimum 500 FICO^®

Terms

24 to 60

months

Origination Fee

Varies

SEE OFFERS Secured

on LendingTree’s secure website

LendingTree is our parent company

Disclosure

Online personal loan options

Many online lenders offer competitive interest rates for personal loans, especially if you have good credit. They also usually do just a soft credit pull when you apply, so you can get an interest rate quote without impacting your credit score. However, if you need to borrow a large amount of money, especially over $35,000 (generally the limit for many online lenders), you may need to look elsewhere. And although online lenders will approve loans for people with credit scores as low as 600, they’ll also charge much higher interest rates in those cases.

• Average rates: As low as 2.49%
• Term length: 24 to 60 months
• Borrowing limits: Up to $50,000

Here’s a look at some of the rates and terms for personal loans from leading lenders and online lending platforms:

How MagnifyMoney Gets Paid

Advertiser Disclosure

Company

APR

Terms

Credit Req.

As low as 2.49%

24 to 60

months

Minimum 500 FICO^®

SEE OFFERS Secured

on LendingTree’s secure website

LendingTree is our parent company

Disclosure

Disclaimer

As of 17-May-19, LendingTree Personal Loan consumers were seeing match rates as low as 2.49% (2.49% APR) on a $20,000 loan amount for a term of three (3) years. Rates and APRs were based on a self-identified credit score of 700 or higher, zero down payment, origination fees of $0 to $100 (depending on loan amount and term selected). Terms Apply. NMLS #1136

LendingTree is not a lender. LendingTree is unique in that you may be able to compare up to five personal loan offers within minutes. Everything is done online and you may be pre-qualified by lenders without impacting your credit score. Terms Apply. NMLS #1136.

(332 Reviews)

3.99% - 19.99%^*

with AutoPay

24 to 144^*

months

Not specified

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 3.99% APR with a term of 3 years would result in 36 monthly payments of $295.20.

5.99% - 20.69%^*

24 to 84

months

680

Minimum Credit Score

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

Fixed rates from 5.99% APR to 20.69% APR (with AutoPay). SoFi rate ranges are current as of January 19, 2021 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

6.99% - 19.99%

36 to 72

months

Not specified

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.

(949 Reviews)

5.99% - 29.99%

36 or 60

months

640

Minimum Credit Score

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

The Annual Percentage Rate (APR) is the cost of credit as a yearly rate and ranges from 5.99% to 29.99%, which may include an origination fee from 0.99% - 6.99% that is deducted from loan proceeds. Any origination fee on a loan term 4-years or longer will be at least 4.99%. The loan term and the APR offered will depend on your credit score, income, debt payment obligations, loan amount, credit usage history and other factors. Additionally, the APR offered is impacted by your loan term and may be higher than our lowest advertised rate. Requests for the highest loan amount may result in an APR higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest rate.

*Trustpilot TrustScore as of June 2020. Best Egg loans are unsecured personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC. “Best Egg” is a trademark of Marlette Funding, LLC. All uses of “Best Egg” refer to “the Best Egg personal loan” and/or “Best Egg on behalf of Cross River Bank, as originator of the Best Egg personal loan,” as applicable. The term, amount and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000–$35,000. Residents of Massachusetts have a minimum loan amount of $6,500 ; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $50,000. Annual Percentage Rates (APRs) range from 5.99%–29.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%–6.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR.

To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you.

(5172 Reviews)

10.68% - 35.89%

36 or 60

months

Not specified

SEE OFFERS Secured

on LendingTree’s secure website

(2679 Reviews)

9.95% - 35.99%^*

24 to 60^**

months

580

Minimum Credit Score

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

*If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.

**Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33.

Based on the responses from 7,302 customers in a survey of 140,258 newly funded customers, conducted from August 1, 2018 - August 1, 2019, 95.11% of customers stated that they were either extremely satisfied or satisfied with Avant. 4/5 Customers would recommend us. Avant branded credit products are issued by WebBank, member FDIC.

(4991 Reviews)

18.00% - 35.99%

24 to 60

months

Not specified

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $400. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes.

Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.

Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Florida: $8,000. Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. Texas: $8,000. West Virginia: $14,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

6.49% - 17.99%

60

months

Not specified

SEE DETAILS Secured

on PenFed Credit Union’s secure website

(2905 Reviews)

8.27% - 35.99%

36 or 60

months

600

Minimum Credit Score

SEE OFFERS Secured

on LendingTree’s secure website

Bank personal loans

In some situations, banks are the lenders that may offer some of the best interest rates on the market, but that’s not always the case with personal loans. Because many personal loans are unsecured, and therefore riskier, banks tend to charge higher rates than credit unions.

As with other types of loans, bank loans generally are geared more toward people with good credit — scores of 680 and above — and the better your credit, the better your interest rate. On the plus side, banks tend to offer higher borrowing limits if you need more money.

