Get to Know MAFCU
Is a Personal Loan Right for You?
March 14, 2016
By: Stacy Yu
Whether you are in need of a small loan to cover a few hundred dollars or a larger loan one time emergency loan, depending on your situation, a personal consumer loan may be a good solution for financing needs.
Here are some helpful facts to help you determine if a personal loan is right for you.
1. Multi-Purpose Use
Personal loans are borrowed funds that can be applied to any expense. Possible uses of a personal loan include the purchase of household items, lower-cost home remodeling projects, medical bills, vacations, and any one time emergency expense.
2. Personal Loans Can be Secured or Unsecured
Depending on the financial situation, borrowers have the option to acquire secured or unsecured personal loans. For borrowers with favorable credit, in addition to assets such as jewelry, gold, cars, homes or shares, secured personal accounts, a Shared Secured personal loan, is a great solution to accessing needed funds. For borrowers that do not wish to borrow against an asset, unsecured personal loans, such as MAFCU's Signature Loan and Kwik Line of Credit offer individuals financial relief without putting assets at risk. Some personal loans may have pre-payment penalties associated with them for paying off the debt before the designated time period. MAFCU does NOT apply pre-payment penalties to any of their loans.
3. Lower Interest Rate than Credit Cards
When given a choice between a personal consumer loan and borrowing against a credit card, in most cases, the personal loan is the better choice. Under most circumstances, interest rates that are applied to credit card balances are higher than rates applied to both secured and unsecured personal loans – making the consumer loan the more economical solution to your financial needs. The lower interest rates on personal consumer loans also make them a good solution for consolidating and managing any accumulated credit card debt.
4. Faster Access to Funds
Unlike with mortgages and auto loans, the application process for personal consumer loans is often much simpler and hassle-free. For consumer loan applicants, MAFCU requires a few pieces of key information: general information about your financial needs, social security number to run a credit report, general employment, income, assets, amount requested and relevant collateral information. With minimal documentation needed to apply for the loan, processing often occurs more swiftly and borrowers can access the needed funds quickly.
For more information about MAFCU's Personal Consumer loans, go to https://www.mafcu.org/accounts.cfm/take-a-loan/consumer-loans.