If you want or need the cash to cover an expense, you may be considering applying with your financial institution for a personal loan. Of course, there are a variety of loan offerings, so it’s important to make sure you pick the right one.
So, where is the best place to get a personal loan?
We’re going to give you an overview of personal loans: what they are, the different types available and their pros and cons, and what kinds of places offer personal loans.
What Is a Personal Loan?
Simply put, a personal loan is money you borrow from a lender that you then pay back in monthly payments, also called installments. The amount of time you have to pay off your loan is called the term. Personal loan terms typically range from two to seven years.
If you need fast funding for an emergency expense, it’s a good idea to have savings or an emergency fund set aside. University Credit Union offers a range of savings options for members, from traditional savings to Money Market, Certificates, Coverdell Education Savings, and Individual Retirement Accounts.
What places offer personal loans?
If you need to borrow funds or consolidate debt, you may be considering a personal loan. So, let’s help you make an informed decision by taking a look at the different places to get a personal loan and examine the types of lenders.
Online Lenders
Online lenders are pretty much what they sound like – lenders that are available only online. You can apply for a personal loan and get your funds quickly, which can be a benefit.
It can be relatively easy to compare rates between online lenders, and you can sometimes get favorable interest rates and repayment terms. However, that may not be the case for borrowers who have less than excellent credit.
If the convenience of online lenders appeals to you, University Credit Union offers online and mobile banking, which gives you the ability to make payments to your loan online.
Banks
Applying for a personal loan at a bank can be a good option if you’re interested in more conventional products and services.
Personal loans often have lower interest rates than credit cards, so you may want to apply for one through a commercial bank. Banks will run credit checks to see if you qualify for a loan. But, if you don’t have the best credit history, you may not get the best interest rates.
Another drawback of going the traditional bank route for your personal loan is that it may also come with additional expenses, such as prepayment penalties and origination fees.
Credit Unions
If you’re looking to get a low interest rate on a personal loan, you may want to consider getting one through a credit union.
Unlike commercial banks, credit unions are not-for-profits. That means they can pass along higher dividends and lower interest rates on loans.
Since credit unions are owned by their membership, they have a vested interest in helping everyone succeed. This translates into more personalized member service, as well as help with financial wellness to improve your financial well-being.
Rather than taking your chances with commercial banks, which may carry additional fees and penalize you if you don’t have great credit, credit unions will work with you to find the best option for your situation.
University Credit Union: A great place to get a personal loan
If you’re a University Credit Union member, you can apply for a personal loan with our Best Rates in the Nation Guarantee.*
You might also be interested in applying for a personal line of credit, which is a personal loan that works somewhat like a credit card. These variable-rate lines of credit allow you to borrow on an as-needed basis. You only withdraw funds when you need them, and pay them off as you go.
University Credit Union personal loans are available at low, fixed rates and include a variety of repayment terms.
Our easy online application can get you started on the path to getting the funds you need.
See our low rates