If you want to move across the country or consolidate debt, personal loans are a viable way to cover expenses. Personal loans are typically unsecured and are available in amounts up to $50,000 -; but with good credit, you can get Low-Interest Personal Loans from Pearl Harbor Federal Credit Union. Read on for some factors to consider when comparing personal loan products.
Interest Rates
Personal loan interest rates are usually higher than those on collateral-backed (secured) loans. Interest rates are based on credit history, and your credit score can shorten the search for a low annual percentage rate. A credit union is a non-profit entity, typically offering low personal loan rates and help for those with poor credit.
If you have bad credit, you may find it simpler to find a loan if you have collateral or a cosigner -; but if you have a cosigner and you default on the loan, that person will be responsible for missed payments. Steer clear of payday lenders, because they offer loans with up to a 300% APR.
What’s Needed to get a Personal Loan
To get a personal loan, you’ll typically need the following documents.
- Valid ID such as a Social Security Card, state ID, passport or driver’s license
- Address verification such as a copy of a rental agreement or utility bills
- Proof of income such as pay stubs or W2 forms
You’ll have to provide other information such as your employer’s name, number, and address. The loan company will also want your address, phone number, and email, as well as your Social Security number.
Finding a Low Rate
When getting a personal loan, it pays to shop for a low rate -; even if it will slightly damage your credit score. Before signing loan paperwork, take these steps.
- Comparison shop. If your credit is good, you can get a credit card with a 0% rate, which is cheaper than taking out a loan.
- Think of getting a secure loan. If you own a home, consider using it to secure your loan and you’ll get a lower rate.
- Pay down your debt before you look for a loan. Outstanding debts, even if paid each month, count against you when lenders check your credit.
Getting Low-Interest Personal Loans can help you pay your debts, but you should evaluate your options before deciding. By borrowing carefully and making timely payments, you’ll save in the long run.
