Because there are so many reasons you might need it, better lenders understand that personal financing should be flexible and affordable, with options that help you customize the financing to suit your needs.
While credit cards are what many borrowers turn to, other options may be better for personal financing, including signature loans and personal lines of credit, which can provide a more appropriate option for financing larger expenses. Here’s more about these options offer and how they can meet your needs.
When you need a lump sum of cash, a signature loan is the way to go. While signature loans may not be as convenient as a credit card, it typically offers lower financing rates, making it a more affordable option. This means signature loans are great for major purchases, debt consolidation, vacation expenses, holiday expenses, and much more. They also require no collateral. Additionally, with a signature loan, you get a predictable monthly payment, which makes them budget friendly. Here at PSFCU, our local lenders can also provide funding for signature loans quickly, making them fast and easy.
Personal lines of credit
Another flexible choice, personal lines of credit deliver convenient access to funds up to a pre-approved credit limit, similar to a credit card, but more affordable. Funds typically can be accessed by check/debit card or by debit card/check, as ours are here at PSFCU. The credit line will remain available to you without you having to re-apply. With a personal line of credit, you can use the funds for just about anything, and you only have to finance what you use, instead of the entire credit line amount
How to shop for personal financing
When shopping for personal financing, it’s important to consider a variety of factors before making your choice, including:
- Type of financing needed. For example, ongoing financing would be more appropriate for a home improvement project that will take place in stages, while a lump sum loan is more suited to an appliance purchase.
- Service. Because they make lending decisions locally, lenders based in the community are able to respond quickly to your application and service your financing locally.
- Fees. Check the fine print to ensure you’re not going to be paying hidden fees. At PSFCU, we have no hidden fees for any of our personal financing solutions.
- Total financing costs. Compare financing rates and total costs of the solutions you’re considering to see which is the more affordable option for you. Examining rates alone may not be enough if you’re weighing a lump sum loan and a line of credit.
Have questions about personal financing? We can help with that. Give us a call at 626.351.9651 and we can review your goals and advise you on the solution that’s right for you.