Is a Lanco Federal Credit Union Personal Loan Right for You?
Imagine it’s a crisp morning in the fall. You are busy checking items off your to-do list: pay the bills, clean the kitchen, and do the laundry. As you’re busy scrubbing the kitchen sink and listening to the hum of the washer and dryer, an odd noise from the laundry room gets your attention.
Upon further investigation, you discover that your washer isn’t progressing through its normal cycle and appears to be stuck. You try to reset it, but the washer won’t budge. You take the laundry to the laundromat to finish it while deciding what to do about your washer. Since you just paid the bills, you know there’s not enough money to call a technician to fix it.
So, what do you do? Sure, you could go to a yard sale or online sales page to find a used washer, but you don’t know the condition or how long it will last. Buying a new high-efficiency washer sounds appealing, but you fear your dryer will also soon stop working since you purchased the set at the same time about ten years ago.
We’ve all been in situations like this one, and many others like it, when we need to make a big purchase soon but don’t have the savings to pay for it. One option in this situation is to apply for a personal loan at a financial institution. These types of loans can fund unexpected expenses like this washing machine fiasco, pay for a planned life event like a wedding or honeymoon, or consolidate debt, among other reasons.
When you choose Lanco Federal Credit Union’s personal loans, you get a funding option with a competitively low-interest rate and a way to simplify your budget. Become a credit union member today to get started and see why Lanco FCU is the best credit union to get a personal loan.
What Is a Personal Loan from a Credit Union?
A credit union personal loan is a flexible borrowing option like a bank’s personal loan. However, since a credit union is a not-for-profit institution, earnings are returned to the customers in the form of lower interest rates. Personal loans are usually unsecured, meaning there is no car to repossess like in an auto loan or home to recover in the case of a mortgage or home equity loan.
What Can I Use a Personal Loan For?
Personal loans can be used for various circumstances, such as when your washer unexpectedly breaks. Other uses for a personal loan include:
- Adoption fees
- Consolidating credit cards
- Emergency funds
- Home repairs
- Household appliances
- Moving expenses
- Paying off high-interest debt
- Paying off or down medical bills
- Recreational vehicles
- Weddings and honeymoons
What Type of Credit Union Personal Loans Can I Get from Lanco FCU?
Lanco FCU offers three types of personal loans: a traditional personal loan, a personal line of credit, and a share-secured loan. Each has its own nuances, so choose the one that works best for your needs.
Our credit union personal loan is what you expect from a traditional type of loan. You borrow a specific amount of money for a specific length of time. This option is ideal for those who want to cover a large expense, such as a new washer and dryer, or consolidate debts. Loan amounts range from $500 to $20,000* with terms between 12 and 60 months, depending on the amount you borrow.
With a personal loan, your annual percentage rate (APR) is fixed, so you’ll have the same monthly payment throughout the life of the loan. Our current personal loan rates range from 7.99% to 16.99% APR*, based on your credit score.
Personal Line of Credit
A personal line of credit is a second type of credit union personal loan from Lanco FCU. This version of a personal loan is an open-ended loan, meaning the funds are available for you to borrow whenever the need arises. This loan option is a fantastic way to have an emergency fund available when you need it for specific purposes.
Like a regular personal loan, you can have a credit limit of $500 to $20,000*, depending on your credit history and eligibility requirements. Your monthly payment will vary as your loan balance determines it. Your rate is also variable and tied to the Wall Street Journal Prime plus a margin depending on your credit score.
Share Secured Loan
When you have an unexpected expense that will deplete your savings if you pay it, a share secured loan may be right for you. It’s also ideal for those new to borrowing who must establish a credit history. It has fast approval and a great personal loan interest rate, especially compared to big banks.
The loan amount depends on the amount you have in your savings account. For example, if you have $10,000 in your savings account, your share secured loan can be for as much as $10,000. As you pay down your loan, the matching funds in your savings account become available again. The loan terms for this credit union personal loan are one to five years, and your interest rate is fixed at the savings rate plus 2.50% at the time of signing.
Which Credit Score Does Lanco FCU Use to Determine Creditworthiness?
As with any borrowing option, we look at your credit score, credit history, ability to repay the loan, and the amount and length of the loan you’re requesting. We check your TransUnion credit score to determine your interest rate for personal loans and personal lines of credit. The higher the score, the lower the interest rate you may receive.
How Do I Apply for a Personal Loan from Lanco FCU?
To apply online for our credit union’s personal loans, you must first meet our eligibility requirements. It’s easy to meet these requirements, as it’s only necessary that you live, work, learn, or worship anywhere in Lancaster County, PA. These are the same requirements you need to meet to become a member of our credit union, but you do not have to be a member to apply for a loan from us. You can apply for a loan online, or visit any of our branches to complete your application in person.
At Lanco FCU, we care about our members. For more than 55 years, we’ve been helping people like you achieve their life goals through promoting financial health and providing affordable credit. You’ll always be greeted with a smile when you come through our doors and will never be alone regarding your finances.
In addition to our banking and lending products, you can enjoy additional conveniences such as free notary services and free coin counters at our branches. We also offer loan skip-a-payment for those months when it’s hard to make ends meet. These are just some of the benefits you receive when you become a member of our credit union. Apply today!
*Advertised APRs accurate as of 10/24/2022. Actual APR and maximum loan amount are determined based on borrower qualifications. Pre-approvals for all loans are available and will be held at the approved rate for 60 days. Payment example: A personal loan at 7.99% APR would require 12 monthly payments of $86.98 per $1,000 borrowed.