What is a Personal Loan?
It’s money you can use for anything.
A personal loan is a loan that you qualify for based on your credit history and income. Personal loans are sometimes called “signature loans” or “unsecured loans” because there is no collateral to secure a personal loan. Lenders approve personal loans by evaluating your creditworthiness.
At Willis-Knighton Federal Credit Union, signature loans can be used for debt consolidation, home improvements, furniture, unexpected expenses such as repair bills, medical bills, vacations, special events, and more.
Personal loans are relatively easy to apply for and qualify for when compared to home and auto loans. That makes them useful for everything from small home improvements to expensive purchases. You can use the money for almost anything, but it’s wise to borrow only as much as you need and for things that improve your finances or make a significant impact on your life. Some lenders do restrict what the loan can be used for.
When you get a personal loan, you typically receive your money in a lump sum and you repay with fixed monthly payments over time. Interest rates depend on your credit. Fixed rates are most common. Your interest rate and payments do not change over the life of the loan. Variable rates are available, but the rate floats and you may end up paying more or less interest. Some lenders charge origination fees that can range from 1% to 6% of your loan amount.
Lenders evaluate loan applications based on credit-worthiness. They check your credit and look for details about previous loans and any late payments. Lenders will verify income to be sure you have enough income to repay your loan. Credit unions have a long history of offering personal loans. You can apply in person or online and receive funds in your checking account quickly.
Personal Loans at Willis-Knighton Federal Credit Union are a great way to get cash quick without withdrawing funds from your savings or putting a purchase on a credit card.
(*Annual Percentage Rate. Some Restrictions Apply. Reprinted in part from The Balance.com.)
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*APR = Annual Percentage Rate
*APY = Annual Percentage Yield
Rates are subject to change without notice
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