If you’re looking to secure a short-term loan with a low cash advance fee, you can get it with one of the most prominent banking institutions in the US—Bank of America.
Instead of payday loans, this institution offers balance assist loans, which are short-term cash advances of up to $500 with convenient interest rates. Both the interest and repayment terms are more convenient than with major payday lenders.
Using Your Checking Account to Apply
Before we get into any further details about this new type of payday loan, we will discuss the application procedure. The most important thing is that you need to be a registered Bank of America customer to apply. In addition, you must have a checking account at Bank of America for one year.
If you meet those two requirements, all you need to do to get fast cash is visit your local bank that belongs to the Bank of America chain with a checking account.
Once you arrange your loan, you can also use the Bank of America app to track your balance, assist loan and fees.
It’s also possible to apply for the loan with a Bank of America credit card.
How the Balance Assist Loans Work
This type of loan is a great way to get a cash advance between paychecks and increase your credit score. Thus, if you repay the loan on time, your credit score will get boosted because this type of payday loan leaves a mark on your credit history.
Of course, the loan terms and fees are as user-friendly as they get. Namely, you only have to pay a $5 fee for this cash advance with Bank of America. Regardless of your loan amount, which ranges from $100 to $500, the fee remains unchanged.
These are the main pieces of advice and information to follow when applying for these small loans:
- Make sure you have an active account for a year
- Accept the terms of services that include a fixed $5 fee rate
- You can also use a savings account at this bank to apply
- Agree to return the loan amount in 90 days
- Access cash by using your Bank of America app
Terms of Repayment
As previously stated, this financial institution offers their own payday loan variation with some of the most convenient terms. Having to pay only $5 on your loan can be a crucial factor to decide on making a loan request.
For lending comparison purposes, many of the other payday lenders include high fees that could reach an annual percentage rate (APR) up to 400%. The maximum APR for balance assist loans is only 29.7%.
This significantly improves borrowers’ ability to repay on time, which also reflects their credit scores. Another important aspect concerning this loan’s repayment terms is the time frame proposed. For instance, you can take up to 90 days to return the funds.
In addition, you can repay the loan before the due date without any additional fees applied to your debit card. You can also decide if you wish to repay the loan amount as a whole or in 30-day installments.
Benefits of Bank of America Payday Loans
There are many advantages of taking this cash advance from Bank of America:
- They come with a low-interest rate.
- You don’t need to have a prior qualification in terms of credit history to get the loan.
- The credit line extends to $500, which is enough to support your monthly expenses.
- You can repay in a single transaction, or use monthly installments for repayment.
- You can get the loan to reach your account on the same day upon submitting the request.
- The mobile app allows you to manage your loan and its conditions.
Payday Loan Substitutes at Bank of America
As a member of this bank, you can get other forms of cash advances.
These include installment loans and car title loans. It all depends on the total amount of money you wish to borrow since the cash advances we’ve discussed only apply to amounts up to $500.
Nevertheless, higher fees are applied to these types of loans, so you won’t be able to get a small loan fee of $5.
Also, with the balance assistance of this bank, you can expect the institution to transfer funds instantly through direct deposit, while installment loans might take longer to approve.
Final Thoughts
Specific short-term loans available at Bank of America make a great way for customers to cover their monthly expenses. As a solution according to the financial health network, this type of loan can help you significantly due to its convenient terms and fixed $5 fee.
Hopefully, this guide is more than enough for you to get a grasp of this type of short-term loan, and get to know its main terms. As a member of this bank, you’ll be able to qualify for the next loan as soon as you repay any ongoing loans you may have, making the no-fee early repayment factor a great added benefit.
