At Travis Credit Union, we understand that each person’s financial situation is unique and that everyone must follow their own path toward financial wellness. But you do not have to walk this path alone. We have created this online guide to help you make informed decisions about a lending product that can help you take control of your finances: personal loans.
We will walk you through the basics of what they are, how they work and what is required to get one. We will also discuss whether personal loans are the best option to finance a major purchase, consolidate debt or pay for unexpected expenses. Let’s get started.
What is a Personal Loan?
A personal loan is a lending product that does not require collateral to qualify for the loan. Instead, this type of loan is considered an unsecured debt. Also known as a signature loan, personal loans can be used to consolidate debt, fund personal projects, pay for emergency expenses and so much more.
These loans offer a fast solution when you need cash unexpectedly. Plus, loan approval for a personal loan may be completed in a single day, giving you the funds you need, quickly. Personal loans give you the flexibility to borrow for a specific reason, making it a financial tool that can improve your financial well-being.
How Do Personal Loans Work?
Personal loans allow you to get the funds you need and pay them back within a pre-determined term with a fixed interest rate. First, determine the amount you would like to borrow and the length of the term you would like that fits your budget. Next, find a lender who offers personal loans, such as Travis Credit Union.
Next, apply online or visit one of the lender’s branches. The lender will offer you a loan with the interest rates that you qualify for and the proposed monthly payment. You will need to agree to the loan amount, term and fees. Many financial institutions allow you to sign loan documents via electronic signature to make the process quicker. Some lenders, such as Travis Credit Union, may be able to process your loan the same day. Once your loan is funded, you will receive a check or have a lump sum of cash deposited into your account.
Your first loan payment will be due the month after your loan is funded. The loan will have a fixed interest rate and your payment will consist of both principal and interest. Personal loans can offer lower rates than credit cards, according to BankRate.com.
What to Look for in a Personal Loan?
When researching personal loans, look for one that closely matches your financial needs. Consider the interest rate, length of term, fees and monthly payment. Personal loans typically have interest rates lower than credit cards. Plus, having a fixed rate instead of a variable rate on a personal loan means your monthly payments will remain the same throughout the life of the loan.
Unlike a credit card or a line of credit, you will not be able to borrow any more money from the loan as you pay down the balance. Instead, you will pay down the debt each month until your balance is paid off.
Benefits of a Personal Loan from TCU
Travis Credit Union offers flexible personal loan options that can help you get the funds you need quickly and conveniently. With terms ranging from 36 months up to 60 months and interest rates that are lower than credit cards, a TCU Personal Loan is the smart way to borrow money.
Applying for a personal loan is easy through our online application or at one of our Northern California branches. TCU also offers a pre-qualification tool so you can see the amount of loan you qualify for before you apply, with no impact to your credit. With our quick processing and fast funding, a TCU Personal Loan makes it easy to improve your financial wellness.
How to Apply for a TCU Personal Loan
TCU is committed to empowering you to take control of your financial future. Visit traviscu.org to conveniently apply for a Personal Loan. Our online application is easy to complete by following the prompted instructions. If you would like, you can apply in-person at any one of our branches in 12 Northern California counties. We are open weekdays, and on Saturdays with shorter hours, depending on the branch.
Frequently Asked Questions About Personal Loans:
- How much can I borrow? You may borrow up to $25,000, based on your credit.
- What are the loan terms? Loan terms are available for up to 60 months.
- Do I need to provide collateral for the loan? No collateral is needed.
- What type of credit score do I need to qualify? You will need to have good credit to excellent credit to qualify.
- What documents do I need to apply? We will need documents that verify your identity, income and employment.
- Are there other requirements? Member must be in good standing at TCU and must not be in bankruptcy.
- How long will the loan process take? Funding typically takes a couple of business days, although same-day loan processing may be possible.
- Can I be pre-qualified for a Personal Loan? Yes, visit traviscu.org and review your offers now to see if you are pre-qualified for a loan.
- How can I use a Personal Loan? You may use your personal loan for a variety of things, including debt consolidation, home improvement and other major expenses. With rates lower than credit cards, it may be the best local lending option for you.
Trust Travis when it comes to personal loans. We are also a great place to help you save money. Our promotional Certificates and flexible Money Market Accounts make it easy to save money to help you reach your financial goals. Explore how TCU can help you at traviscu.org.