Best reasons to get a personal loan
A personal loan is an unsecured loan that you pay back in fixed monthly payments over a set period, called a term. A personal loan can be a convenient, affordable way to fund a one-time expense.
The following is a list of circumstances that might leave you considering a personal loan.
Adding equity to your home: Some home improvements can make your home more valuable. Remodeling the kitchen, adding another bathroom, upgrading your HVAC or improving your curb appeal are all examples of home projects that could improve the sales value of your home. If you don’t have enough equity in your home to get a home equity loan or line of credit, a personal loan might be an option.
Consolidating debt: By using one personal loan to pay the balances on multiple loans and credit cards, you combine several monthly payments into one. Consolidating all those loan payments simplifies your budget; you may even save money if the interest rate on the personal loan is lower than the interest rate on the other loans. Consolidating your loans often reduces the amount of time it takes to pay off your debt, too.
Funding a milestone event: A milestone event might include a wedding, moving expenses, a graduation, a quinceanera or a dream vacation. While you don’t want to finance every vacation or party, getting a little help with your once-in-a-lifetime events can make the difference between an OK event and one you will remember.
Strengthening your credit score: If you have solid credit already but if it is mainly composed of credit card debt, adding variety to your credit history with a personal loan could be just the ticket. The kind of debt you have makes up 10 percent of your FICO credit score. It’s called “credit mix.” Borrowers whose history shows a mix of revolving credit and installment loans represent less risk to lenders. You can learn more about credit scores by reading our article, How your credit score is calculated. If you’re taking a personal loan to build credit, make sure you make all of your payments on time.
Back to financial education resources
| Loan type | APR (Low)* | APR (High) | Repayment terms |
|---|---|---|---|
Apply online: Personal loan or Personal Line of Credit || Choose a branch to apply for a loan || Call 800-732-0173 | |||
| Personal Loan | 11.99% | 19.24% | 12-36 months |
| Personal Loan | 16.24% | 19.24% | 37-60 months |
| Payday Advance | 18.00% | 18.00% | Up to 30 Days |
| Personal Line of Credit (PLOC)** | 11.75% | 20.50% | $25 or 2.50% of the total balance, whichever is greater. |
Savings-secured loans:
| |||
Certificate-secured loans:
| |||
About these Personal Loan rates* APR (Low) indicates the lowest annual percentage rate you may qualify for on the loan. The annual percentage rates shown in the table are reflective of a range of rates available. All loans are subject to approval. You may qualify for the lowest rates published depending upon your credit qualification, the amount financed, receiving a 0.25% APR reduction by maintaining an automatic loan payment each month and 0.25% APR reduction for qualifying for the Premier Member Merits category. The Member Merits rate discounts are subject to change. ** Personal line of credit is not eligible for the Member Merits or automatic payment decrease in APR. The Periodic Rate and corresponding Annual Percentage Rate for the Personal Line of Credit loan is calculated by adding a graduated margin (the margin is based on a risk based pricing tier) to the month end Prime Rate for the previous calendar month as published by the Federal Reserve. The Annual Percentage Rate will never be more than 18% or the maximum rate allowed by applicable law. Payment examplesThe following examples illustrate the expected monthly loan payments for members who qualify for the prime rate, premier member merit status and enroll in automatic monthly payments:
| |||