Personal Loans: What They Are and When to Get Them

posted on Friday, November 6, 2020 in Financial Tips

A personal loan is a type of financing option that can be used for several purposes, like home renovations, debt consolidations, vacations, hospital bills, and so on. Once approved, you will be given the full sum you applied for. It can also be paid through monthly installments, but the terms may vary depending on the service provider.

When Is the Best Time to Apply for One?

While personal loans can be used for various expenses, it is still important to assess if it’s the best option for your needs. Consider other options like using a credit card, especially if it’s for smaller transactions like buying a piece of furniture. Here are some scenarios wherein taking out a loan is ideal:

Making a Big Purchase or Transaction

A personal loan is a great option if you want to make a big purchase or transaction but you’re a little short on cash. It makes repayment manageable as it is done over a few months. It can be used for home remodeling, vacations, and huge events like quinceañeras and weddings.

Paying for an Emergency Expense

Personal loans can also be used for unexpected expenses that require a hefty sum. Here are some instances where this financing option can be handy:

  • Covering medical costs like surgical procedures, treatments, and medications
  • Paying for funeral expenses like memorial services, cremation, and caskets

Improving Your Credit Score

Personal loans can greatly affect your credit standing. To make the most out of them, make sure that you pay your monthly balance on time and in full. This will show the lender that you are capable of handling debt. Over time, this will pay off and have a positive impact on your scores.

Apply for a No Collateral Personal Loan Today!

At Community 1st Credit Union, we provide personal financing options without the high interest rates and fees. From your dream vacation to unexpected medical bills, we are here to help. You can apply for a loan or schedule an appointment through our website. If you have any questions or concerns, don’t hesitate to reach out to us now.