How Big of a Personal Loan Can I Get?
Personal loans come in a wide range of amounts, from $1,000 up to $100,00. However, those are extremes. Most lenders offer personal loans somewhere in the middle. When it comes to loan interest rates, the better the borrower’s credit score the lower the interest rate will be. This is because lenders reward borrowers with higher credit scores with better rates, as they are considered at lower risk for defaulting on loan payments.
Credit Union of Southern California (CU SoCal) is one of the fastest growing credit unions in Southern California, providing checking, savings, and loan products, including personal loans, with quick pre-approvals, no application or funding fees, and other great member benefits.
Call CU SoCal at 866.287.6225 to schedule a free no-obligation consultation, or apply for a personal loan today!
What Is a Personal Loan?
Personal loans can be secured
. A secured loan requires the borrower to pledge an asset such as property or a car to “secure” the loan. If the borrower does not pay the loan in full, the lender can takes possession of the asset or “security” that was used as collateral to secure the loan. Mortgage loans and vehicle loans are both examples of secured loans.
Credit Union of Southern California (CU SoCal) offers secured personal loans that can be secured using the borrower’s Savings or Share Certificate (the credit union version of Certificates of Deposit) as collateral. This secured loan lets Members borrow up to a certain percentage of their account balance in the form of a loan.
loan is one that is made based on the applicant’s creditworthiness (not collateral or security). No collateral is needed in order to get an unsecured personal loan.
CU SoCal offers both secured and unsecured personal loan options to satisfy a wide range of borrower needs. Read What are Personal Loans
to learn more.
What Can I Use a Personal Loan For?
Personal loans can be used for just about anything, but most people use will use a personal loan to pay for large personal expenses (like starting a business) and sudden unexpected expenses (such as paying medical bills). Other common uses for personal loans are: consolidating high-interest debt, paying for a wedding or funeral, paying off a tax lien or college tuition, home renovations, and even buying a car.
Want to know more? Read What are Personal Loans Used for?
Factors That Affect Your Loan Amount
All lenders want to know if a borrower will be able to make on-time payments and not default or stop paying the loan. These factors listed below will have an influence on the loan interest rate you are offered and the loan amount you qualify for.
All lenders will ask to see one or more proof of including, including pay stubs, tax returns, your W-2s or 1099s (if you’re self-employed).
Your credit score will tell lenders how you have managed your debt. If you’ve paid bills and loans on-time then you’ll likely have a good or excellent credit score. Lenders look at a borrower’s credit score to determine the level of risk that borrower will be.
With information on your income as well as your debts, the lender will determine your debt-to-income ratio and use this to further consider your risk as a borrower. A low debt-to-income (DTI) shows the lender that you are less risky and more likely to pay back the loan.
A cosigner is someone (such as a friend or family member) who agrees to “cosign” the loan with you. By doing this the cosigner accepts responsibility for repayment of the loan. If you, the primary borrower, stops paying the loan, the cosigner is responsible for paying. Having a cosigner can make it easier to get approved for a loan, get a better rate and a higher loan amount, because there are two people accepting the obligation to pay the loan.
Where Can I Get a Personal Loan?
Personal loans are offered by credit unions, banks, and online lenders. Each type of lender will have unique interest rates, loan terms, fees, and possibly a prepayment penalty. Be sure to shop around and get all the details before you accept the loan.
The best place to look for a personal loan is where you currently do your banking. Your credit union or bank may be able to offer you a promotional interest rate, low or no fees, and other benefits.
The three main sources for getting a personal loan are:
Traditional banks tend to have higher credit score and income requirements than credit unions. And if you have bad credit, getting a good interest rate on a personal loan could be challenging. If you need the money in a hurry, banks may take longer to release funds, so ask how long the approval and funding process will take before you apply.
As a not-for-profit organization, credit unions reinvest profits back into the organization, so members benefit from lower interest rates on loans. Credit unions provide members with personalized services, and other advantages, including no application, no prepayment penalty, and no funding fee. CU SoCal can provide financing from $500 to $30,000.
While numerous online lenders offer personal loans, because they are entirely online, with no storefront, they can’t offer the personalized member service of a credit union or local bank. If you use an online lender, be sure to compare rates and loan terms and fully understand the terms of the loan. In the past, it was determined that a number of online lenders were not legitimate.
Personal Loan Alternatives
There are times when getting approved for a personal loan just isn’t possible, due to bad credit or no credit. Here are some other options for getting the money you need when a personal loan isn’t an option:
Nonprofits, Charities and Religious Organizations:
Community and faith-based organizations can help with locating work opportunities and financial assistance opportunities.
Explore Options to Pay-off Bills:
Your credit union or bank can provide you with debt consolidation options, so you can pay-off bills at a lower interest rate, freeing up money to use for new purchases. Paying down and paying-off debt can help you raise your credit score, making it easier to eventually get approved for a personal loan.
Some employers offer paycheck/payroll advances. Check with your human resources department to see if this option is available. Be sure to ask if there are fees associated with taking an advance in pay.
Family and Friends:
Borrowing money from a family member or friend can be a quick way to get the money you need. While borrowing from family or friends can be tempting, consider first that loans from family and friends have emotional attachments that could negatively impact your relationships. If you do borrow money create a contract stating the duration of the loan and whether or not you are expected to pay interest, and if so, at what rate. Both you and the family member should agree to the terms and sign the document.
CU SoCal's personal loans
CU SoCal Personal Loans
range from $500 to $30,000, and can be used for anything you wish, from a vacation to a home renovation.
CU SoCal Personal Loan features include:
- Rates as low as 2.50% + Share Certificate Rate.1, 2, 3
- Terms up to 120 months for the lowest possible monthly payment.
- Line of credit option for access to funds when you need it.
- No application fee.
- No prepayment penalty.
- No funding fee.
- Optional loan payment protection.
Why Savvy Consumers Choose CU SoCal
For over 60 years, Credit Union of Southern California has been proudly serving the Southern California community. We provide our members with checking, savings, personal loans, and other loan products with quick pre-approvals, no application or funding fees, and other unique advantages.
We are known throughout the area for our excellent Member service and we are proud to serve the communities where we work and live.
Apply For A CU SoCal Personal Loan Today!
Please give us a call today at 866.287.6225 to schedule a no-obligation consultation with one of our loan experts.
1. APR=Annual Percentage Rate.
2. Estimated payment per $100 for a 120 month term is $1.04.
3. Rate includes a 0.50% reduction for payroll direct deposit (at least half of net payroll) into a CU SoCal Checking Account with automatic payment to your loan. Your rate may adjust if you discontinue direct deposit/payroll or payment transfer. The above discounts are one time, and only apply at time of origination.