Personal Loans

A personal loan is exactly like it sounds - a loan given for a personal expense, either planned or unplanned, that doesn’t require a bigger loan like for a car or a home. The main advantage of personal loans is that they offer a degree of flexibility, as opposed to the stricter timelines and limited usage of a mortgage or auto loan.

Personal loans work like many other types of loans - you simply fill out an application that specifies the amount you need a loan for, and what the money will be used for, and if you’re approved you’re free to use the money for almost anything you need! The loan is repaid on a set schedule every month, at the same amount every time, just like any other loan would be, but once the money is in your hand you can use it to pay for nearly any financial need you may have.

You may think that qualifying for a Personal Loan is difficult, or that it can only be used for certain things. A personal loan is just that – a PERSONAL loan to be used for whatever you see fit. However, that doesn’t mean that we won’t ask you what the funds will be used for. Lenders need to know what the intended purpose is for the loan when considering the approval. Depending on how the funds will be used, we may suggest a better option or may even advise against it. For example, you can’t take out a personal loan to fund the down payment on a credit union home loan. In that instance, we would help you look for other options.

The main benefit of personal loans is their versatility. Personal loans, in most cases, can be used to pay for anything that may come up. While more specialized loans are designed to pay for things like homes, vehicles, and even medical expenses, personal loans can be spent on nearly any financial need you may have. Common uses for personal loans include consolidating your debt or credit card bills, paying for an unexpected expense (such as replacing an appliance in your home or getting emergency car work done), or even just funding a dream vacation. The other big advantage of personal loans is their flexible terms. Personal loans can be as small as you need, and offer the ability to borrow the exact amount you need. This can come in handy when the expense isn’t big enough to warrant a larger loan and can offer you much greater flexibility in how much you borrow and when it needs to be repaid.

By refinancing a loan, you use a new loan at a lower interest rate to pay off an existing loan, costing you less money in the long run. If you have a personal loan already but you’re having a hard time paying it off due to high interest rates, Genisys may be able to help you refinance your personal loan and save you money!

A personal loan will show on your credit report and be listed simply as an unsecured closed-end loan. This loan will not affect your credit score any differently than opening up a secured loan for the same amount and term (i.e. a car loan). If you open a personal loan as a form of debt consolidation, there are a few steps to be aware of that may affect your score. Closing all credit cards at one time may bring your credit score down. Two things that affect a person’s credit are the available amount of credit and the age of the oldest credit account established. If these credit lines were to be closed to zero all at once, your credit score might go down. If possible, it would be best to gradually close the cards in order from newest line of credit to the oldest line of credit. Keeping the oldest line of credit open, even with a zero balance, shows creditors that you have been responsibly managing this credit line for several years. This will help maintain or even increase your credit score.

Just like most loans, the rate is first and foremost based on your credit score. Since personal loans are typically unsecured, that will make the rate higher than collateralized loans like auto loans or mortgages. The amount being borrowed and the term of the loan can also be factors in the rate of your personal loan. A fixed rate credit union personal loan usually has a lower rate than a credit card. A credit union personal loan from Genisys Credit Union is an unsecured loan, meaning that collateral (like a car or some other tangible piece of property) is not required for approval.