A personal loan can be a great route to increased buying power, a way to handle financial emergencies, or to get your existing debts in order. However, the loan application process can be confusing, and many borrowers find themselves overwhelmed by questions. Below are answers to some frequently asked questions about taking out a personal loan.

Answers to Your Common Queries About Personal Loans

Do You Need Perfect Credit to Qualify for a Loan?

While your credit rating has a major impact on your interest rate, fees, and ability to get funding, it doesn’t have to be perfect. Credit unions and other lending institutions offer a variety of products, with options for borrowers with different financial situations.

Will Consolidating Debt Reduce My Payments?

Depending on your credit history and debt load, consolidating your accounts with a personal loan can substantially reduce your costs. However, do the math before signing, as a lower interest rate and longer term can actually cost more over the life of the loan.

What Should I Watch For When Applying for a Personal Loan?

The annual percentage yield is one of the most important factors to watch out for, but other variables impact the cost of borrowing. Before signing, check the total cost, which will include any fees or expenses you’ll be expected to pay.

Is It Better to Borrow From a Bank or a Credit Union?

Banks and credit unions have differing priorities, which shapes their policies and the products they offer. While banks are dedicated to turning a profit, credit unions are committed to serving their members, which makes them a better choice for almost any loan.

Whether you’re shopping for a personal loan or plan on opening a savings account, Mohave Community Federal Credit Union in Kingman, AZ, is a financial partner you can trust. For over 60 years, they’ve been providing their members with a complete range of banking services, integrity, and personalized service. To become a member and apply for a loan, visit their website now or call (928) 753-8000.