Bank Of America Personal Loan [Best Alternatives]

The Bank of America is a multinational bank and financial services company headquartered in Charlotte, North Carolina. The institution started its operations in San Francisco. It took its present form after its acquisition by the Nations Bank of Charlotte in 1998. There are various products you can get from the company. These include bank accounts, payment cards, and loans. You will learn about the Bank of America personal loan alternatives later.

A personal loan allows you to sort out your emergency issues, such as fixing your roof, repainting a house, traveling, buying food, paying hospital bills, etc. A personal loan allows flexible use, offers short- to moderate-term repayment options, and has relatively quick funding. All financial institutions offer personal loans to use for your various needs. 

You can utilize a personal loan to consolidate high-interest debts. Most banks and credit unions allow debt consolidation for easy repayment. Paying debts in one basket is cheaper than when paying different lenders. You can also utilize a personal loan to start a business. If you plan to start a fruit parlor, food joint, boutique, or other small to medium business, such credit will help. 

Application Process for a personal loan

Most financial companies allow you to apply for a loan online. All you need to do is to log into your account online and begin the application. Before applying, you need the following details. 

1. Two forms of personal identification. These include a driver’s license, Social Security card, certificate of citizenship, state-issued identification card, Military ID, birth certificate, or passport.  
2. Proof of income. Some needed documents include W-2s, 1099s, bank statements, pay stubs, and tax returns.  
3. Employer’s information includes your manager’s name, company name, and phone number.  
4. Proof of residence. A utility bill having your name and address, lease agreement, proof of insurance, property tax receipt, mortgage statement, or voter registration card can work.

When applying for your credit, it is vital to follow the steps below.

1. Determine the amount of loan you can pay comfortably. You should never get a loan that you cannot pay. Making such a mistake will make you default on the loan, damaging your credit score. You may even lose some property. 
2. Check your scores. Credit scores help you determine the loan amount you can get from your bank or credit union. That helps you to plan effectively.
3. Consider some options. You may need a consignor to help you get a higher limit if you have poor scores. 
4. Decide on the loan type. There are various types of personal loans you can get today. You can choose a credit card refinancing loan, debt consolidation loan, home improvement loan, medical loan, emergency loan, and so on. 
5. Look for lenders with the best rates.
6. Get the best lender and apply.
7. Provide the necessary documentation.
8. Accept your loan and start paying. 

Bank of America personal loan alternatives

The Bank of America is not the best lender you can find since we have others who can still give you a loan with a friendly rate. The following are the best alternatives you can use to get credit. 

1. Online personal loan lenders

Online lenders give you loans when you apply through their websites. They offer an alternative to traditional banks that require a lot of paperwork when making your application. You only need your smartphone to make an application. Examples of such lenders include Rocket Loans, Discover, and Upgrade.

2. Traditional banks

Other traditional banks such as CitiBank, Wells Fargo, JPMorgan Chase, and many others can serve as the alternative to the Bank of America when you want a personal loan. For example, Citi Bank can give you loans ranging from $2,000 to $30,000 with fixed rates of 9.99% – 23.99% APR. 

3. Credit unions

We have numerous credit unions in the country offering personal loans. These include America First Credit Union, Golden 1 Credit Union, Alliant Credit Union, First Technology Federal Credit Union, BECU, SchoolsFirst Federal Credit Union, and Navy Federal Credit Unions, among others. Since the institutions are member-owned, the interest rates are usually friendly. The payment terms are also flexible.  

4. Peer-to-peer lending

Instead of getting a personal loan from the Bank of America and paying huge rates, you can opt to get one from your friends. By the way, most friends will not charge you any interest on top, and thus you will pay the amount borrowed. If an individual charges you interest for your loan, you may even pay a small amount. 

5. Secured loan lenders

Secured loans require some collateral for security when borrowing. A lender may request collateral for large loans for various reasons. That is usually if your credit scores are below the required ones. The loans attract low interest since there are lower risks associated with borrowing. If you want to build your credit, the loans can be a good alternative from the Bank of America personal loans or any other bank. 

6. Wells Fargo: Secured and unsecured personal loans

Wells Fargo is a large bank and among the largest financial institutions in the United States. It can thus act as an alternative to the Bank of America if you want a personal loan. The company has both secured and unsecured personal loans. You can get a personal loan from the institution with rates as low as 5.74% APR to consolidate your debt, pay for your home improvements, pay for your medical bills or make a significant purchase.

7. SoFi: Extra perks

SoFi can offer you personal loans and serve as an alternative to the Bank of America. The financial company allows you to access your account online using your smartphone, computer, or tablet. You can get various perks from the bank, including $300 plus getting your paycheck up to 2 days earlier than traditional banks when you set up direct deposit. You also get a chance to track your credit score for free and receive up to $10 if you are a new SoFi member without an existing SoFi account.

When you invite your friends to join, you also get $15 towards investing, saving, or borrowing with them. Your friend also gets $15.

8. LightStream: Low-interest rates

Lightstream gives you relatively cheap loans that you can pay with ease. The maximum APR for a LightStream personal loan is 20.49%. The loan terms can range from 24 – 144 months, depending on the type of the loan. You can apply for your loan online using a smartphone or computer. You do not need to waste time walking to a branch. To apply for your personal loan, you only need to select your loan purpose, enter the desired amount, and tap the “See my Rate” tab to get started. 

Generally, you only need to apply online, accept the loan agreement, then receive your loan to spend on your needs.

9. Avant: Loans for people with less-than-perfect credit

Avant is an online lender offering personal loans in the United States. Interestingly, the loan APRs do not exceed 36%, the maximum rate most consumer advocates prefer. Despite charging late and origination fees, their rates are consistent with most bad-credit lenders. It is among the best companies to get a loan with bad credit. The company offers personal loans for fair and bad credit (689 or lower score).