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.
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.
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!