• Average rates*: 6.99% to 20.24%
• Term length*: 12 to 84 months
• Borrowing limits*: Up to $100,000

Credit union personal loans

Credit unions offer some of the lowest interest rates for personal loans, and will even approve loans for people with credit scores under 600. Unlike most banks, credit unions are nonprofit, so any profits they make tend to benefit their members in the form of better interest rates or lower fees. To apply for a loan, you’ll need to join the credit union and meet all the requirements for membership.

• Average rates*: 6.49% to 18%
• Term length*: 12 to 84 months
• Borrowing limits*: Up to $50,000

How to compare personal loan offers

When you’re looking at personal loan offers, you should know how much the loan will truly cost you, including the interest rate, the length of the loan and any fees that you’ll have to pay (an origination fee, for example). You’ll likely get better interest rates if your credit score is high and/or you have collateral to secure the loan. However, most personal loans don’t require collateral.

• APR: In most cases, the better your credit score (740 and above is ideal), the lower the interest rate you’ll receive for a personal loan. Do some comparison shopping to find the loans with your lowest interest rates and best terms.
• Term length: Most personal loans will have a term between 24 and 60 months, with some as short as 12 months or as long as 84 months. Think about how long you’ll realistically need to repay the loan and how long you want to owe the debt. If you want the option of repaying the loan early, find out if there are prepayment penalties.
• Fees: The APR isn’t the only factor that determines how much the loan will cost you. Fees can really make a difference. A common fee charged for personal loans is an origination fee, which is charged to cover the cost of processing the loan. Some origination fees are flat amounts while others are a percentage of the amount borrowed.
• Secured vs. unsecured: A secured loan means you put down collateral such as property to back the loan in case you default. An unsecured loan means there’s no specific asset tied to the loan. Secured loans will have lower interest rates, but you risk losing your collateral — whether it’s your house, car or savings account — if you default on the loan.

A personal loan isn’t your only option, and may not be your best option, depending on why you need the money and how you want to pay it back. There are other loans that accomplish similar goals. The important things to know are how much interest you’ll end up paying, how long you’ll be given to repay the loan, what kind of expenses the loan financing can be used toward and what happens if you miss a payment or default on the loan.

1. 0% Intro APR balance transfer credit card

Many credit cards will offer a 0% APR introductory balance transfer offer. This offer, typically lasting anywhere from 6 to 21 months, means you won’t pay interest on your debt for that period of time. Make sure to find out if you’ll be charged balance transfer fees and what the card’s interest rate will be after the introductory period. Take a look at credit cards with introductory 0% APR balance transfer offers at MagnifyMoney’s marketplace

Pros

• You can consolidate your debt
• You can potentially move to a credit card with better terms
• You can pay down debt faster
• You won’t pay interest for several months

Cons

• You’ll typically need good credit to qualify
• You may be charged a balance transfer fee
• You could end up with a higher interest rate

2. Home equity loan

A home equity loan is a second mortgage that borrows against the equity you’ve built in your home. Like a personal loan, you receive the funding in a lump sum and the loan comes with a fixed interest rate.

Pros

• You can get lower interest rates because your equity in the home secures the loan
• Easier to qualify for if you have poor credit

Cons

• If you can’t repay the loan, you risk losing your home

3. Home equity line of credit (HELOC)

A home equity line of credit (HELOC) also involves borrowing against your home’s equity, but in this case, you’re approved for a certain amount of credit that you can draw from. But you only need to repay, and only pay interest on, the amount you draw. As with a home equity loan, your house is the collateral for the loan.

Pros

• You can get lower interest rates because your equity in the home secures the loan
• Easier to qualify for if you have poor credit
• You only pay interest on the amount you draw from the line of credit

Cons

• You may be charged several types of fees such as transaction fees, maintenance fees and closing fees
• If you can’t repay the loan, you risk losing your home
• Some lines have variable interest rates, meaning your interest rate could go up

4. Peer to peer lending

Banks, credit unions and online lenders aren’t the only financing games in town. Peer to peer lending is when an individual or hedge fund is matched to someone looking for a loan, either through a company or a website. These loans are very similar to personal loans and tend to have competitive interest rates.

Pros

• Potential for lower interest rates
• Easy application process

Cons

• May take longer for approval than from bank or credit union
• You’ll need to do some legwork to make sure you’re working with a reputable company

Other loans offered by Bank of America

Although Bank of America doesn’t offer personal loans, they do offer other loans that can be used to pay medical expenses, consolidate debt, make home improvements or fund a business. Bank of America’s financing options include a credit card with a 0% percent introductory APR offer for 15 months, a home equity line of credit and an auto loan.

*Accurate as of the date of publishing