Credit Union Loans for Emergencies
Nobody wants to be in the red, which is why most people try their best to be diligent in managing their finances. However, an emergency expense such as a large medical or car repair bill can still take you by surprise no matter how prepared you are. Most Americans don’t have extra cash set aside to cover such a large expense in a pinch. Luckily, it is easy to apply for loans for emergencies.
What Loans Can You Use for Emergencies?
The most common type of loan you can use for unexpected financial emergencies is an unsecured personal loan. This means that you will likely need no collateral or put up any of your assets to qualify.
Some lenders may also offer secured personal loans, which require you to put up collateral in exchange for better rates. When choosing which lender you would like to borrow money from, it is important to evaluate the pros and cons. Consider how much you can borrow, what the minimum credit score is, and more.
Why Borrow From a Credit Union?
Unlike other lenders, credit unions are not-for-profit organizations that aim to serve the best interest of their members. As such, they are exempt from paying any corporate income tax on their earnings. They pass on the savings to their members through better interest rates and lower fees. You can often get the best deal when borrowing from these organizations.
Things to Consider
When choosing which emergency loan to use, it’s important to shop for the deal that works best for you. You have to consider how soon you can get the amount you’re borrowing, how high the interest rate will be, and how favorable the repayment terms are. Additionally, you have to take note of the minimum credit score requirements as well as additional fees such as late payment penalties.
Get a Loan From a Credit Union
OnPath Federal Credit Union aims to help you cover your financial emergency through personal loans with favorable terms and low rates. To get started, apply for a loan today.