Where Can I Get A Personal Loan At A Good Rate
If you’ve been asking yourself, “Where is the best place to get a personal loan”, the truth of the matter is that most financial institutions offer personal loans for people who find themselves in need of extra cash to pay bills, make home or car repairs, pay medical bills or school tuition, and other expenses that occur.
Each lender will offer unique interest rates and payment terms, so be sure to shop around. If you find yourself in sudden financial need, your first call should be to the credit union of bank where you already have an account. Current clients could have access to a wider range of loan options.
Credit Union of Southern California (Cu SoCal) is here to help you get the personal loan you need.
Call CU SoCal at 866.287.6225 to schedule a free no-obligation personal loan consultation with one of our knowledgeable, friendly loan experts, or apply online today!
What Is a Personal Loan?
A personal loan is referred to as an “unsecured” loan because the lender will give the loan to an individual based on their creditworthiness (not collateral). For example, home mortgage loans and car loans are “secured loans,” which are backed by collateral (the home or car).
Where to Apply for a Personal Loan
Although getting a personal loan is an easier process than getting a mortgage or car loan, there’s still an application to complete and the lender will ask permission to look at your credit score in order to determine your creditworthiness.
Credit unions and banks both will have limits to how much you can borrow with a personal loan, so be sure to ask about the maximum amount available to you and what the monthly payment amount and terms will be.
Always borrow an amount for which you can afford to make monthly payments. While you may get approved for a large amount, be sure to ask your loan representative what the monthly payment will be (with interest).
For more details read “What are Personal Loans
What Can Personal Loans be Used for?
Personal loans can be used for a variety of purposes, but are typically for personal expenditures, like starting a business, paying a medical bill, consolidating high-interest debt, or covering a large expense, such a wedding, tax lien or college tuition.
Personal loan interest rates tend to be lower than credit card interest rates, which is why many people will choose to get a personal loan to pay for new appliances, new furniture, home renovations, etc. If you know that you’ll need some time to pay off the loan, compare rates between a personal loan and your credit card interest rate.
Going on Vacation:
Many people will take out a personal loan to pay for a family vacation.
During the application process, the lender will do a credit inquiry, which will result in a slight dip in credit score, but the greater benefit will be that you can build credit by making on-time monthly payments on the loan. Taking out a personal loan also contributes to a better credit mix,
which helps to boost your credit score.
Best Place to Get a Personal Loan
Many people want to know “where can I take out a personal loan?”
There are three main options when it comes to where to get a personal loan:
Traditional banks tend to have higher credit score and income requirements than credit unions. If you happen to have bad credit, getting a good rate on a personal loan from a bank could be challenging. If you need the money in a rush, 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 loans. Typically, there are no fees or lower fees than you’d find at a bank. CU SoCal does not charge fees on personal loans.
While numerous online lenders offer personal loans, they can’t offer the personalized customer service of a credit union or local bank. They may also have higher interest rates. Be sure to compare rates and fully understand the terms of the loan.
Personal Loan Alternatives
If getting a personal loan isn’t possible due to bad credit or no credit, here are some other options for getting the money you need:
Nonprofits, Charities and Religious Organizations:
Community and faith-based organizations offer resources including food banks, clothing, and emergency housing options. Many can help with work opportunities and financial assistance.
Explore Options to Pay-off Bills:
It could be a good time to consider debt consolidation to pay off or pay-down your bills, especially if you have large outstanding balances. Your credit union or bank can provide you with options to pay off bills at a lower interest rate, freeing up money to use for new purchases.
Ask your employer if the company has a policy that would let them pay you in advance of your usual payday. If this option is available, be sure to ask if there are fees associated with taking an advance.
Family and Friends:
Borrowing money from a family member or friend can be a quick way to get extra funds. While borrowing from family or friends can be tempting, it’s important to create a document stating the conditions and 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. Loans from family and friends have emotional attachments that could negatively impact your relationships.
How to Get a Personal Loan
- Start where You Bank. Contact your current credit union or bank and ask to speak with a loan representative. The financial institution where you currently have an account will make the application process easy and convenient, and you may benefit from low or no application fees.
- Apply. Your credit union or bank can help you apply in person, or you can easily complete an application online.
- Credit Check. Because personal loans are given based on the borrower’s creditworthiness, the loan representative will get your permission to do a credit check, to see your credit score and your history of on-time payments.
- Income Verification. The lender may also request to see a recent tax return, to make sure you have the income needed to make monthly payments on the loan amount you borrow.
Why Savvy Consumers Choose CU SoCal
CU SoCal is the fastest growing credit union in Southern California, providing checking, savings, and loan products with quick pre-approvals, no application or funding fees, and other member advantages.
We are known throughout the area for our excellent customer service and we are proud to be serving the community where we work and live.
Apply For A CU SoCal Personal Loan Today!
Call CU SoCal at 866.287.6225 to schedule a free no-obligation personal loan consultation, or apply online today!