If you need a large sum of money, consider applying for a personal loan. Although this type of financial solution has a higher interest rate, the approval process is quicker, making it an optimal choice for people with urgent monetary needs. Personal loans have fixed repayment terms and interest rate, meaning you’ll always know the conditions of the agreement. If you’re unsure if a personal loan is right for you, here are several instances when one may come in handy.

Why You Should Take out a Personal Loan

1. Consolidate Debt

A personal loan can help people who have extensive credit card debt or are juggling multiple loans with varying interest rates and terms. A personal loan will grant you enough money to pay off multiple debts in one fell swoop, allowing you to focus on a single payment to recover the loan. This tactic is especially helpful for people who have difficulty managing payment schedules and are often penalized with late fees.

2. Cover Unplanned Expenses

It can take time to build your savings, and medical procedures, emergency dental work, and other unplanned expenses can put a strain on your finances. A personal loan will cover large necessary costs so that you can return to financial normalcy after the unexpected hiccup.

3. Doesn’t Require Collateral

Unlike car title and mortgage loans, personal ones are unsecured and don’t require collateral. Lenders will check your credit score and history to determine what interest rate and repayment term to offer you. This simple application process makes personal loans ideal for young adults who are starting their life and may not have a lot of collateral.

4. Tackle a Home Improvement Project

Whether you need a new roof or want to remodel your kitchen before selling, a personal loan can pay for expensive, but necessary, home improvements. This type of loan is suitable for people who don’t have equity in their homes.

If you want to apply for a personal loan, contact the helpful team at Hawaii County Employees Federal Credit Union in Hilo. As a member-owned institution, they offer a wide range of low-cost loans to county employees and their families, including mortgage, school, and car loans. Learn more about membership benefits online, or call (808) 935-2969 to ask about enrollment eligibility.