Member Question: How can I quickly gather funds in a pinch? What can I do? Help!
Azura Answer: Life often presents unexpected financial challenges, such as medical bills, car issues, or overwhelming debt. In such times, a personal loan can be a lifeline. Personal loans don't require collateral, meaning no property secures the loan's value. Are they the right choice for you, and if so, how can you secure one?
Let's explore four essential questions to think about before getting a personal loan.
1. What's my credit score like?
Thoroughly assess your credit score, which you can obtain annually at annualcreditreport.com. A higher credit score makes finding a personal loan with a reasonable interest rate easier. If your score is lower, consider a secured loan with lower rates, where you offer collateral for security, often a savings account. However, ensure timely payments to avoid repercussions.
2. How do I initiate the application?
The application process varies in duration and requirements. Some take weeks, others mere hours, with differing application fees and interest rates. Essential documents include:
- Identification (like a Social Security card or state-issued ID).
- Proof of income (W-2 forms, bank statements, or pay stubs).
- Proof of address (recent mail or property lease).
Be transparent about job loss to avoid taking on more than you can afford.
Ready to apply? Let's get started!
3. What pitfalls should I be cautious of?
Beware of scams targeting those in need. Phishing scams involve fake loan companies, while advance fee loan scams trick you into paying a "loan fee" before vanishing.
4. Where should I seek assistance?
Deal only with trusted companies, avoid those with hefty final payments or early payment penalties, and steer clear of potential scammers.
Azura Credit Union offers personal loans with competitive interest rates, no collateral required, and no prepayment penalties. If you are considering a personal loan, contact our member service representatives or loan officers. Call, click or visit today!
