Personal Loans and Lines of Credit
An emergency. A fresh start. A splurge.
If you’re looking for a flexible financial option to pay off a debt, make a large purchase or cover another major expense, a personal loan, personal line of credit or share secured loan might be the right option for you.
- Borrow as little as $500 or as much as $20,000*.
- Terms of 1 to 5 years are available, based on the amount you borrow.
- Your rate is fixed and your payment amount will be the same each month.
Personal Line of Credit
A personal line of credit is an open-ended loan on your signature, giving you the flexibility to borrow whenever the need arises.
- Credit limits are available from $500 to $20,000*.
- Your monthly payment amount is determined by your loan balance, so it can change from month-to-month.
- Your rate is variable, tied to the Wall Street Journal Prime plus a margin depending on your credit score. View current rates.
Share Secured Loan
Use a share secured loan when you have a large expense and don’t want to deplete your savings. It’s also an excellent option if you’re new to borrowing and need to establish credit history.
- Our fastest loan approval and a great rate, too.
- Deposit and maintain a savings balance equal to your loan balance. As you make loan payments, the matching funds in your savings become available again.
- Terms of 1 to 5 years may be available.
- Your rate is fixed and is equal to the savings rate plus 2.00% at the time of signing.
*Advertised APRs accurate as of 2/12/2020. 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 $10,000 personal loan at 8.99% APR would require 60 monthly payments of $212.42.
Optional Loan Protection
Lanco FCU Debt Protection
Lanco Debt Protection is a voluntary loan-payment protection product that could help you get relief from loan payments if a protected life event unexpectedly happens to you. Simple eligibility requirements help ease the enrollment process. Protected events include loss of life, disability and involuntary unemployment. Learn more about Lanco FCU Debt Protection.
How to Apply for a Personal Loan from Lanco Federal Credit Union
Current and eligible members of Lanco Federal Credit Union can apply for a personal loan in amounts from $500 to $20,000. Your borrowing limit will depend on several factors such as your credit score, income and ability to repay.
To apply online for a personal loan from Lanco Federal Credit Union, you’ll need to have the following items or information on hand to complete the process:
- Social security number
- Valid photo ID
- Date of birth
- Physical address
- Lanco FCU account number (or meet member eligibility if you are not yet a member)
Before you get into entering your personal information, the first screen of the application will ask you to estimate your credit score, input your requested amount and select your desired payment term (from one to five years). Our on-screen calculator will help you visualize your budget by showing what your total monthly payment would be based on your terms and current interest rate. It will also show you the total amount you’d pay back.
You can make adjustments to the dollar amount and number of years to compare options before proceeding to the rest of the application. (For example, you could toggle between three- and five-year terms to see the difference in monthly payments.) It’s important to note that this tool is just an estimate, with the actual rate and payment being determined once your application is submitted.
You can also check current personal loan rates. If you have questions before you officially apply, one of our loan representatives would be happy to speak with you. Just contact us, and we’ll be in touch.
Ready to apply for a personal loan?
As their names imply, some loans come with a specific purpose: auto loan, home loan, student loan. A personal loan, however, is a flexible borrowing option.
Mortgages, home equity loans and auto financing require collateral—these are called secured loans. If you default on these payments, your lender could repossess the house or car to recover its money. A personal loan is usually unsecured. This means you’re not at risk of losing personal property.
Personal loan terms usually vary between one to five years, and you, as the borrower, can often choose the term length that best fits your budget.
Common reasons for getting a personal loan include:
- Credit card consolidation
- Paying off high-interest credit cards
- Paying off/paying down medical bills
- Home repair
- Moving expenses
- Vacation or other travel
- Wedding or honeymoon
- Major household appliance
- Recreational vehicle
- Emergency fund
Whether for a planned life event or an unexpected one, or for an upgrade to your home or a faraway visit to someone else’s, a personal loan can help you.
What is the benefit of getting a personal loan over another borrowing solution such as taking a credit card cash advance? There are many good reasons to apply for a personal loan, and we’ll share a few of them here.
Lower Interest Rate
One big benefit of getting a personal loan is that it will probably offer a lower interest rate than a credit card. In other words, putting a larger purchase such as a car repair, refrigerator or vacation on a credit card could cost more in the long run than if you were to get a personal loan.
