How Bank of America Auto Loan Payments Work
Where Your Payment Goes and When It's Due
Bank of America auto loans are paid through automatic withdrawal from your checking or savings account, usually on the same day each month that you set up during the loan process. The payment date you choose stays the same every month—if you pick the 15th, your payment comes out on the 15th unless that day falls on a weekend or holiday, in which case it processes the next business day.
Your monthly payment covers three things: principal (the amount you borrowed), interest (what the bank charges for lending), and sometimes insurance or taxes depending on your loan structure. Bank of America breaks down exactly how much of each payment goes to principal versus interest in your monthly statement and online account.
If you miss a payment, Bank of America typically charges a late fee and reports the miss to credit bureaus after 30 days. The longer a payment sits unpaid, the more damage it does to your credit score and the closer you move toward default, which can result in the bank repossessing the vehicle.
Key Takeaways
- Bank of America withdraws your auto loan payment automatically from your bank account on the same date each month, which you choose when you set up the loan.
- Each payment is split between principal, interest, and sometimes taxes or insurance, and you can see the breakdown in your monthly statement or online account.
- Late payments trigger fees and are reported to credit bureaus after 30 days, damaging your credit score and increasing the risk of repossession.
- You can change your payment date, make extra payments, or pay off the loan early through your Bank of America online account or by calling customer service.
- If you cannot make a payment, contact Bank of America before the due date to discuss options like deferment or a modified payment plan.
Setting Up and Managing Your Payment Method
When you first get a Bank of America auto loan, you choose the payment date and the account the bank will pull from during the loan closing process. Most customers set up automatic payments (called autopay) so the money moves without them having to remember each month. You can change your payment date anytime through your Bank of America online account or by calling 1-800-333-6262.
If you want to pay more than your required monthly amount, you can do that without penalty. Extra payments go directly toward principal, which means you pay less interest over the life of the loan and finish paying it off sooner. You can make a one-time extra payment online, through the mobile app, or by phone.
If you need to pause payments temporarily, Bank of America offers payment deferment in some cases—usually for up to two or three months—which pushes your due date forward. Deferment is not automatic; you have to request it, and the bank will tell you whether you may have access to based on your account history and the reason for the request.
What Happens If You Miss a Payment
A payment is considered late the day after your due date passes. Bank of America charges a late fee (the amount varies but is typically $25 to $35) and reports the miss to the three credit bureaus—Equifax, Experian, and TransUnion—after 30 days. A single late payment can lower your credit score by 50 to 100 points depending on your current score.
If you miss two or more payments in a row, Bank of America may declare your loan in default and begin the process of repossessing the vehicle. Repossession can happen without warning and without a court order in most states. Once the car is repossessed, you still owe the remaining loan balance, and the repossession itself stays on your credit report for seven years.
If you see a payment is about to be missed, call Bank of America before the due date. The bank can sometimes pause a payment, adjust your due date, or work out a temporary plan. Waiting until after you miss the payment makes negotiation much harder.
How to Make Payments Online and by Phone
The easiest way to pay is through your Bank of America online account or mobile app. Log in, go to your auto loan, and you can see your balance, due date, and payment history. You can make a one-time payment or adjust your autopay settings from there. Payments made online usually process the same day if submitted before 8 p.m. Eastern Time.
If you do not have online access or prefer to pay by phone, call 1-800-333-6262 and speak to a customer service representative. They can process a payment over the phone using your bank account or debit card. Phone payments also typically process the same day.
You can also pay by mail by sending a check to the address listed on your monthly statement, but mailed payments take 7 to 10 business days to reach the bank and post to your account. If you are close to your due date, mailing a check risks a late payment being recorded even if the check arrives eventually.
Understanding Your Monthly Statement and Account Details
Your Bank of America auto loan statement shows your loan balance, the amount due, the due date, and how much of your last payment went to principal versus interest. Early in the loan, most of your payment covers interest; later, more goes to principal. This is normal and is called amortization.
Your statement also lists any fees charged that month, your interest rate, and the total amount you will pay over the life of the loan if you make only the minimum payment. You can view your full payment history and download statements from your online account going back several years.
If you see a payment on your statement that you did not authorize or that appears to be wrong, contact Bank of America within 60 days. The bank has a dispute process and can investigate unauthorized charges or processing errors.
Paying Off Your Loan Early
Bank of America auto loans do not have a prepayment penalty, which means you can pay off the entire loan balance at any time without extra charges. Paying off early saves you money on interest and frees you from the monthly payment obligation sooner.
To find out your exact payoff amount, log into your online account or call 1-800-333-6262. The payoff amount includes your remaining principal balance plus any interest accrued up to the date you plan to pay. If you are paying off on a specific date, ask the bank for the payoff amount on that exact date, because interest continues to accrue daily.
Once you pay off the loan in full, Bank of America will release the lien on your vehicle, meaning you own it free and clear. The bank sends you a title release document, which you then file with your state's Department of Motor Vehicles to update the title in your name alone.
What to Do If You Cannot Afford Your Payment
If your financial situation changes and you cannot make your payment, do not ignore it. Contact Bank of America as soon as possible—before the payment is due if you can. The bank has options for customers in hardship, though what is available depends on your situation and account history.
Options may include a temporary payment reduction, extending the loan term (which lowers the monthly payment but costs more in interest overall), or a short-term deferment. Some customers also explore refinancing through another lender to get a lower interest rate or longer term, which reduces the monthly payment.
If you are facing long-term financial hardship, you may also consider selling the car and using the proceeds to pay off the loan, though this only works if the car is worth more than what you owe. If you owe more than the car is worth (called being "upside down"), selling does not eliminate the debt.
Frequently Asked Questions
Can I change my payment date with Bank of America?
Yes. Log into your online account, go to your auto loan, and select "Change Due Date" or call 1-800-333-6262. You can usually change your due date to any day of the month, though some dates may not be available depending on the bank's processing schedule.
What happens if I pay late by one day?
Bank of America considers a payment late the day after your due date. A one-day late payment triggers a late fee and is reported to credit bureaus after 30 days. If you are only one day late, call the bank immediately to explain; sometimes they will waive the fee if it is your first miss and you pay right away.
Does Bank of America charge interest on late payments?
No, but they do charge a late fee (typically $25 to $35). Interest continues to accrue on your remaining balance as normal. The longer the payment sits unpaid, the more interest you owe on top of the late fee.
Can I make a payment without autopay?
Yes. You can make one-time payments online, through the mobile app, or by phone whenever you want. However, if you do not set up autopay, you are responsible for remembering to pay each month, and missing a payment is your responsibility even if you simply forgot.
What if my autopay payment fails because my bank account is empty?
Bank of America will attempt to process the payment, and if it fails due to insufficient funds, the bank charges a late fee and reports the miss to credit bureaus after 30 days. Contact the bank immediately to make the payment and ask about the late fee; sometimes it can be waived if you pay within a few days and have a clean payment history.