What Do You Need Loans For?
Posted on March 26, 2018
Topic Categories: Banking, Consumer Help
By Jim Keating - Consumer Loans Manager, Cinfed
When most people think of loans, they think of large purchases like homes or vehicles. While mortgages and auto financing are important, loans can be used for other needs as well – some that may not be as obvious.
Like many financial institutions, Cinfed offers a variety of loans that meet our members’ needs – some of them short-term, others longer term. Personal loans, or as we call them, Signature Loans, can help you cover the cost of those needs.
Here are a few of the most common, yet overlooked, reasons to apply:
1. Improve Your Credit Score
Making regular payments to a trusted financial institution and lender, you’re essentially proving that you’re a reliable and trustworthy individual that can be counted on to lower your debt. This will have an impact on your credit score. Once the financing is completely paid off, your score could go up even further, helping establish a history for future lenders.
2. Cover the Cost of Home Improvements
After financing a home purchase, you may need money to handle renovations and improvements. Applying for financing from your credit union is the perfect way to cover the cost of renovations without destroying your monthly budget or forcing you to delay renovations until your savings have built up. All you need is an estimate for the cost of the project, and your financial representative can work with you to find the right financing package.
3. Pay Credit Card Debt
It may seem counterintuitive to borrow money to pay off existing debt, but it’s one of the most common reasons why people speak with lenders. Credit cards have high interest rates that can make even small amounts of debt far larger than they seem on the surface. Personal loans, on the other hand, offer longer repayment periods with lower interest rates, breaking down your monthly payments into more affordable increments. Over time, you’ll pay less in interest when you work with a credit union than you would on your credit cards.
Signature Loans from Cinfed offer versatile solutions for members’ financial needs – even short-term ones like vacations, school tuition and the holidays. Many variables need to be considered, so an important first step is to talk with a financial professional at any branch location.