With credit card interest rates at an all-time high, many people are having trouble taking care of their bills and expenses through using these cards. Today, people are looking for alternatives to credit card debt and opting to seek help from their banks instead. Through Personal Loans in Hollidaysburg, PA, you can obtain a loan that will meet your needs and give you a lower interest rate than credit card companies are willing to offer. This can save you tons of money in interest payments, allowing you to secure the money you need, without the hassle.
What are the Types of Personal Loans in Hollidaysburg, PA?
There are basically two different types of personal loans banks will offer customers. The one you choose will be based on your credit score and the amount of money you need. Each one offers its own benefits, so it is important to understand what to expect from each loan, so you can make an informed decision on your finances.
Secured loans — This type of loan will involve your bank asking you to secure your loan through putting up an asset. This is often either your house or your car. The property is put on the loan and in the event you are unable to repay your loan, the property is seized. The benefit of these types of loans is that most banks or lending institutions are willing to loan more money. You should be very careful in making a decision to secure your loan. This puts you at risk of losing your property and should be thought on carefully.
Signature loans — With good credit, you can borrow money simply with your signature. If you have a good relationship with your bank, you may be able to obtain this type of loan fairly easily, provided your credit score is good. The lower your credit score, the higher your interest is going to be on the loan. The main drawback of this type of loan is that you will not be able to get as much money as you would if your loan were secured.
If you are in need of a loan and want to learn more about your options, contact ARC Federal Credit Union. They will be glad to assist you in obtaining the best loan type to meet your needs.
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