Bank Of America Auto Loan Application Requirements
If youre ready to apply for a car loan, youll need some standard information about your finances:
- Personal information like your home address, date of birth, citizenship, and Social Security number
- Income information and information about your housing situation
- Your desired loan amount and information on the car that youre buying, if youve already found a car
Loan applicants must be at least 18 years old and U.S. citizens, resident aliens, or non-resident aliens.
This loan approval includes a 30-day rate lock, so you have plenty of time to shop and find the vehicle thats right for you. If youre trying to decide the total loan amount you can afford or what monthly payments work for you, Bank of Americas auto loan calculator can help. Y
You can see how different loan amounts affect your monthly payments based on the interest rate that youre pre-approved to receive. And if you want to refinance a loan, the auto loan refinance calculator can help you determine your potential savings.
Who Is The Bank Of America Corporation
The Bank of America Corporation can trace its roots back to when Amadeo Giannini founded the Bank of Italy in 1904, headquartered in San Francisco.
Through many mergers and acquisitions, BofA has become one of the largest financial institutions.
Today BofA is the 13th largest company in the world and has over 4,600 branches, 15,900 ATMs, and 205,000 employees.
They offer new, used, and refinancing for automobiles under ten years old with immensely customer-friendly car loan terms of 48 to 72 months.
Bank Of America Auto Purchase Refinance And Lease Buyout Loans: 2022 Review
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Auto loan reviews
Auto lease buyout loan
The bottom line:
Best for borrowers who prefer working with a large, well-established bank that offers a rate discount based on high balances.
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Can You Sell A Car With A Loan
It is possible to sell a vehicle when you still have a loan, but it adds a few extra steps. There are a few different options in this situation. One option is to pay off the loan in full before selling the vehicle, which involves contacting your lender to determine your payoff amount. After paying off the loan, your lender will release the lien.
You can sell a vehicle that’s financed without paying it off by selling it to a private buyer or trading it in with a dealer.
What To Know When Applying For An Auto Loan
While car loans usually have fixed interest rates and loan terms, they can often be negotiated, depending on your lender. Your loan rate will generally depend upon your — the higher your credit score, the lower your annual percentage rate. A higher credit score may also give you access to a larger loan amount or more favorable repayment terms.
Next, you should consider loan terms. Let’s say you qualify for a 2.5% APR loan. You’ll pay less interest over time with a shorter term loan, but your monthly payments will be higher. Similarly, you’ll pay more in interest over time with a longer loan term, but your monthly payments will be lower. Consider your budget and financial goals to determine which loan term will work best for you.
As you consider lenders, find out if they offer a preapproval process. Preapproval allows you to see the rates you qualify for without a hard inquiry — when a creditor pulls your credit history — which can cause your credit score to slightly dip. It also allows you to review options upfront without having to commit to a particular lender.
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Bank Of America Auto Loans Review
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Bank of America is a comprehensive, global financial institution. The company traces its roots back to 1784, and those institutions that eventually grew into the brand today had an important impact on the growth of the United States and modern financial services.
For example, one of its heritage banks helped finance the population boom and rebuilding of Chicago in 1850 after the Great Fire. Bank of America also created the first credit card, which eventually became Visa. So, you know you are doing business with a reputable financial institution that has a long history of service to its customers.
This Bank of America Auto Loans review will get you up to speed on everything you need to know.
How The Application Works
Start your application by visiting the BofA website and navigating to the auto loans page. From here, you can apply with or without information about your potential purchase and review the terms of your application before you submit.
Bank of America will review your application and give you an approval decision. If approved, you can start finalizing your application or searching for your next car.
Your loan approval and interest rate are locked in for 30 days from the date you submit your original loan. To access your loan application, log in to your online account. You can access your saved application for 30 days.
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Best Bank For Refinancing Your Bank Of America Loan
Best Auto Loan Refinance Companies of 2021
- Best for Great Credit: Credit Unions
- Best for Checking Rates Without Impacting Your Credit: Capital One.
- Best Trusted Name: Bank of America, Chase or WellsFargo.
- Best for The Most Options: WithClutch.
- Best for Members of the Military: USAA or Navy Federal CU.
- Best for Peer-to-Peer Loans: LendingClub although not recommendable.
- Digital Credit Union and PenFed.
