Are you considering a loan for a new car, a household project, or for a similar costly expense or project? You need to weigh and consider various factors before making the decision to seek out a loan with your local credit union.
Factors you need consider about the current status of your personal finances:
- Is a loan really necessary for this project, vehicle purchase, vacation, etc?
- Your credit score – is a healthy score, too low or do you have a credit history?
- Have you had a recent or past bankruptcy?
- The status of your repayment history – do you have a poor repayment history, your bills are in collection, or you have recently bounced checks?
- Have you recently had a vehicle repossessed or home foreclosure?
- How much money do you want to borrow?
- How much money can you actually borrow?
- Should you consider a co-signer for the loan?
Factors to consider about the make-up of the loan:
- From where will I obtain the loan?
- What is the best type of loan for me?
- What are the requirements of the loan application process?
- Is there a cost to apply for the loan?
- How much is the lender will to loan me?
- What happens if I am denied a loan?
- Once I have the loan, is there a way to cancel it?
- Where can I find the best interest rates?
- How will I receive the loan monies?
- What is the repayment length and expectations of the loan?
Knowledge is power, so do your homework. Research your loan options and ask questions of yourself and loan counselors before borrowing money for that new car, home project, or vacation!
Do you still have questions, comments or concerns about whether a loan is a good idea for you? Please contact your local Credit Union representative for answers to your question or loan counseling and recommendations.