This article will give you insights into the various kinds of Bank of America loans that can be accessed through the bank.
Bank of America is among the biggest lenders in the United States for secured loans. It is among the largest banks in America. It is important to note that Bank of America does not offer personal loans (Personal loans in this context refers to Loans used for renovating ones home, getting that dream wedding and etc).
Types of Bank of America Loans Being Offered
- Credit cards
- Auto loans
- Business credit Loans
- Equipment loans
- Secured business lines of credit
- Business terms loans
Credit Cards Loan
Credit cards are the most common among all credit loans. It usually states the maximum among you are allowed to make purchases when shopping. The credit card loans do not require an asset as collateral and should be used only when you are assured that you can pay up in only a small amount of time. This is because this type of loans usually attracts high-interest rates. The Bank of America offers different types of credit cards: Student cards, travel credit cards, Secured credit cards, cash back credits cards, Building credit cards.
A mortgage is a loan used in purchasing a land or house. This type of loan comes with a period of up to 30 years interval for payments. There are two types of Mortgage loans accessed by the Bank of America. They include fixed rate and adjustable rate mortgages.
Fixed rate mortgages incur only one single interest rate and are usually more stable as you can calculate your interest rate for 30 years coming very easily.
Adjustable rate mortgages allow the lender to change the interests from time to time but once every year.
Auto loans are loans used for the purpose of purchasing a car. There is interest rate for this type of loan. Interest rate varies according to cost, model or makes of the car. You may apply here.
Home Equity Line of Credits
This gives some kind of equity that can be converted to cash. It usually requires an asset as collateral and it gives you a line of credit and this kind of credit gives you the option of whether using it or not as it is not an obligation
Also read: Current Account Meaning And How it Works
Business Credit Lines
Bank of America also offers business credit loans of $10,000 to $100,000. To qualify for this type of Loans, you need to have been in business for at least 2 years and must have made $100,000 in sales in the previous year. This loan is usually used to provide liquidity to Lines business venture.
Business Terms Loans
Business Term Loans offered by Bank of America gives the user a one time top up on cash which can be paid up in a space of about one to five years. The requirements for accessing this loan is the same as business credit lines.
Secured Business Lines of Credit and Term Loans
Bank of America offers this kind of loans specifically for larger amounts other than those other loans above requirements for this loans are much more strict. You need to have made at least $250,000 in sales in the last year. The loans are also required to be backed up by company assets.
Bank of America offers Equipment loans designed to help in purchasing expensive equipment needed to run any business
How to Apply for Bank of America Loans
Bank of America runs a very strict procedural. It is important to note that Bank of America does not offer an online loan application process. To qualify for any loan, you must have a high credit score; the higher the score, the better. But note that the bank does take a longer time.
To begin the procedure for this loan, you have to visit any of their branches to obtain an application document.
The next step is to submit the necessary documents alongside the completed forms. Some of the documents required to obtain a loan from Bank of America include:
- The previous years’ tax returns
- Statement of accounts for the last two years
- Two most recent stubs
Benefits of taking a loan from Bank of America
There are so many benefits of getting a loan from the Bank of America:
- Customer satisfaction: At this bank, customer satisfaction is highly important. There are so many platforms to securely inquire about your loan account. An added advantage is the live chat option (See the various ways to contact Bank of America customer service).
- Convenience: You can check your loan activity via online platforms. You can also check your status of the application via the Bank of America websites.
- Repayment: You can set your repayment style that soothes your needs once your application is accepted. There are many different repayment methods available based on the number of monthly payments you can afford.
Bank of America is a highly reputable bank that puts customers first. With its unique set of banking options, you can secure a loan for your specific needs.