Consider A Down Payment Is Key
It might be difficult to have extra cash on hand when youre trying to pay bills to improve your score, but even having a few hundred dollars to put down for a car can help the lender approve you for financing and lower the upfront costs.
The ability to put a down paymentan upfront partial paymenton a vehicle signals to the dealer or seller that you are serious. Depending on how much you can put down, it can help reduce the overall size of the loan, upfront taxes and fees, your monthly payment, the length of the loan and/or the interest rate.
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Bank Of America Auto Loan Structures
When a dealer is sending a deal to them, they are looking for the loan to value to be in the 110% range plus:
- Tax, Title, License
- Disability Insurance.
An Example: If a vehicle had a $10,000 wholesale blue book value, then B of A would be willing to loan $11,000 , plus the extras from above.
This is a tougher and more limited structure than they used to offer and can make it hard to do a no money down loan.
This is especially true if there is any negative equity to be rolled into the new loan.
B of A is also limiting some of their advances on select vehicles like trucks and SUV’s. So be prepared to put some money down.
They are also limiting their max finance term to 75 months and this is only available for new and near new vehicles. The 75 month term is only offered to those with the larger 700+ credit scores. Other restrictions may apply, i.e. advance %, overall credit history, etc.
Bank Of America Auto Loan Rates And Fees
Multiple factors will affect your interest rate, including your credit score and income. As of the writing of this article, Bank of America car loan rates start at:
- New car dealer loan: 2.59% APR
- Used car dealer loan: 2.79% APR
- Auto loan refinancing: 3.49% APR
Bank of America Preferred Rewards members can get an interest rate discount on their car loans:
- Gold: 0.25% discount
Joining the Preferred Rewards program is free. Youll need:
- A Bank of America personal checking account thats eligible for the program
- Combined balances from three months that average $20,000 or more
There are no application or origination fees for these loans.
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Who Is Bank Of America Best For
An auto loan with Bank of America is best for a driver that intends to finance their vehicle through a dealership rather than fully online. Although the rates offered are competitive, to truly benefit you would have to be a preferred rewards member which requires you to hold a high deposit or investment balance.
If youre looking to skip the dealership and dont have $20,000 to keep in the bank to get the rate discount, you may find better deals elsewhere.
Getting A Loan At The Dealership
Most dealerships will gladly offer financing on-site in order to sell a car faster, but some are more reputable than others. Dealers typically partner with banks and other lenders to do this. Be sure to read the fine print because some dealers will bury fees and offer expensive loans, especially if you have bad credit.
This is why its critical to first shop around online and seek options with your own bank to make sure you get the best deal. Sometimes, the rate is lower at your existing financial institution while other times it might be lower at the dealer, depending on the added fees.
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How To Apply For A Loan With Bank Of America
- Joint applicant information, if applicable.
How To Shop For Car Loans With Bad Credit
Even though you may have bad credit, there is an abundance of lending sources for you to choose from. Part of that is because the vehicle acts as collateral and secures the loan, which helps reduce the risk the lender takes on. However, if you repeatedly fail to make on-time monthly car payments or default, the lender can repossess the car.
Here are three ways to start looking for a car loan.
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The Interest Rate Difference
Your interest rate is the portion of the loan charged to you thats also known as the annual percentage rate. Interest rates vary widely, and your credit score is the primary indicator of the type of rate youll get.
Here’s an example showcasing how your loan is affected by a low-interest rate and a high-interest rate.
Low-Interest Rate Loan
Monthly Payment: $618
Total Car Cost: $37,102
When you compare these two loans, the only difference in the terms is the interest rate. The low-interest loan rate is 4.69%, and the high-interest loan rate is 16.78%.
With the higher interest rate, you will pay $150 more per month and $9,008 more over the length of your 60-month loan. While you can’t do much about these more expensive rates until you improve your credit, it’s crucial that you understand how your interest rate is impacting your auto loan financing.
Best For Refinance: Autopay
- As low as 1.99%
- Minimum loan amount: $2,500
AUTOPAY offers several different refinance options, competitive rates, and has flexible credit requirements. Borrowers can easily compare offers from different lenders on AUTOPAY’s site and choose the best deal.
Considers all credit profiles
Excellent credit required for the best rates
While AUTOPAY’s rates start at 1.99%, only those with excellent credit will qualify. According to AUTOPAY, they can, on average, cut your rate in half on a refinance.
