Bank of America Personal Loan Alternatives
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Updated on Friday, December 14, 2018

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.
Alternatives to Bank of America personal loans
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.
APR
As low as 2.49%
Credit Req.
Minimum 500 FICO®
Terms
24 to 60
months
Origination Fee
Varies
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.
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
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:
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.
4 alternatives to a personal 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