Bank of America’s Balance Assistance program can provide short-term, low-value loans to bank customers for a fixed amount. The program, created in part to help clients avoid high-interest payday loans, is expected to be available nationwide by early 2022.
- Access the money almost instantly if you are approved.
- Pay a single fee of $ 5 for your loan, at no additional cost.
- Build a credit history with on-time payments.
- You can only borrow up to $ 500, in $ 100 increments.
- You should be able to repay the money and the $ 5 fee in three equal installments.
- You must have had a qualified Bank of America checking account for at least one year.
Balance Assist was designed to help Bank of America clients manage their short-term cash flow needs at low cost. Customers who meet the bank’s criteria can apply for a loan of up to $ 500 and only pay a $ 5 fee.
The program could be used to cover debt or unforeseen expense. This type of short term loan can be an alternative to payday loan.
Balance Assist allows eligible Bank of America customers to borrow in $ 100 increments, up to $ 500. You will complete an online loan application, and if approved, you should receive your funds within minutes.
Every time you borrow money, you pay a flat fee of $ 5. You then pay off your loan and fees in three equal installments over three months.
Bank of America offers this example of repayment: If you took out a $ 100 balance assistance loan, you owe a total of $ 105 and will pay $ 35 at 30, 60, and 90 days.
You will pay a $ 5 fee each time you borrow through Balance Assist and no other interest or finance charges. Bank of America says these fees translate to an annual percentage rate of between 5.99% and 29.76%, depending on how much you borrow.
Bank of America does not charge overdraft or insufficient funds fees for returned balance assistance payments, and borrowers will not be charged late fees.
Note: Overdraft protection will be disabled for the account receiving Balance Assistance funds, and this setting cannot be changed while you have an active loan. However, your account may still be overdrawn and you may owe a returned item fee of $ 35 for each declined or unpaid transaction.
Bank of America performs a credit check, but also considers your banking relationship if you have a poor credit history. You will also need to meet the program criteria:
- You must be a resident of the United States or the United States territories.
- You must have a qualified Bank of America checking account with regular monthly deposits for at least one year. A SafeBalance account is not eligible.
- You must maintain a positive balance in your Bank of America checking account.
- You cannot have a Balance Assist loan open or one within the past 30 days.
Bank of America does not mention a minimum credit score to be eligible for balance assistance, but a credit check is part of the assessment of eligibility. If your credit history is limited, your relationship with Bank of America will be considered in the approval decision.
Balance Assist is available in select states and is expected to roll out nationwide by early 2022.
Bank of America, based in Charlotte, North Carolina, is one of the largest banks in the United States and receives an A-plus rating from the Better Business Bureau. Trustpilot rates Bank of America 1.3 out of 5 stars.
Customers who have questions or concerns about Balance Assist can call the bank at 800-432-1000.
Balance Assist is an online program. Once you have logged into your Bank of America account, you begin the application process from the website. If your application is approved, the loan funds can be advanced to your account within minutes.