Top 10 Do’s and Don’ts for Personal Loans

Top 10 Do’s and Don’ts for Personal Loans

1.       Do use it to consolidate debt.

Put all high-interest credit card debt and payday loans into one loan with a fixed rate, a fixed monthly payment and a closed-end term. You’ll save money and make debt management a lot simpler. Be sure to close any credit cards you pay off so you don’t rack up another large bill.

2.       Don’t use it to pay for your college tuition.

Instead, take out an education loan with the help of Olean Area Federal Credit Union.  Educational loans could potentially offer you alternative payment options, such as forbearances or income-based repayment terms.  Additionally, you could receive other benefits when filing your annual tax returns.

3.       Do use it to finance renovations on your home.

Be smart about your renovations, though, and only choose those that will increase your home’s value.

4.       Do use it for moving expenses.

Whether you’re moving cross-country for a job opportunity or another reason, a personal loan can help pay to transport your car, to move your belongings and to buy furniture for your new residence.  Be prepared to show proof of your new employment though, if applicable. 

5.       Do use it to pay for hefty expenses.

This would include large, unexpected expenses, like a funeral or adoption costs.

6.       Do use it to foot medical bills.

Especially for things that are not covered by most insurances such as fertility treatments, large dental treatments and cosmetic surgery.

7.       Don’t use it to pay for everyday expenses.

If you find yourself doing this, you may be in financial trouble and adding an additional monthly obligation may be more harmful than helpful. Speak to an Olean Area Federal Credit Union representative for help with debt management and general financial guidance.

8.       Do use it to purchase a car or recreational vehicle.

This could include an older boat or RV that may not qualify for vehicle financing due to the age of the item.

9.       Do use it to take a dream vacation.

Don’t do it twice a year, but a personal loan can help you finance your trip for a milestone anniversary or another special occasion that warrants an extravagant vacation.

10.   Do use it to pay for a wedding.

A personal loan would allow you to finance some or all the costs associated with getting married. 

Are you ready to apply for a personal loan? Contact us today!