Applying for a Loan? Here’s how

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Research Isn’t Only for School

Even at one credit union, there are many different loans offered: personal loans, vehicle loans, student loans, revolving loans, fixed-term loans, etc. While you will most likely have options, it’s important to remember that each loan has different benefits. Depending upon what you need, you might find a better deal with a loan that you didn’t initially consider. For example, if you’re looking to pay off credit card debt, you could possibly use your car; if your vehicle has available equity (i.e., money that you don’t owe on it), you could refinance that equity with an auto loan at a much lower interest rate, saving
yourself money.

Review every loan product and what it can offer. If you’re uncertain of what will work for you, contact a representative at your local credit union. Together, you’ll find a loan that best suits your needs.

Dust off Those Math Skills

Who knew applying for a loan was similar to being a student? When you get a loan, you’re borrowing money from a financial institution with interest. Before applying, make sure you calculate the amount of interest you’ll pay while having the loan.

If math isn’t your strong suit, don’t worry. There are plenty of free loan calculators available. Try the calculators on our website at msufcu.org/calculators. After inputing information about the loan you are considering, you’ll be able to determine how much your payment will be, how much you can afford and compare different loans.

Look at Your Financial Report Card

We call it your financial report card because it shows how you’ve managed your loans. If you’ve made your payments on time, your credit score will be reflected positively. A higher credit score means that you’ll receive a lower interest rate and pay less interest overall on your loan. Try using annualcreditreport.com to view your financial report card for free.

Applying for a loan can seem like a daunting task—but if you use these steps, it doesn’t have to be.

 

Deidre Davis is the Vice President of Marketing and Communications at MSU Federal Credit Union. MSUFCU’s headquarters are at 3777 West Road East Lansing, MI 48823. Contact Deidre at deidre.davis@msufcu.org or (517) 664-7877.

 

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