Lower Monthly Expenses
A personal loan could also help you lower your overall out-of-pocket spending each month. If you’re making monthly payments on several high-interest credit cards, you can use a personal loan to pay off some or all of those balances. Your new monthly payment, on that single personal loan, likely will be lower than your previous amount due each month.
Simplify Your Budget
A lower interest rate isn’t the only benefit of a personal loan for credit card consolidation. Because this process reduces the number of individual payments you’ll make each month, you likely will find managing your money and organizing your bills easier.
Boost Your Credit Score
Over time, a personal loan could help boost your credit score. While outstanding balances impact your credit utilization ratio (and, thus, lower your score), as you build a good payment history, this ratio goes down—and your score likely will go up. On-time payments are one of the biggest factors in determining your credit score.
A personal loan can also contribute positively to your “credit mix,” which shows lending agencies that you’re able to manage a variety of accounts such as revolving (credit cards) and installment (loan payments).
Apply With Ease
Finally, a personal loan is usually a quicker and more straightforward application process than other types of loans. You’ll need fewer documents to apply, and you’ll get a decision—and your funding—sooner.
Remember: Although there are certainly benefits to getting a personal loan over other lending alternatives, it’s wise to only take out a loan if you really need one.
When you apply for a personal loan, the lender will consider several factors, including your credit score, income and other financial obligations. So before you begin the application process, you might want to get a good overview of your current financial situation.
First, you should check your credit score to find out how lenders will see you. (By law, you can request your credit report for free one time a year from each of the three major credit bureaus.)
Next, you should figure out how much you need to borrow and how this amount might impact your monthly budget. You can use a free online loan calculator tool to determine how much your monthly payment might be, based on various interest rates and loan terms. This exercise will help you know how much you can afford and help you prepare for how you might need to adjust your budget to make room for the loan payment.
After you check your credit and do a little preliminary math, your next steps would be to research borrowing options and lending institutions, choose a lender that fits your needs and begin the application process.
If you have subpar credit, you’re not alone. With the many programs available today, it is possible for you to secure a personal loan even with subpar credit.
Lenders have different ways of determining approval and interest rate, and the most common is the credit score. Many institutions, including Lanco Federal Credit Union, set various rates that are based on a range of credit scores. For approved borrowers who have a score on the lower end, that can mean a higher annual percentage rate (APR), resulting in more money paid to interest. The average credit score in the United States is 703, with a fair score falling between 580 and 669, according to Experian.
One way to improve your chances of receiving a loan approval is to apply with a qualified co-signer, such as a spouse, friend or other close relative. Some institutions will use the average of your credit scores, while others such as Lanco FCU will determine the rate based on the highest applicant credit score. It is important that both you and your co-signer understand your responsibilities to repay the loan and how credit is affected.
What if you have no credit? A personal loan can also help with this Catch-22. You can’t show you are creditworthy if you don’t have a loan or credit card yet. In this case, a share secured loan can help you to start building credit. As always, be sure to make on-time payments each month for the maximum benefit to your credit history and score. Otherwise, it may be difficult to get approved for unsecured loans in the future.
If your loan is not for an emergency and you have the means to do so, consider holding off on your purchase for a few months while you improve your credit score, even if it’s just a small boost. With a little patience, you could get to where you need to be for that approval, or for a lower interest rate.
It’s a question we hear a lot: are credit unions better for personal loans than banks? Although credit unions and banks offer similar personal banking services, there are a few key differences to consider. Banks are for-profit firms owned by their shareholders while credit unions are not-for-profit cooperatives owned by their members. Unlike bank customers, members of a credit union must share a common bond such as living in the same community or working for a certain employer. Many credit unions, in fact, are community-oriented and often have a mission that involves helping promote financial well-being among its members.
Many people choose a credit union as their financial institution of choice for those reasons, but there are more benefits than just personal service and local ties. Because credit unions such as Lanco FCU don’t answer to shareholders, excess earnings are often returned to members by way of competitive interest rates and lower fees. Credit unions are also known to consider the big picture of someone’s situation, not just a credit score.
Credit unions might further show their interest in their members’ well-being with offerings such as Lanco FCU’s Debt Protection Program, which can relieve you of some or all your personal loan balance or payments in the face of a protected unforeseen life event.