Bank of America Personal Loans for Bad Credit

bank of america personal loan for bad credit

Bad credit personal loans can assist troubled borrowers, but does Bank of America offer the same? Why can’t we try to find a solution rather than seeking a direct answer to this.


Here is a typical situation you might be facing:

  • You need money.
  • You have nothing for collateral.
  • You have a credit score lower than 620.
  • You want to get it from Bank of America.

In other words, you have less than perfect credit and need an unsecured personal loan from Bank of America.

To tell you the truth, it will really be hard if not impossible to find a solution that meets all the four criteria presented above.

It becomes easier if you are willing to compromise.

Find a way to avoid the need of money completely or go for a secured loan. You can also wait until your credit improves or try a different bank.

Not willing to compromise!

Well, here’s the trickiest part.

You must have a checking account with overdraft facility at Bank of America. Use your debit card to pay in emergency even if you have a zero balance in your account. The bank will charge a flat fee for the service.

Existing account holders can consider an overdraft line of credit to avoid overdraft fees. They can also link a savings account to a checking account or ask a bank representative for a personal loan with bad credit.

It doesn’t look like a loan, huh?

But it does solve your problem, doesn’t it? Remember, you have less than perfect credit score.

Bad Credit and Personal Loans

Your credit score is below 620, right?

This reflects how irresponsible you have been with your financial matters. Unfortunately, lenders don’t like borrowers with a bad credit history. If you have not been regular with your past payments, how do you expect to be the same in future without inflicting a big change in your financial behavior?

Don’t repeat the mistake again. Bad credit loans are expensive and it is not easy to pay them off.

Be realistic. Be determined to change. Look for alternatives instead of falling into the debt trap.

Here are some possible steps.

  • Avoid the loan altogether if possible
  • Choose an alternative instead of seeking a loan
  • Postpone your requirement and wait for the credit to improve

For more information, you can read our detailed guide on how to obtain a bad credit loan.

Personal Loans at Bank of America

If you go by the definition of personal loan, it encompasses everything from home equity loans, auto loans, to mortgages. Bank of America has to offer a wide range of these loan options.

  • Cash out Refinance
  • Home Equity Loans
  • Home Equity Line of Credit
  • Auto Loans
  • 0% Credit Card
  • Small Business Loans

Obviously, most of the above are instances of secured personal loans.

What about unsecured personal loans?

These come handy when you need money urgently. Also, unsecured loans get approved faster than secured loans since the underwriter has nothing to assess for collateral. Instead, the borrower’s credit profile, income and employment status are verified.

Bank of America offers a variety of mortgages and loan options, but it perplexes borrowers by not providing any information regarding its unsecured personal loan options. This is the case with many other big banks, including Chase and Capital One.

Do you know why?

Unsecured personal loans fall under subprime loans, which gained notoriety in the wake of economic downturn. Big banks see too much risk in this business, and so they seem to have pulled back from this loan segment altogether.

Bank of America may offer an unsecured personal loan if you can somehow convince them that you are going to pay off. The bank has no objection if you can help it minimize the risk.

How do you do so?

  • Use collateral
  • Build trust
  • Show them that you can pay back – bring a cosigner, high income, permanent employment,
  • Be ready to improve become responsible

No Personal Loans – No Problem

Personal loans are not final solutions, but ways to meet certain financial goals. You do not seek a loan just for the sake of it. The purpose is to meet certain financial obligations. A personal loan is typically used for any of the following purposes.


While you can’t avoid an event like a wedding ceremony, you can certainly avoid several unnecessary expenses associated with it. You can follow some practical steps to cut the costs of a wedding and still make your life’s most important day the most memorable.


It is still a better idea to avoid travel if your budget doesn’t allow. However, vacationers, honeymooners or people on holidays can use international credit cards or apply at institutions like Traveler Financial for quick funds.

Medical Bills

These are unavoidable expenses and you must obtain immediate financial help from banks or otherwise. Most lenders, including Bank of America, don’t offer medical loans, but some specialized institutions do. You can, however, use the proceeds of a personal loan to pay medical bills or get treatment immediately.


Federal student loans and grants are easy to obtain. Sometimes, you need additional funds, which make you look for lenders offering private student loans. It is advisable not to overdo student loans and try to look for an alternative, such as to work part time or borrow from family or friends.

Utility Bills

They are among the necessities. Non-payment of certain utility bills can cause you to pay penalties, face discontinuation of services or even land you in legal trouble. Personal loans can work great and they are a sensible option even at a higher interest rate. Survey bad credit lenders and shop for the best offer.


Impulse buying is a big no-no when you are facing financial emergencies. Cut off your credit cards and avoid going to malls. Instead, find ways to explore creativity and create things at home.

To Sum up

It is important to distinguish between what you require and what you desire. Seek a personal loan only when you need something and not for something that you want out of desire.

People with bad credit must be extra careful with their financial decisions.

Not all loans are available at big financial institutions, including Bank of America.

Though there may be a number of personal loan alternatives, such as peer-to-peer loans, borrowing from relatives and pawn shops, you are better off avoiding any kind of loans altogether.

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