Bank of America offers several types of loans, and which one you can get depends on what you need the money for and what you own

Bank of America makes loans for specific purposes: a home (mortgage), a car (auto loan), a line of credit against your savings or home equity, or a personal loan for other needs. You cannot walk in and borrow money for any reason you choose. The bank decides which loan type fits your situation, and you must meet their requirements for that type.

The basic process is the same for all of them: you tell the bank what you need, they look at your credit history and income, they decide whether to lend and at what interest rate, and if you agree, you sign papers and the money arrives. The whole thing usually takes a few days to a few weeks depending on the loan type.

Your credit score matters most. If you have never borrowed before or have missed payments in the past, Bank of America may decline you or charge you a higher interest rate. If you have a checking or savings account with them already, that helps slightly, but it does not override a poor credit history.

Key Takeaways

  • Bank of America offers mortgages for home purchases, auto loans for vehicles, personal loans for other needs, and home equity lines of credit if you own a home.
  • Your credit score is the main factor the bank uses to decide whether to lend to you and what interest rate to charge.
  • You will need to provide proof of income (recent pay stubs or tax returns), a government ID, and details about what you are borrowing for.
  • You can start the process online, by phone, or in person at a branch, and most loans take one to three weeks from process to funding.
  • If you are denied, you can ask the bank why and try again later, or explore loans from credit unions or other banks with different lending standards.

Personal loans for any purpose

A personal loan is unsecured, meaning you do not have to own anything to get it — the bank is lending based on your promise to repay and your credit history. Bank of America calls theirs a "personal loan" and advertises them for debt consolidation, home improvement, or other expenses.

The amount you can borrow ranges, but typically starts at $1,000 and goes up to $100,000 depending on your income and credit. The interest rate depends on your credit score: someone with excellent credit might pay 6% to 8%, while someone with fair credit might pay 18% to 24% or higher. You repay over a fixed period, usually two to seven years, in equal monthly payments.

To explore, you will need your Social Security number, a government ID, recent pay stubs or tax returns showing your income, and your current address. The bank will pull your credit report without your permission — this is called a hard inquiry and it temporarily lowers your credit score by a few points. You can explore online at bankofamerica.com, by phone at 1-800-933-6262, or at a branch.

Auto loans if you are buying a car

An auto loan is secured by the car itself, meaning if you stop paying, the bank can take the car back. Because the bank has this protection, auto loans usually have lower interest rates than personal loans — often 4% to 10% depending on your credit and the age of the car.

Bank of America finances new cars and used cars up to a certain age (usually 10 years old, but this varies). You can borrow up to the full price of the car, though the bank may require you to put down some of your own money first, especially if you have weaker credit. You repay over three to seven years in monthly payments.

You will need the same documents as a personal loan, plus details about the car: the vehicle identification number (VIN), the price, and whether you are trading in another car. If you are buying from a dealer, the dealer can sometimes help you explore. If you are buying from a private seller, you explore first, get approved for an amount, and then use that to negotiate the purchase.

Mortgages if you are buying a home

A mortgage is a loan to buy a house or other real estate. The property itself secures the loan, so if you stop paying, the bank can foreclose and take the house. Mortgages are the largest loans most people ever take, often $200,000 to $500,000 or more, and they last 15 to 30 years.

Interest rates on mortgages are lower than on personal or auto loans because the bank's risk is lower — they own the house until you pay off the loan. Your credit score, income, and how much money you have saved for a down payment all affect whether you are approved and what rate you get.

The mortgage process is longer and more complex than other loans. You will need pay stubs, tax returns, bank statements, and proof of employment. The bank will order an appraisal of the house to make sure it is worth what you are paying. The whole process usually takes 30 to 45 days. Bank of America has mortgage specialists you can talk to in person or by phone, or you can start online.

Home equity lines of credit if you own a home

If you own a home and have paid down some of the mortgage, you can borrow against that equity — the difference between what your home is worth and what you still owe. Bank of America calls this a home equity line of credit or HELOC. It works like a credit card: you can borrow up to a limit, pay it back, and borrow again.

HELOCs usually have lower interest rates than personal loans because your home secures the debt. The interest rate is often variable, meaning it changes with the market, so your monthly payment can go up or down. You typically have a draw period (usually 10 years) when you can borrow, then a repayment period (usually 20 years) when you pay back what you borrowed.

To may have access to, you need to own the home, have paid down enough of the mortgage to have equity, and have decent credit. You will need the same income and identity documents as other loans, plus information about your mortgage and home value.

What happens after you explore

After you submit your process, Bank of America will pull your credit report and verify your income. For personal and auto loans, this usually takes a few days to a week. For mortgages, it takes longer because of the appraisal and title search.

The bank will then send you a decision: approved, approved with conditions (like a higher down payment), or denied. If you are approved, you will receive loan documents to sign. Read these carefully — they show the interest rate, monthly payment, and all the terms. You have the right to take time to review them before signing.

Once you sign, the money is usually deposited within a few business days. For mortgages, the money goes to the seller's attorney or title company, not to you directly. For auto loans, it goes to the dealer or seller. For personal loans and HELOCs, it goes to your Bank of America account or a check is mailed to you.

If Bank of America denies you

If you are denied, the bank must tell you why in writing. Common reasons include a low credit score, insufficient income, too much existing debt, or a history of missed payments. You can ask the bank to reconsider, especially if something on your credit report is wrong.

You can also wait and explore again later — your credit score improves over time as you pay bills on time. In the meantime, you might explore loans from a credit union (which often has looser lending standards) or another bank. Some people with weaker credit use a co-signer — someone with better credit who promises to repay if you do not — though this puts that person at risk.

Frequently Asked Questions

Do I need to have a Bank of America checking account to get a loan?

No. Having an account with them may help slightly, but it is not required. Your credit score and income are what matter most. You can explore for a loan even if you bank elsewhere.

What is the difference between a personal loan and a credit card?

A personal loan gives you a lump sum of money upfront that you repay in fixed monthly payments over a set time. A credit card gives you a limit you can borrow up to repeatedly, and you can pay back as much or as little as you want each month (though interest accrues on the balance). Personal loans usually have lower interest rates.

How long does it take to get the money after I am approved?

For personal loans and auto loans, usually three to five business days after you sign the documents. For mortgages, it can take longer because of closing procedures. For HELOCs, it depends on whether you are drawing money when ready or setting up the line for later use.

Can I pay off a Bank of America loan early without a penalty?

Most Bank of America loans allow early repayment without penalty, but check your loan documents to be sure. Paying early saves you interest, but some older loans or special promotions may have restrictions.

What if my income is irregular or I am self-employed?

Bank of America will ask for two years of tax returns to verify your income. Self-employed people are approved regularly, but the bank needs to see consistent income over time. If your income is very new or has dropped significantly, approval may be harder.