At some point in time, you may find yourself needing financial assistance to help you navigate life. Whether it’s to complete a home repair, finance a family getaway, or pay for an unexpected medical expense, a personal loan may be your best option. You might also consider a personal loan to consolidate existing debt into a single payment with a lower interest rate.
Depending on your needs, a signature loan, line of credit, or consolidation loan could be the best option given your unique circumstances. While each provides access to funds, they work very differently. Here’s what you need to know about each option:
Signature Loan
A signature loan from Metro Credit Union is a fast and easy way to get funds and does not require any collateral to open. This type of loan can be used for a variety of expenses with a wide range of rates and terms available to fit your financial needs.
Debt Consolidation
Credit cards are convenient to use, but if you find yourself struggling to make multiple credit card payments each month, you might want to consider consolidating your debt. When you convert credit card debt to a personal loan, you may pay less in interest, and you have a fixed repayment period while making a single payment for multiple credit card debts.
Line of Credit
A line of credit is a preset borrowing limit that can be tapped into at any time. You can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit.
Your Credit Score
When applying for a personal loan, the first thing that matters is your credit score. Just like a report card describes what kind of student you were, your credit score tells credit unions what type of borrower you are. It indicates how well you’ve repaid loans in the past and how likely you are to repay a loan in the future. Your credit score can determine not only whether you get a loan but also how much you pay in interest. A better credit score can save you hundreds or even thousands of dollars in interest. Each quarter, we provide our members with updates on their FICO® Score, and you can access it via online banking under the tools section.
To help you understand what type of loan will meet your unique needs, visit our Resources page at metrofcu.org where you can find links to financial calculators, blogs, member education tools, and Save and Succeed, Metro’s personal finance program. Once you’re ready to move forward, visit our Personal Loans webpage and click Apply Now.
