You may be aware of the many different types of loans out there—from home loans to student loans, car loans, and business loans.
These financial products are meant to help people work towards their goals, invest in their future, or hit the ground running in situations where a lack of finances would be a big obstacle.
A lesser-known but valuable type of loan is the personal loan. Many people use personal loans to consolidate their debt, take a once-in-a-lifetime vacation, improve their homes, invest in their future, or realize personal successes in other ways.
Accessing funds for personal projects or your family’s future can be a game-changer. But not many people are taking advantage of this resource, even though it’s available (and easier to access than you might think!).
Today, let’s talk about the benefits. What are the best and most surprising things you can do with a personal loan?
The Benefits You Can Unlock With Personal Loans
After getting approved for a personal loan, you’ll have access to myriad benefits. Here are just a few of the top personal loan perks we’re excited about:
Accessing funds quickly. Sometimes you need assistance in an emergency, or when a considerable expense crops up suddenly! Personal loans can get approved relatively quickly, making them a good resource for unexpected events.
No need for collateral. Personal loans often don’t require collateral, or are termed “unsecured funds.” This can make personal loans more accessible.
Low interest rates. Personal loans can be a cost-effective way to finance large expenses because they have low interest rates when compared to other types of financial products.
Structured repayment plans. Personal loans come with fixed terms, which makes having a clear repayment timeline easy. You’ll be able to work with your lender to ensure there are no surprises!
Simple application processes. Often, you can apply for personal loans (or at least get started!) online, which makes the entire process a lot more accessible to many.
No prepayment penalties. In many cases, personal loans don’t have any prepayment penalties. This can help borrowers save on interest and pay off their loans earlier.
Potential for increasing your credit score. By submitting payments on time, borrowers may be able to increase their credit scores, which makes it much more manageable to access future financing.
These and other personal loan benefits—such as the peace of mind that can come from using your personal loan funds to reduce stressors, or the enjoyment of investing in your happiness—certainly make them exciting financial products.
However, just as with any other big financial decision, it’s essential to ensure you do your homework and partner with the right provider: a bank that has time for you and offers other financial resources to help you manage your money.
How Can You Get Started with Personal Loans?
Here’s the general process of getting started with personal loans:
Determine how much you need. Your lender will want at least a general idea of what you’re using the loan for. Decide what your plans are and how much you’ll need to achieve them.
Check your credit score. Some lenders may have a credit score threshold to determine loan candidate eligibility. Checking your credit score can give you an idea of what you’re eligible for.
Review your loan documents. To access your loan, you’ll need to provide application documents, and they will need to be accurate. Talk to the experts at your community bank to learn how to fill these out in the best way possible.
Submit your application. This step should be relatively simple if you’ve prepared well and are working with a great lender.
Work with your lender to get your loan approved and set up properly. If your lender decides to approve your loan, they’ll reach out to you and talk about your next steps.
BNC National Bank is Here to Help You Enjoy the Benefits of Personal Loans
As simple as the general process of securing a personal loan is, it’ll pay off in spades to have a lender who helps you through the application and works with you through successful repayment. A small community bank will have the resources and bandwidth necessary to get you started successfully!
At BNC National Bank, we always prioritize getting you the practical information you need to make the best possible financial steps for your present and future. Schedule a meeting with our team today to learn more about what we can do for you!
BNC National Bank, Member FDIC, Equal Housing Lender