Decoding The Two Types of Personal Loans
When you need money, a personal loan is a great way to access cash. The money from a personal loan can be used for big purchases, home repairs, medical bills and so much more. Plus, a personal loan can consolidate debt and lower your monthly payments.
Inspire FCU offers two types of personal loan options: Secured and Unsecured. While they may sound confusing, these popular loan options can help you get convenient cash. Learn how they work and how they can help you manage your finances.
Get Cash Quickly With An Unsecured Personal Loan
According to TransUnion, 19.4 million Americans used an unsecured personal loan in 2020 and the average loan amount was $6,092. A personal loan gives you financial flexibility. As a trusted and experienced lender, Inspire FCU provides members a personal loan with rates far better than credit cards. And with an unsecured personal loan, you won’t need collateral to apply for the loan.
An unsecured personal loan is based on your credit rating. (Learn more about credit rating and ways to improve it.) For those who need cash, but don’t have collateral, an unsecured loan can be a helpful option. It’s simple to apply, easy to manage and gives you fast purchase power.
Borrow exactly what you need, as low as $500 or as much as $25,000. This is a great financial lifeline when consolidating or paying off high interest debt, medical bills, education costs and other expenses that can be difficult to control. An unsecured personal loan is also a smart way to pay for small home repairs or large remodel projects.
The unsecured personal loan from Inspire FCU has a fixed rate as low as 8.74%, with terms up to 60 months. Please visit our rates page for complete disclosure and account terms and conditions: Current Loan Rates.
Unsecured Loans Vs. Secured Loans
To put it simply: An unsecured loan approval is based on credit rating. A secured loan is based on collateral, backed by a savings account. A secured loan is a great option if you need cash, but don’t want to dip into your savings account, while paying a lower interest rate.
With a secured loan from Inspire FCU, you can borrow 100% of your savings account. You have quick access to the money, your savings stay put and your savings account will continue earning interest. There is no credit check for a secured loan, and you can use the loan to help build or repair credit. Applying for a personal loan is easy. Click here to get started.
But for those without collateral, an unsecured loan from Inspire FCU is a great solution for managing debt and paying for unexpected expenses.
How To Use An Unsecured Loan To Eliminate Debt
Unsecured loans from Inspire FCU have interest rates more competitive than those offered by credit card companies. Many credit cards have interest rates of 14% or more, compared to a personal unsecured loan rate of 8.74%. Learn about the different ways to help consolidate debt.
A smart way to use an unsecured loan is to consolidate your outstanding credit card debt. With an unsecured personal loan, you pay off the debt, lower your monthly payments, and take better control of your financial future.
An Unsecured Personal Loan Is A Financial Helping Hand
A secured or unsecured personal loan from Inspire FCU can provide the money you need. The difference between the two loans comes down to collateral: If you have no collateral or savings account, use an unsecured loan to pay for unforeseen expenses, home repairs, vacation, events, vehicles and more.
Stop by your local community Inspire FCU branch , apply online or call us today. Our financial experts can walk you through available options and help find the right loan for your financial needs.