Bank of America Balance Assist Lender Review
Bank of America’s Balance Assist program can provide short-term, small-dollar loans to bank customers for a flat fee. The program, created in part to help customers avoid high-interest payday loans, is expected to be available nationwide by early 2022.
- Access money almost instantly if you are approved.
- Pay just one $5 fee for your loan, with no other charges.
- Build credit history with on-time payments.
- You can only borrow up to $500, in $100 increments.
- You must be able to pay back the money the $5 fee in three equal installments.
- You must have a qualified Bank of America checking account for at least one year.
Balance Assist was designed to help Bank of America customers manage their short-term cash needs at a low cost. Customers who meet the bank’s criteria can apply to borrow up to $500 pay just a $5 fee.
The program could be used to cover a debt or an unexpected expense. This type of short-term loan may be an alternative to a payday loan.
Balance Assist allows eligible Bank of America customers to borrow in increments of $100, up to $500. You will complete a loan application online, if it’s approved, you should receive your funds in minutes.
Each time you borrow money, you pay a $5 flat fee. You then repay your loan the fee in three equal installments over three months.
Bank of America offers this repayment example: If you took a $100 Balance Assist loan, you would owe $105 total pay $35 at 30, 60 90 days.
You will pay a $5 fee each time you borrow through Balance Assist no other interest or finance charges. Bank of America says this fee translates to an annual percentage rate of between 5.99% 29.76%, depending on how much you borrow.
Bank of America does not charge overdraft or insufficient funds fees for returned Balance Assist payments, borrowers will not owe late fees.
Note: Overdraft protection will be turned off for the account receiving Balance Assist funds, this setting cannot be changed while you have an active loan. Your account may still become overdrawn, however, you may owe a returned item fee of $35 for each declined or unpaid transaction.
Bank of America runs a credit check but also considers your banking relationship if you have a thin credit history. You will also need to meet the program’s criteria:
- You must be a resident of the U.S. or U.S. territories.
- You must have a qualified Bank of America checking account with regular monthly deposits for at least a year. A SafeBalance account does not qualify.
- You must maintain a positive balance in your Bank of America checking account.
- You can’t have an open Balance Assist loan or one within the last 30 days.
Bank of America does not mention a minimum credit score to qualify for Balance Assist, but a credit check is part of the evaluation for eligibility. If your credit history is limited, your relationship with Bank of America will be factored into the approval decision.
Balance Assist is available in select states 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 U.S. receives an A-plus rating from the Better Business Bureau. Trustpilot scores 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, loan funds can be advanced to your account in minutes.