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A credit union worker smiling at the person she is helping learn how to use a personal loan

Understanding how to use a personal loan 

Welcome to the world of personal loans. So, what’s the buzz about these flexible funds? A personal loan is like that versatile friend who can help you in a pinch or take you on a dream adventure, depending on your whims. 

Whether you’re eyeing that long-awaited tropical escape, planning a dream wedding, or tackling unexpected expenses, a personal loan has your back. Keep on readin’ to see how a personal loan can be used for various purposes and unlock your door to financial freedom.

1) The standard personal loan 

A standard personal loan is unsecured, meaning it is not backed by collateral like a car or home. With a standard personal loan, borrowers receive a lump sum from a lender and agree to repay it over a fixed period, typically in monthly installments. The interest rate on a standard personal loan is usually fixed, which means it remains the same throughout the loan term, making it easier for borrowers to budget their repayments.

Standard personal loans are versatile and can be used for various purposes, such as: 

  • Debt consolidation
  • Home improvements
  • Travel expenses
  • Medical bills

The loan amount and terms are determined based on the borrower’s credit score, income, and other financial factors. Head over to our rates page to get an idea of what you could end up paying.

2) Consolidating your debt 

Are you tired of playing “Whack-a-Mole” with your never-ending debts? Time to unleash the ultimate weapon — the debt-slaying personal loan. AKA, debt consolidation. If you combine all those pesky high-interest debts into one mighty, manageable monthly payment, you won’t be chasing after countless bills like a headless chicken. 

With a personal loan, you can streamline your finances and conquer your debt mountain like a fearless explorer. Plus, who doesn’t love the sound of saving some shiny coins on interest? 

3) Take out a Home Equity Line of Credit (HELOC) 

Here’s the deal: a Home Equity Line of Credit (HELOC) lets you borrow against the equity you’ve built in your home. Imagine having a magic portal to tap into your home’s equity and unleash it for those thrilling adventures you’ve been dreaming of. 

Taking out a HELOC can help you pay for:  

  • Epic home renovations  
  • That whirlwind vacation 
  • Your next passion project 
  • Any piled-up, pesky expenses 

A HELOC can make it all happen! But remember to select your HELOC wisely and make timely repayments, so you can continue to harness its powers for future endeavors. 

4) A personal line of credit 

A personal line of credit acts like a credit card, giving you access to funds when you need them. Unlike a traditional personal loan, where you receive the entire loan amount upfront, a personal line of credit from White River Credit Union allows you to apply for a specific credit limit and draw on it incrementally. 

This means you’ll always have the right amount to cover your expenses, whether you’re paying contractors, purchasing supplies, or completing an exciting project. And guess what? No collateral is required, making getting the financial support you need even easier. Our experienced loan officers will guide you through the simple application process. Once approved, you’ll be free to access your funds whenever you need them. 

Plus, with no annual or transfer fees, and interest only on the amount you use, managing your finances has never been more convenient. 

5) The Shared Secured Loan 

A Shared Secured Loan is a fantastic financial tool that allows you to leverage your savings to secure a loan for your personal needs. Here’s the scoop: when you deposit funds into a shared savings account with a lender, you can borrow against that amount, typically at a lower interest rate than traditional loans. This unique arrangement allows you to leverage your savings while enjoying favorable borrowing terms.

Whether you’re looking to build your credit, cover unexpected expenses, or tackle a dream project, a shared secured loan offers a win-win solution. Your savings remain intact and continue to earn interest while you access the funds you need. Psst, you can have your cake and eat it too! 

Securing a personal loan with White River CU 

Applying for a White River Credit Union Personal Loan is a breeze! Our user-friendly application process places you in the driver’s seat, so you can navigate your way to financial empowerment. Simply head to our website and find the “Apply Now” button for personal loans. 

From there, you’ll be guided through a straightforward online application, where you’ll provide some basic information about yourself and your financial situation. Our loan experts will review your application with care, aiming to get back to you with a decision as quickly as possible. No fuss, no hidden fees, just a seamless experience tailored to your needs. 

Better spending habits are ahead 

Explore how a WRCU Personal Loan can help you spend smarter. Reach out to our team of experts by visiting our contact page or call/text us at (360) 825-4833

© 2020 White River Credit Union