5 Things to Keep in Mind When Taking Out a Personal Loan - VFCU

5 Things to Keep in Mind When Taking Out a Personal Loan

One of the best ways to resolve financial matters in a pinch is through a personal loan. Whether you want to boost your finances when you’re short on cash or need to pay off debt and consolidate it for one payment, a personal loan can really help. Read on for some helpful tips if you’re thinking about applying for a personal loan soon.

If you’re thinking about applying for a personal loan, then call or visit us anytime!

Before Starting the Process

The gateway to a loan with a low interest rate is a high credit score. The higher the credit score, the better chance you have of qualifying for a lower interest rate on personal loans. If you happen to think your credit score is inaccurate, contact the credit company and ask that corrections be made. If one of your credit scores is significantly lower than it should be, this can be an indication of fraudulent use of your credit or a reporting error.

Review Your Finances

Make sure to review all of your obligations and current finances before applying for a personal loan. It’s important to have a good reason for accumulating more debt. Paying off a student loan or medical emergency expense is one thing, but habitually spending money on things you don’t need is something entirely different.

We recommend developing a budget and basing it on your obligations and income, which can help you avoid overspending and impulse buying. Just remember to consider your reasons for getting a personal loan. Consolidating debt can help streamline the bill-paying process, but it won’t work if you add more debt.

Tips for Loan Searching

Remember to shop around when requesting personal loan quotes. Compare all of the rates and repayment terms and request full disclosure of lender fees and charges. While VFCU has great rates on personal loans, we also want to make sure that you find something that works for you. Also keep in mind that extra loan costs can eat up savings gained through lower interest rates. While personal loans may cost less than credit card balance transfers, they don’t require collateral.

Home equity loans or new lines of credit usually require some kind of collateral. Personal loans, on the other hand, require set payments over specific terms. This guarantees that you’ll pay off your personal loan. If you have any questions about our personal loans, never hesitate to reach out to us.

Loan Rates

Finding that bargain rate might seem like a challenge, and once found, they won’t mean much if they come with the added baggage of costly lender fees, although you can help minimize said fees by avoiding late charges to your account. When it comes to lending, don’t make assumptions or allow your questions to remain unanswered, speak up and ask away.

You’ll need to have a clear understanding before choosing the loan that fits your needs. This is why we pride ourselves in providing great customer service and financial consultations so that you emerge a confident and happy customer. If you have questions about our signature loans, we’re here to help!

What to Keep in Mind

Remember that a personal loan will only work depending on the commitment you put into it. Make payments on time and avoid taking on additional debt to help you stay on track of reaching your financial goals. Borrowing responsibly is essential, especially when debating if you really need a loan or not.

It’s okay to borrow for a down payment on a car or even a much-needed vacation, but just understand the consequences of taking on nonessential debt. Think about financial hardships or the loss of a job that could possibly strain your finances. These are all things to consider before signing on that dotted line.

Apply for a Loan with Us!

At VFCU, we make sure our customers know the benefits of a personal loan while explaining the added responsibilities that come with it. As a VFCU member, we make sure every decision is the smartest one when dealing with your finances. If you’re ready for a personal loan with great low rates coupled with great customer care and financial services, then contact our credit union in Harlingen today!

13 Responses to “5 Things to Keep in Mind When Taking Out a Personal Loan”

  1. I agree that it is a good idea to make the payments on time. If you are unable to make the whole payment, I would suggest to pay a little more than the minimum amount. Overtime, this could significantly reduce the interest you have to pay.

  2. Rachel Lannister

    Thanks for the amazing read. My brother wanted to take out a loan, but wasn’t sure how he would go about doing that. You wrote that when it comes to choosing a loan lender, you should ask them plenty of questions and make sure that they are able to answer all of them. Especially since my brother is new to this, he’ll need that kind of support to ensure he gets the right loan for his situation.

  3. Tomas Killington

    My brother has been struggling with his finances recently. He has been told that he needs a new furnace, so he’s looking for a way he can cover that large expense. I didn’t realize how important it is to review your finances before applying for a personal loan to ensure your budget can accommodate the payment. I’ll be sure to share this information with my brother.

  4. Alexandria Martinez

    I remember my cousin talking about an interest in getting a signature loan. If she does I think your advice to put in a sizable amount of commitment into it so that you stay on track will be very beneficial for her. She could use this advice and I’ll let her know. Thank you for the post.

  5. Bethel Smith

    I have always dreamed of spending a summer in Europe and this year might be my chance. Since I have been studying full-time, I have not had a chance to save up money so I will need a loan. Your tip about reviewing your finances has really helped me get in the right mindset for preparation. Saving money now will make the loan a lot easier on financial plans.

  6. Millie Hue

    My best friend told me that he will be getting a personal loan because he needs to pay his vehicle because he can’t afford to lose it. He uses it everywhere, from his work to sending and fetching his children. So losing it will cause a headache to both him and his wife. I found it interesting when you said that the credit score makes a difference with the interest rate of the loan since a lower score gets a lower interest rate. I’ll share this with him. Thanks!

  7. Wade Joel

    I like that you elaborated on how personal loans cost less than credit card balance transfers and don’t require collateral. I have been considering getting a credit card to help with my credit for quite some time now. Thank you for your tips on personal loan.

  8. Jordan Miner

    I’ve been wanting to find a personal loan, and I think that some information would be nice. I like that you talked about how you should make payments on time for personal loans, because I think that being able to do that could be nice. I’m going to have to look for a few good personal loans and see what we can find!

  9. Hector Uba

    Thanks for elaborating on the different things you should look for when getting a loan; it was very helpful. I agree that you should find a lender that is willing to be upfront about all of its fees and rates. My brother is looking to get a personal loan for rehab; I will be sure to share this with him.

  10. I really appreciate your tip to try and raise your credit score in order to get a lower interest loan. My wife and I have been considering taking out a personal loan with the bank in order to help our kid get through college. I will be sure to tell my wife that before we apply for a loan, we should to try and get our credit score up!

  11. I really appreciate it when you suggested learning about the type of loan that best fits my needs, so it is best to ask the lender about all the questions that come to mind. My sister is torn between the payday loan and the personal loan, so I guess that is the first thing that she needs to figure out. I will have her ask a professional to see what will suit her situation the most. Thank you.

  12. Thanks for the tip about reviewing your finances before getting a loan. Making sure that everything is in order and that you can make the monthly payments would be important. My husband and I are looking for a personal loan, so we’ll have to check our finances first.

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