What Loans Bank of America Offers
As one of the biggest U.S. banks, Bank of America has plenty of money to lend to customers. The company offers the following lending services:
Credit cards are one of the most common types of lending in the United States. The lender gives you a credit limit, which is the maximum amount they are willing to lend you. You can then use the credit card to make purchases when you shop.
Because there is no asset to back up a credit card, interest rates tend to be very high, often exceeding 20%. You should only use a credit card when you know you can pay the bill in full, otherwise, you’ll wind up paying huge interest charges.
Bank of America is one of the largest U.S. credit card issuers — part of the reason is that some of its credit cards are very popular, including its travel and cashback credit cards.
It also offers various credit cards for people that are building credit, including student cards and secured credit cards.
If you were looking for a personal loan for debt consolidation or a major purchase, the BankAmericard is a solid choice because it has a great introductory rate that applies to both balance transfers and purchases.
A mortgage is a loan that can be used to purchase land or a house. Mortgages are often the largest loan that a person will ever take out, so the loan can last for up to thirty years.
The two main types of mortgages are fixed-rate and adjustable-rate (ARM) mortgages.
Fixed-rate mortgages have a single interest rate throughout the life of the loan. When you sign the contract, you know the interest rate you’ll be charged today, as well as the interest rate you’ll be charged thirty years from now.
Fixed-rate mortgages offer plenty of stability to home-buyers. Adjustable-rate mortgages allow the lender to change the interest rate every so often. For example, a 5/1 ARM has a fixed rate for the first five years.
After that, the rate can change once every year. The benefit of ARMs is that the initial rate is usually much lower than the rate on a fixed-rate mortgage.
Home Equity Lines of Credit (HELOCs)
HELOCs let you turn some of the equity you’ve built into your home into cash. Much like a credit card, your lender will give you a credit limit, which is the most they’re willing to lend to you.
You can go to the lender and request the cash from your HELOC, which will be deposited into your checking account. Each month you’ll be billed for whatever your HELOC’s balance is, plus interest.
If you haven’t taken money from your HELOC, you won’t be billed. It serves as a line of credit that you have the option of using, but are not obligated to.
HELOC interest rates are closer to mortgage rates than credit card rates because your house serves as collateral. That makes them a good way to consolidate other loans or fund home improvements.
Auto loans are loans taken out for the purpose of purchasing a car.
The interest rate varies depending on the cost, make, model year, and whether the car is new or used. If you default on your payments, the bank has the right to repossess your vehicle.
Business Credit Lines
Bank of America offers business credit lines of $10,000 to $100,000. You qualify if you’ve been in business for at least two years and made at least $100,000 in sales last year.
You can use the business credit line to provide liquidity when you need to pay bills or your employees and are waiting on customers to pay you.
Business Term Loans
A business term loan gives you a one-time lump sum of cash which you can pay off over the next one to five years. Qualification requirements are the same as the requirements for a business credit line. These loans are best for making major purchases that will help grow your business.
Secured Business Lines of Credit and Term Loans
If you need a credit line or term loan larger than the maximums offered by Bank of America’s unsecured loans, you can apply for a secured loan. Requirements are stricter: you must have made $250,000 in sales in the last year.
These loans are backed by a lien on your company’s assets so Bank of America has a better chance of getting paid if you default on the loan. These loans are your best bet if your business has significant cash needs.
Equipment loans are designed to help you purchase the expensive equipment that you need to run your business.
Whether you need packing machines, conveyor belts, printing presses, or a delivery truck, this loan can help you get your business rolling.
Personal loans can be a necessary tool in handling the expensive parts of life. Bank of America may not offer them, but that doesn’t mean you don’t have options.
No matter if you’re looking to compare lenders easily, are interested in a wider range of loan terms or want to try out p2p lending, a variety of alternative providers can help you get the financing you need.
We hope this article has been helpful to you. Please share it with anyone who you think will appreciate the information!