Are you wondering how to fund large purchases, like an engagement ring, or unexpected expenses, such as medical bills? Depending on the amount of money you need, your credit score, and other factors, a personal loan may be the answer.
Personal loans have several attractive qualities that make them a great option for certain borrowers. Explore these four instances below to help determine whether a personal loan may be the best solution for you.
1. When You Need Flexibility
Do you have expenses that the maximum limit on your credit card isn’t high enough to cover? If your limit is high enough, is the interest rate low enough for you to comfortably borrow the money you need? Maybe you've been working hard to save an emergency fund but it's not quite built up yet and the house is in need of an urgent repair. Is it time to propose? A personal loan could cover the cost of a ring.
If you have financial needs that require a solution your credit card or bank account can’t accommodate, a flexible personal loan could be the answer.
Personal loans allow you the flexibility to apply for just the amount you need and, once approved, they don’t have to be used for a specific purchase or purpose.
2. When You Need Fast Approval
While approval times vary between lenders, in some cases, you could learn that you qualify for a personal loan the same day you apply. Same-day approval is common at many banks and credit unions.
3. When You Don’t Have Collateral
Some loans require collateral. These loans are called secured loans and require you to provide security that you’ll pay off your loan in the form of collateral. Examples of collateral may include a home or a car. If you don’t make your payments, the lender can take possession of your collateral to pay off the loan.
Most personal loans are unsecured, which can make them more accessible for people who don’t have high value assets they can use to secure the loan.
4. When You Need a Fast and Affordable Way to Borrow Money
Regardless of your ability to cover your monthly expenses, you may need extra cash from time to time. When your roof starts to leak, your car stops running, or you’d like to refresh your apartment with new furniture, a personal loan can help. Because a personal loan often has a lower Annual Percentage Rate (APR) than a credit card, it can also be a more affordable way to cover these expenses.
Where Should You Apply for a Personal Loan?
Choosing your lender is one of the most important decisions you’ll make after you decide to apply for a personal loan. The source of your loan helps determine how much money you can borrow, what your repayment plan looks like, what your interest rate will be, and whether or not you’ll need collateral.
At PSECU we have personal loans that you can use for a variety of expenses, including home repairs, vacations, and even an engagement ring. Whether you’re getting married, starting a business, or updating your home, a personal loan can provide the funds you need.
Apply for a Personal Loan From PSECU
Our flexible terms, great rates, and personalized service ensure you're getting exactly the loan you need, and can afford.
