Personal loans can be used for many different purposes. Consolidate debt (like a mortgage or high-interest credit card), make a big purchase, or pay off an unforeseen large expense. One of many types of loans you can borrow from North Country Savings Bank, personal loans have the flexibility to be used at your discretion. However, these loans have strict qualification requirements and a structured repayment plan. At North Country Savings Bank, our Loan Experts take all aspects of your financial situation into consideration to determine if a personal loan is right for you and get you the best rate available.
Your Personal Loan Questions Answered
If you're thinking of taking out a personal loan, you likely have a lot of questions. That's good! There are many questions you should ask yourself before applying for a personal loan. Luckily, the loan professionals at North Country Savings Bank can help you answer these questions, starting with these three:
1. Do I really need a personal loan?
A personal loan may not be the best fit for your financial situation or the expense at hand. Make an appointment with a Loan Expert at NCSB and learn about all the financing options available to you.
2. Is this purchase necessary?
Unforeseen expenses happen. A major appliance breaks, or your vehicle needs an immediate major repair. For life's surprises, a personal loan might be the solution. But what about voluntary purchases? Loans come with interest, meaning you end up spending more than you initially needed in the end. Sometimes, a personal loan is the right choice. In other cases, taking time and saving up might be a better choice.
3. Can I afford to take out a personal loan?
The initial payout from a personal loan is great, but then repayment time comes. Before you apply, sit down with one of NCSB's Loan Experts and review your budget. They will help you determine if you can afford to pay your loan back within a reasonable time frame.
Once you have determined that a personal loan is right for you, there are more questions that must be answered. But don't worry! The experienced loan professionals at North Country Savings Bank will guide you through every step, and answer your questions, such as:
How much should I borrow?
Most lenders offer a cheaper APR on a larger loan, and each lender offers different interest rates depending on how much you borrow. Sometimes, it's in your best interest to increase your loan amount slightly in order to get a better interest rate.
Will I be covered if I become ill or unemployed?
Most lenders have a Payment Protection Insurance plan (PPI) to cover you in instances such as this, but check the policy carefully and ask questions before making a commitment.
Can I pay my loan off early?
It's hard to believe paying your loan off early could be a bad thing, but some lenders add penalties to cover the interest fees they lose out on. Fees can be as high as the equivalent of two or three months' interest, so make sure you know the terms of your loan before you pay anything off prematurely.
What happens if I get turned down for a loan?
Getting turned down for a loan isn't the end of the world – these things happen! But it's important to know why. It could be that your credit rating is poor, or that you are asking for too much money. Find out why you were turned down so you can adjust your request and try again if possible.
NCSB Personal Loans
Looking for a trusted lender for your personal loan? North Country Savings Bank is an experienced lender you can trust. Enjoy the following benefits when you take out a personal loan from NCSB:
- Use funds at your discretion
- Get competitive rates and flexible terms
- Pay off your loan early without penalties
- Enjoy peace of mind with Automatic Loan Payments taken directly from your North Country Savings Bank checking account, or an account from another financial institution
- Apply easily online
The Facts About Personal Loans
Before you head to the nearest North Country Savings Bank branch, consider these five fast facts to decide if a personal loan is right for you.
Personal Loan Facts
1. Personal loans are unsecured. This doesn't mean that personal loans are unsafe – it means that you aren't required to use assets such as your house or car as collateral. This is one of the reasons why personal loans have a strict approval process.
2. Personal loans have a fixed amount. Depending on your financial standings, you could get approved for a personal loan for anywhere from $1,000 to $50,000. The better your financial standings, the more money you can borrow.
3. Personal loans usually have fixed interest rates. Fixed interest rates mean the interest rate on the loan will not change for the life of the loan – no matter what. The better your credit score at the time you take out the loan, the lower your interest rate will be. While some personal loans do come with variable interest rates, payments on these loans can fluctuate, making it harder to budget your payments.
4. Personal loans have a fixed repayment period. Personal loans have a limited lifetime, and the term length of your loan will help determine your monthly repayments and your interest rate. Longer repayment periods result in lower monthly payments but higher interest rates.
5. Personal loans affect your credit score. Generally, personal loans are reported to the credit bureaus. Your loan, and any inquiries from applying from the loan, are then reflected in your credit profile and affect your credit rating. Late payments can also affect your score, so be sure to make all payments on time.
Sometimes, we need to borrow a little in order to make the most of our future. Personal loans can be the perfect solution for funding big dreams or handling the unforeseen, but they are also a serious financial commitment. Before you apply for a personal loan, visit your local North Country Savings Bank branch and find out if a personal loan is right for you.