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- In response to COVID-19, Bank of America is offering payment deferrals for home loans, auto loans, and credit cards for up to 90 days.
- If you are still facing financial hardship after 90 days, Bank of America will consider further payment assistance on a case-by-case basis.
- Interest will continue to accrue on all loans, and any missed payments will be tacked onto the end of home and auto loan terms.
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Bank of America recognizes that many of its borrowers are losing work amid the COVID-19 outbreak - and, as a result, struggling to make payments on loans they've taken out with the bank.
Bank of America offers three types of personal loans: home loans, auto loans, and credit cards. The bank is offering deferment on all three loans for customers in good standing.
How to apply for loan deferment through Bank of America
Bank of America is offering up to 90 days of deferment for home loans, auto loans, and credit cards. The bank is not pausing any payments automatically - you must apply manually.
To apply, visit the bank's coronavirus response page and select "request payment deferral" near the top of the page. This link will lead you to a deferral application for all three types of loans.
"Bank of America is deferring mortgage payments for up to 90 days or until the crisis is over," Bank of America representative Bill Halden told Business Insider.
If you're still struggling financially due to the coronavirus after 90 days, contact Bank of America. The bank will handle these instances on a case-by-case basis.
Deferral is available for customers who are current on their loan payments. There is a little leeway - for example, if you're only a week late on your payment, you should still qualify for deferral.
Bank of America deferments for each type of loan
Deferred home loan payments will be tacked onto the end of your loan term
You can apply for deferral on your Bank of America home loan, including mortgages, home equity loans, and home equity lines of credit.
If you defer your Bank of America home loan, interest will continue to accrue. The missed payments are tacked onto the end of your loan term, which means you won't have to pay the total amount after the deferment period ends, but the term of your loan will lengthen.
You don't have to skip payments completely when you defer. You may choose to make smaller payments each month or to pay the lump sum at any time.
Bank of America will not report late or missed payments to credit bureau agencies. The bank also will not foreclose on your home or evict you.
If you have a home loan through federal mortgage companies Freddie Mac or Fannie Mae, Bank of America will follow those companies' policies on handling home loans during the pandemic. Federal policies regarding home loans are changing frequently, so check the Freddie Mac or Fannie Mae websites to ensure you have up-to-date information.
If you want to talk to a Bank of America representative about your home loan, call 1-(800)-669-6650.
Auto loan deferrals work similarly to home loan deferrals
Bank of America's policies for auto loans are similar to to its policies for home loans. You can request extended payment assistance if you continue to face hardship after the 90-day deferment period, and you can make modified payments at any time.
As with home loan payments, interest will continue to build, and any payments you miss will be added to the end of your loan term.
To speak with a representative about your auto loan, call 1-(800)-386-4017.
Credit card payments are on hold
Credit card payment deferrals work a little differently than home or auto loan deferrals. When you a pay off a credit card, you don't have a strict due date that you're expected to pay off the loan, like with other types of loans (although it's always best to pay your monthly bill in full, if you can). So when you defer your Bank of America credit card payment, your payments aren't tacked onto the end of a loan. Payments are just on hold until the deferral period ends.
Remember that interest still accrues during the deferral period, and rates are typically higher than home or auto loan rates.
To speak with a Bank of America representative about your credit card payments, call 1-(888)-800-5160.
- Read more on managing your money in this tumultuous time:
- 3 options for people struggling to pay their mortgage during the global health crisis
- 4 reasons to get disability insurance, even if you don't think you need it
- If you've been financially impacted by the coronavirus, you may be able to pause payments on these 8 bills
- How to get a stimulus check from the US government, which could pay up to $1,200 if you qualify
- In response to the coronavirus, credit card issuers like Amex and Capital One are letting customers skip payments without interest and more
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