From car repairs to an unexpected college tuition balance, life is full of financial emergencies. When funds are tight, a personal loan can cover these expenses. Before taking out one, it’s helpful to know what questions to ask first. Here are several to keep in mind.

4 Personal Loan Questions to Ask First

1. How much should I borrow?

Determine exactly how much you need to borrow and stick to that amount. Going over can take longer to pay off the personal loan. Resist the temptation to borrow more and commit to paying the balance off as soon as possible.

2. How long will it take to pay off the loan?

The payoff period typically depends on the lender, the loan and the amount borrowed. Your loan agreement should clearly state the deadline to pay the balance off. Most lending options arrange for the borrower to make monthly payments. You can always pay the entire balance before the final due date. Ask if there are any early prepayment fees for doing so.

3. What are the requirements to take out a loan?

The main qualification is showing the lender the ability to repay the personal loan. This includes providing proof of employment or steady income. Your credit score is typically reviewed to determine how responsible you’ve been with other financial obligations. The application will generally list all of the eligibility requirements.

4. Are there fees associated with the loan?

There may be certain processing fees to secure the loan. These include an application fee once the loan is funded for just $35. Additional fees for MVD may apply.

There may be times when a personal loan can come to the rescue. Estacado Federal Credit Union in Hobbs, NM, is the financial institution residents and business owners turn to for affordable and convenient loans, checking accounts, online banking, and much more. As a credit union member, you’ll enjoy competitive interest rates and friendly service. It’s why the cooperative’s motto is “Where you’re more than a number, you’re a member.” Call (575) 393-1596 to learn more about loan options. Visit the website for information on products, services and becoming a member.