AUTOPAY offers more refinance options than many lenders. In addition to traditional auto refinancing, borrowers can choose cash-back refinancing and lease payoff refinancing.
AUTOPAY is a marketplace that makes it easy to shop around for the best deal. It caters to individuals who are rebuilding credit or improving their credit.
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Bank Of America Auto Refinance Review: The Waycom Summary
Overall, Bank of America is an excellent refinancing option for those of you who have a good payment history and have been up to date on all your credit card payments. Customers with low credit scores may have to give this a pass because of the lack of a soft credit inquiry. However, folks with Bank of America accounts and previous auto loans taken from the bank can benefit from their affordable refinancing options.
Do I Need To Be An Americas Christian Credit Union Member To Apply For An Auto Loan
You dont need to be a member to start an auto loan application. However, youll need to qualify for and complete membership to finish the process. We are all about a life-long relationship and there are discounts for automatic payments through our checking accounts so if you want to get membership started first , you can do so here.
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Best For Bad Credit: Myautoloan
- As low as 1.90%
- Minimum loan amount: $8,000
myAutoloan not only offers reasonable low rates, but it also has lenders that work with people who have a history of credit problems. The marketplace provides a great opportunity for borrowers with poor credit to shop deals from multiple lenders at once.
Accepts borrowers with poor credit
Offers new, used, and refinance loans
Higher minimum loan amount requirements
Not available in Hawaii or Alaska
myAutoloan is a marketplace that allows you to compare multiple offers from lenders based on your credit profile. This type of company can help you cast a wide net and get the best offer available. It offers new, used, refinance, private party, and lease buyout loans.
Speed is one of myAutoloan’s benefits. Its online form takes just a couple of minutes to fill out and, once submitted, matches you with up to 4 lender offers. After you choose a lender, you can receive an online certificate or a check within as little as 24 hours.
Requirements in myAutoloan’s market vary by lender, but they say they have lenders who work with borrowers with lower scores.
Bank Of America Requirements
To borrow from Bank of America, you and your car will need to meet a few criteria.
BofA only has two basic requirements:
- At least 18 years old
- US citizen or permanent resident
But while it doesnt specify a credit score or minimum income, lower rates tend to go to borrowers with better finances.
Bank of America will not finance vehicles that are:
- Older than 10 years
- Have more than 125,000 miles
- Valued at less than $6,000
- Used for commercial or business purposes
- Salvaged, rebuilt or have branded titles
- Motorcycles, recreational vehicles, boats or aircraft
Independent dealers outside of BofAs network arent eligible for financing. In addition, the seller must be the same as the registered owner listed on the vehicle title whether the seller is an individual or a dealership. And the vehicle must be purchased directly from the seller or current owner.
Case study: Rhys experience
I got my auto loan with Bank of America in 2017, and its been as easy to deal with as it was to get. Working freelance means not having the typical income verification thats usually required for a loan. I was able to get a loan with Bank of America at the dealership with a down payment that was less than 10% of the amount, and at a rate that was better than what my credit union offered.
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Bank Of America At A Glance
Origination fee: None.
Personal information needed: Name, address, Social Security number, employment information, income, U.S. citizenship status and email address. Depending on the specifics of the loan, additional documents and information may be required prior to loan closing. Refinance loans and lease buyouts require specific vehicle information such as make, model, year, mileage and VIN.
Pre-qualification available: No. Rate quoted upon loan approval valid for 30 days from the date of original application submission.
Online, in-person or both: Apply online, schedule an appointment at a financial center or call 844-892-6002.
Approval speed: Most decisions available within 60 seconds of application submission.
Funding: Amount of time to fund a loan varies.
Minimum FICO credit score: Did not disclose.
Minimum credit history: Did not disclose.
Minimum annual gross income: Did not disclose.
Maximum debt-to-income ratio: Did not disclose.
Bankruptcy-related restrictions: Did not disclose.
States covered: All 50 states.
Assistance provided: Borrower works with a loan specialist whose phone number is provided on loan approval.
Availability: New customers call 844-892-6002 – MonFri 8 a.m.-midnight, Sat 8 a.m.-8 p.m. ET.Existing customers call 800-215-6195 – MonFri 9 a.m.-8 p.m., Sat 9:30 a.m.-6 p.m. ET.
Contact options: Call or visit a financial center. Customers can also send secure email through online banking.