What Are the Current Personal Loan Rates at Lanco FCU?
It’s that dreaded time when you must sit down and create your budget for the upcoming month. It makes you sick to your stomach to see how much interest you’re paying on your credit cards each month, and it feels like you’re just getting buried deeper in debt. The minimum payments barely dent the total balance, but you don’t have extra money this month to put towards it.
What if there is an option that allows you to consolidate your credit cards into one monthly payment that can frequently be lower than what you are currently paying towards your balance? This scenario and a few others are exactly why Lancaster County residents come to Lanco Federal Credit Union and inquire about our current personal loan rates.
Whether you need a personal loan in PA to save money on your monthly payments, pay for your wedding or honeymoon, or fund a large purchase, Lanco FCU can help you get the funds you need with our personal loan options for qualified borrowers.
As a not-for-profit credit union, earnings get returned to our members, and one way we do that is by offering lower interest rates on our lending products. Get started today by becoming a member of Lanco FCU!
1. What Kinds of Personal Loans Does Lanco FCU Offer?
A personal loan is a lending option that gives qualified borrowers a certain amount of money, ranging from $500 to $20,000. It’s an unsecured loan, so you don’t need collateral to secure it.
Loan terms range from one to five years, depending on your loan amount. Our lenders will base your loan eligibility on factors such as your credit score and income. We currently have three personal lending options:
- Personal Loans allow you to borrow a specific amount for a specified term. This type of loan features a fixed annual percentage rate (APR) and monthly payments.
- Personal Lines of Credit give you open-ended borrowing, so you can borrow a specified amount when you need it. The payment amount depends on your loan balance, so it may change monthly.
- A Share Secured Loan is great for new borrowers without much credit history or to pay for a significant expense without depleting your savings. Simply deposit and maintain a savings balance equal to your loan balance.
2. What is a Good Interest Rate on a Personal Loan?
A good interest rate on a personal loan depends on several factors. In general, the average personal loan interest rate for borrowers with a credit score of 720 and above is 10.3%, according to BankRate.com. Additionally, if you’re applying for a personal loan to consolidate debt, you’ll want to ensure that the interest rate is lower than that of the debt you’re consolidating.
Compared to averages, Lanco FCU’s current personal loan rates are much lower. Check out this comparison:
|Credit Score||Average Personal Loan Interest Rate+||Lanco FCU’s Current Personal Loan Rates*|
|720-850||10.3% to 12.5%||6.99% to 7.99%|
|690-719||12.5% to 13.5%||7.99% to 9.99%|
|630-689||17.8% to 19.9%||9.99% to 13.99%|
|Under 620||28.5% to 32.0%||15.99%|
+ Rates as of 6/15/2022 via BankRate.com
*Advertised APRs accurate as of 6/8/2022 and are subject to change without notice. Payment example: A personal loan at 6.99% APR would require 12 monthly payments of $86.06 per $1,000 borrowed.
3. How Do I Get a Lower Interest Rate on a Personal Loan?
As you can see from the table above, the higher your credit score, the lower your interest rate. Your actual APR may vary, and the maximum loan amount available is based on your qualifications. One way to get a lower interest rate is to apply with a co-signer. Some lending institutions will take the average of your scores to determine your APR, but some personal loan lenders like Lanco FCU base your rate on whomever has the highest credit score.
Another way to get a lower interest rate is to wait a few months before making your large purchase if the loan doesn’t cover an emergency. In those months, you can work on improving your credit score by making on-time payments to your other revolving debt and improving your debt-to-income ratio.
4. Do Personal Loans Affect Your Credit Score?
Yes, personal loans do affect your credit score. Personal loans in PA can boost your credit score by making your monthly payments on time. Payment history is one of the critical factors in determining your credit score, so having a long history of on-time payments can help improve your credit report and score.
In addition, your credit score may increase if you’re applying for a personal loan in Pennsylvania to consolidate debt, pay off past-due accounts, and decrease your credit utilization ratio. Another way it can help boost your credit score is by improving your credit variety.
Conversely, it may negatively impact your credit score if you do not make your monthly payments on time and have applied for too many credit accounts in a brief period. Opening a new account also decreases the average age of your account, which may hurt your score.
5. What Are Some Reasons to Get a Personal Loan?
There are many reasons to inquire about our current personal loan rates and ask for a loan application. Some of the most common reasons people get a personal loan include:
- Pay off high-interest debt
- Make a large purchase
- Consolidate higher interest rate credit cards
- Pay off medical bills
- Home repair (though a home equity loan or HELOC may be a better option)
- Moving expenses
- Wedding and/or honeymoon
- Adoption Fees
- Appliance purchases
- Recreational vehicles
- Emergency fund
6. What Loan Terminology Should I Know Before Applying?
Some of the terms you should know about applying for a personal loan include:
- Annual Percentage Rate (APR)—A percent rate that reflects the amount of interest charged
- Applicant—A person who applies for a loan
- Borrower—A person who borrows money from a lender
- Co-Signer—Any individual who assumes responsibility for the loan on behalf of the borrower
- Credit Score—A number based on payment history, the current debt amount, credit history length, credit mix, and new credit activity is used to determine your creditworthiness.
- Debt-to-Income Ratio—Also referred to as “DTI”, the ratio, expressed as a percentage, that results when a borrower’s total recurring monthly debt, including the proposed personal loan, is divided by the gross monthly income.
- Default—Failure to pay back the loan as specified in the Promissory Note
- Gross Monthly Income—The monthly salary you earn before taxes, withholding, and expenses
- Interest—The cost of borrowing funds, calculated as a percentage of your balance, that you must pay in addition to principal.
- Net Monthly Income—The monthly salary you earn after deducting federal, state, and local taxes
- Principal—The amount you borrow from a lender and agree to pay back.
For a Personal Loan in Lancaster, PA, Apply at Lanco FCU!
With a personal loan that consolidates your debt into one low monthly payment, budgeting for the next month’s expenses doesn’t have to be a dreadful activity. Lanco FCU may be able to help you get a personal loan to fund a major purchase or pay off high-interest debt.
With our current personal loan rates being much lower than the national average, you can enjoy the money you need without exorbitant fees or interest rates. Become a member of Lanco FCU today to get started enjoying low interest rates on our lending products!