Bank of America signature loans are designed for people who need to borrow 800 dollars fast, but are not able to provide any collateral – such as students and tenants. You only need to sign on the loan agreement form and promise to pay back the loan and fees. This sounds like a lot of risk for the bank, but they can determine whether you are a good borrower from records in your credit report.
A bank signature loan is also known as good faith loans, unsecured loans, uncollateralized loans, and non asset backed loans etc. They are referring to the same type of high risk loans with no collateral needed. While it is more convenient, borrowers have to pay higher interest rates to compensate the lenders on such products.
The interest rates for online signature loans start from 10% if you have acceptable credit. If you have bad credit, you may need to pay 16% APR or more. Signature loans are unsecured, so you do not have to put down any collateral to secure the loan. This is still cheaper compared to cash advance from credit cards or other online unsecured signature loans.
The first thing you notice about the interest rates for signature loans is they are very high. This is because a large percentage of borrowers do not eventually pay back the borrowed money and banks and lenders have to make a loss on some accounts. Generally, the people who are at risk of defaulting on loans are those with bad credit and have very high debts compared to their income. It is because of some irresponsible borrowers that the interest rates for unsecured loans are so high.
Of course, you can get cheaper loans elsewhere if you have collateral or high FICO scores. It is because you cannot get a cheap loan, which is why only lenders for long term loans can help. To qualify for a Bank of America signature loan, you need to be sure your FICO score is high enough even though it does not have to be perfect. As long as you have not be always late in your credit card payments, mortgage or car loan installments, it should be good enough for a signature loan. However, those who have filed for bankruptcy or subject to home foreclosure are not likely to get approved for long term signature installment loans.
For those with slightly poor credit around 550, you can try to quickly improve your FICO score in order to pay lower interest rates on personal loans. For example, try to pay off any small debts you currently owe and you can easily raise your score by 10 points or more. Remember that every extra credit point helps to reduce the cost of a Bank of America signature loan. Alternatively, ask a friend to be your signature loan co-signer.
If you want a $9000 signature loan for long term, you may want to consider using collateral to secure the loan instead. This will greatly reduce the interest fees especially when you use a car title, home, insurance policy with cash value, or your business as collateral. You will be allowed to borrow more money on secured long dead line installment loans, usually up to 75% of the collateral’s market value.
For students who need to borrow money to pay for college expenses, check out Pell grants instead of personal loans. For home buyers, Bank of America home loans are very popular because of the competitive rates and easy home mortgage loan requirements compared to other lenders. If you have bad credit, you can still get a Bank of America mortgage through the FHA loan program. For those with trouble paying your loans or credit card debts, check out Bank of America unsecured debt consolidation loans which can restructure your entire debts so that you can pay them efficiently.
Note that banks will screen your credit history and reports for any type of loans and determines whether you get turned down. Hence, we do not suggest getting large 3500 loans when you have bad credit without considering the magnitude of the purpose.