Many people turn to credit cards when financial fires need to be put out quickly. While credit cards can serve an important purpose for helping out in financial jams, they aren’t always the best options for people to consider.
In fact, there are other options that offer far more favorable experiences when you find yourself in need of fast cash to help resolve one of life’s little emergencies. One of these options is a personal loan.
A personal loan can be used for any of the following, and so much more:
Make home improvements
Pay off higher-interest debts
Manage unexpected financial curveballs when life throws them in your direction
Understanding the opportunities personal loans represent can help you take full advantage of the services the credit union provides members.
While some people find the convenience of credit cards in these situations alluring, there are distinct benefits that make personal loans far preferable in the long-term. These are just a few of the benefits of personal loans worth considering when exploring your options for fast access to money in an emergency.
Lower interest rates than most credit cards. Interest rates can have a significant effect on your financial situation. What you may not realize is that personal loans offer a real, lower interest option to credit cards. Even better, you can usually apply for the funds and receive a response quickly, letting you know if you qualify or if you need to consider other alternatives.
Fixed interest rate. Most credit cards today have variable rates that can rise unexpectedly, easily doubling their rates, or more, once the debt is finally repaid. Personal loans typically have a fixed interest rate that helps provide some consistency when planning and paying for the loan. It’s a huge boon to borrowers that can help them pay off their loans quickly and efficiently.
Set payments and a light at the end of the tunnel. The problem with credit cards is that it’s like the football Charlie Brown is trying to kick. At first glance it looks to be an easy kick with the field goal in sight. But then, at the very last minute, the ball is pulled away and the finish line looks even further out of reach. That doesn’t happen with personal loans. From the beginning, you will understand how much your payments are, when they must be paid, and when the loan will be paid in full. Credit cards can take years to pay off by making minimum payments, and some feel as though they’ll never be repaid.
Opportunity to increase your credit score. Even better, as far as bonuses go, when the personal loan is paid off, your credit score generally increases.
Personal loans are a great alternative to credit cards when you need to manage an unexpected bill or financial hiccup.
To learn more about our personal loans and how they can help you when emergencies strike, contact your local branch.
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