Oct 23, 2017 / Money Tips
So, you’ve got some expenses coming up, you don’t have quite enough cash on hand, and your kneejerk reaction is to charge them to the ever-ready, handy dandy, always-reliable credit card. While using a credit card may be a fine option, there may be an even better way to borrow money. A personal loan is easy, affordable, and a great way to get some quick cash. Here’s everything you need to know about a personal loan.
Personal loans can be used to pay for anything from a wedding to a vacation, and educational to home repairs. Whereas other types of loans may restrict how you use the funds, a personal loan can be used for pretty much anything. You can also typically choose how long you want to take to repay the loan (between 1 and 5 years).
Many loans come with expensive closing costs and fees. A personal loan, on the other hand, has no origination or repayment fees. And, the time between loan application and disbursement of funds is comparatively short, so it’s a great way to borrow money when you need cash fast.
With a personal loan, the interest rate is fixed over the life of the loan, so there’s no guesswork or risk built into the repayment amount. This makes budgeting and planning for repayment much easier. And, while many credit cards come with fixed interest rates, a traditional loan typically offers a lower interest rate.
With some loans (like a home equity line of credit or an auto loan) you’re required to place your home or car as collateral. One of the advantages of a personal loan is that it’s unsecured, which makes it a great option for consolidating debt, or just borrowing a little extra cash on an as-needed basis.
If you’re looking to borrow a little extra money or consolidate credit card debt, consider speaking with a loan specialist about a personal loan. If you’re ready to learn more about a personal loan, call a Utah First Credit Union loan expert at 800-234-0729 or visit utahfirst.com.