A personal loan can help improve your credit score if you make all your payments on time. We want to help you understand what a personal loan is, how it’s financed and what you’re buying with the help of a personal loan, as well as making suggestions on what kind of personal loan would fit your budget and needs.
What Is a Personal Loan?
Personal loans are used by people who make their own payments on their home mortgage. Borrowers are typically limited to a maximum of one personal loan per year. A personal loan is not the same as a mortgage loan, which means it can’t be combined with a mortgage.
In most cases, a personal loan is for either a new home or for existing homes that have been repossessed or demolished. The terms of the personal loan may also be different from what a home is worth. A lender will want to know what kind of home you want, the type of construction and what the current selling price of the home is.
When You Use a Personal Loan
Personal loans are often available to home buyers as long as the borrower is able to make monthly payments. The borrowers pay the interest while the bank collects the loan payments. A lender will contact you about your loan status and make a loan agreement to include. Once you accept the terms of the loan agreement, the lender will send the money to you. Most personal loans are 30 days to 60 days in length.
If you are thinking of getting a personal loan, we suggest using a personal loan calculator before you make a decision, this way you’ll know if the monthly payments are double on your end. If you’re a businessman or entrepreneur, then you can use WECU to improve your cash management and see how they can help with your finances.