Where To Get A Loan: 5 Places Where You Can Borrow Money

Wednesday, October 20th, 2021
stack of United States currency paper money

When you need a loan, it can be stressful not to know what your options are. This is true whether the loan will help you pay off a debt, purchase a vehicle, or just make ends meet. To complicate things, it can be hard to find a lender that will give you the loan you need with rates and terms that work best for your situation. You actually have a lot of options for getting a loan, so it is important to know which one is right for you.


Banks

This is traditionally where most people get loans. Some banks offer special perks to their customers, especially if they have been there for a while. These could include no loan origination fee and lower rates. All perks will depend on your bank and how they work with existing customers.

Many large banks don’t offer any special deals at all, even if you have been with them for a long time. Also, they may have strict credit rating requirements, so you might not be able to get certain types of loans.

Credit unions

Fortunately, there is one option that provides information in an easy-to-use format and is great for loans: credit unions! Local credit unions offer lower interest rates than banks, flexible repayment schedules, personalized service, and so much more. Since there is no large corporation behind them, they can support their members and offer better rates.

Local credit unions come in all different shapes and sizes so it is important to do your research before you choose one. You should always check out the services that each provides as well as what rates are offered on their loans.

When looking for a credit union, remember that you may have to qualify for membership. This means that you have to be a part of certain groups or organizations, or you must simply live in a specified area. The best way to find the right one for you is by asking friends and family members for recommendations in your area. You also can check local business listings online and look at reviews and ratings.

401(k) retirement account

Some 401(k) plans allow for you to take a loan out on them, with certain restrictions. This can be a good choice if you are in an emergency situation without any other options, but it is important to note that the loan must be paid back with interest. This means your retirement account will take longer to grow and accumulate funds for when you retire.

If you decide this is the right option for you, make sure to pay back the loan within the specified time period. You will also need to be aware of tax implications and any fees that come with this type of loan.

Payday lenders

These businesses usually give out short-term loans that are less than $500. They have a bad reputation because the interest rates are high and they often trap people into debt who can’t afford to pay the lender back. This is why it is best not to use a payday loan, even if you need money for an emergency or other reasons. You could end up paying more than double what you were given.

Online lenders

These are becoming more popular, especially because of social distancing and promises of fast cash. However, this type of loan is sometimes more expensive than traditional options and has fewer protections for borrowers. In addition, online lenders may ask questions about your financial status without fully understanding your situation because they are so removed from it. You may run into issues because there is no person you can speak face-to-face with. Also, you may not be able to trust the source of a fast loan that promises too much to be true.

Tips for getting a loan

No matter which type of lender you choose, you will need to know HOW to get a loan. Your first step should be to ask for help from the lender. They can and should give you all of the information you need to make an informed choice. Here are some other helpful tips to keep in mind.

  1. Make sure you ask for all of the information before making a decision. This includes details on what rates are offered, fees, protections, and more.
  2. Choose a lender that is trustworthy and will not take advantage of your situation or try to deceive you with false promises. Your lender should care about your financial situation.
  3. Know which type of loan suits your needs best.
  4. Shop around for options. It doesn’t hurt to ask a few lenders about their options and to get a feel for how they will work with you.
  5. Never borrow more than you can afford to pay back.

Need a loan? Visit BFCU!

At Borger Federal Credit Union, we provide a variety of Loans including auto, RV, personal, and home equity loans. We truly care about people over profit and will work with you to provide the best services for your unique needs.

If you would like to learn more about working with us, call (806) 273-9506 today. Becoming a Member is easy: if you live, work, attend school, or worship in Hutchinson, Carson, or Gray Counties, you are eligible to join!