Trying to find personal loans on Oahu can be confusing. There are many options to choose from. A variety of lenders offer a variety of options. Additionally, a personal loan can be used for many reasons.
PERSONAL LOANS ON OAHU | HOW ARE PERSONAL LOANS DIFFERENT THAN OTHER LENDING OPTIONS?
While personal loans can provide the cash you need, it’s not always a member’s first choice. Typically, consumers may choose either a Credit Card, Home Equity Loan, or a Home Equity Line of Credit without considering a personal loan.
Members often will use a credit card for large purchases or get them out of an emergency. This path may be quite daunting. Often, credit card purchases can add up and its interest rate is usually higher than a personal loan. If you decide to use a Credit Card, attempt to pay off the balance as soon as possible to avoid falling into debt.
HOME EQUITY LOANS LINES OF CREDIT (HELOC)
HELOCs are a type of revolving credit that pulls on the equity of your home. Your house becomes collateral. Sometimes there are fees involved when using these loan types. Depending on your financial institution and what type of loan you receive, fees may include a fee for an application, origination, appraisal, insurance, plus more. Considering this and dependent on how much money you need, a HELOC may not be the right option for you.
HOME EQUITY LOANS (HEL)
Home Equity Loans are generally paid off monthly. Your house also becomes the collateral. Like a HELOC, this type of loan also has fees.
People often turn to payday loans when they need fast cash. Payday loans often come with many fees that make it impossible for people to pay off the debt. Borrowers will sometimes take another payday loan to pay off the first one. Before long, they have multiple high-interest loans and are overwhelmed by the debt. Pearl Hawaii does offer alternatives so members do not become victims of these loan types.
PERSONAL LOANS ON OAHU | WHAT ARE THE DIFFERENT TYPES?
UNSECURED PERSONAL LOANS
An unsecured personal loan does not require collateral for the loan. Typically, a personal loan is an unsecured loan. It’s the most popular option amongst members.
SECURED PERSONAL LOANS
To get a secured loan, you are required to provide collateral. In the case of a secured personal loan, the collateral might be money in a savings account or certificate.
FIXED-RATE PERSONAL LOANS
Many personal loans are offered with fixed rates, so the interest rate and payment will remain steady over time.
With this type of personal loan, your interest rate may change over the life of the loan depending on what is happening in the market. These are typically found with a line of credit. As a result, your payments will vary as well.
Personal lines-of-credit can be both secured and unsecured. With a secured line-of-credit, individuals are usually required to have a certain amount in an account that remains locked. With unsecured personal lines-of-credit, a lender preapproves you for a certain amount. Typically, you do not withdraw the full amount immediately. You use the funds over time and as you need them. Additionally, you pay interest only on the amount you use rather than the full amount. Most personal lines-of-credit have interest rates that are variable and not fixed so they can fluctuate. Some lines-of-credit may also have an annual fee, which you pay regardless of whether you use the available funds.
An overdraft line-of-credit is connected to your checking account so if you accidentally spend more than what is in your checking account during the month, you have some added coverage to cover your payments.
PERSONAL LOANS ON OAHU | WHAT CAN YOU DO WITH A PERSONAL LOAN?
A personal loan is probably one of the most flexible loan types with fixed terms, fixed rates, a fixed payment amount. They can help you finance large purchases, consolidate debt, repair or upgrade a home, or help when there is an emergency.
Consolidating and repaying high-interest debt is one of the single best uses for a personal loan. Personal loan rates are usually much lower than the interest rate on a credit card, payday loan, or many other types of consumer loans. By using the cash from a personal loan to pay off high-interest debt, your overall debt gets paid down quicker and it’s much more affordable in the long run.
Many members are one emergency away from unplanned debt. With a personal loan, you can get approved quickly so you can take care of what you need.
Making repairs or upgrades to your home can be a good investment. Home upgrades are often expensive and paying cash for them may not be possible. A home equity loan is one answer, but only if you have enough equity in your home to qualify. While your personal loan interest rate will probably be a bit higher than the rate you’d get on a home equity loan and the interest won’t be tax-deductible, you may prefer a personal loan to avoid possible fees.
When you or a loved one needs medical care, sometimes securing money right away is necessary. A personal loan could help you pay for care.
If you owe money to the IRS, it may have some serious consequences. You may owe penalties and interest for nonpayment and the IRS could even begin collections activities, which may include a lien on your assets. A personal loan can help you pay the taxes you owe and help you avoid any possible issues.
If possible, its usually best to save and then pay cash when you need to buy something big like a computer system, vacation, or pay for a costly special event. Many members like to use personal loans to pay for a wedding, graduation, or their baby’s first birthday. If you must make a substantial purchase before you have the cash for it, a personal loan can be a good method of financing.
PERSONAL LOANS ON OAHU | IS A PERSONAL LOAN RIGHT FOR YOU?
These are just a few personal loan types and differences. A personal loan works great especially when you need money quickly, have an emergency, or want to consolidate debt. Since interest rates are usually lower than a credit card or payday loan, a personal loan is a smarter option. It is important to get your credit score in the best shape so you can get the lowest interest rate possible, compare the different repayment terms, and adjust your budget so you can make on-time payments monthly. You can get a free credit report yearly from the Annual Credit Report website or by calling 1-877-322-8228 where you will go through a simple verification process over the phone.
PEARL HAWAII | A TRUSTED LENDER FOR PERSONAL LOANS ON OAHU
If you need to borrow money, a personal loan could likely help you. If you’re still not sure whether a loan is the right option for you, call us at 808.73.PHFCU (737.4328) or visit one of our locations on Oahu (Waipio, Waianae, Ewa Beach, Honolulu, Airport, and Pearl Harbor). Pearl Hawaii is a trusted lender of personal loans on Oahu. Our team is ready to look at your financial situation and recommend the best option for you.
If you are ready, let’s get started: Apply