Everyone has financial challenges from time to time. If you have a poor credit score, you can still secure a credit union loan, provided you do your homework and build a strong case.
Here are a few tips for success with credit union loans Fort Worth residents need:
- Know Your Credit Score. There are many sites and apps that offer you a free credit score. Asking for your own credit score does not affect your score. The level of your credit score will determine the terms and conditions of your loan. For example, you may be charged higher interest rates and qualify for smaller amounts.
- Improve Your Score. If you can pay down debts and limit hard credit inquiries, such as applying for an auto loan or credit card, you can boost your score before you apply.
- Pull Your Credit Report. The credit report lists more details, including amounts you owe for a house, car, student loan or credit card. It will also list other unpaid amounts from creditors and the reliability of your payment history. If you see errors on your credit report, appeal them to the issuing credit bureau to get them removed.
- Show You Can Pay It Back. You’ll need to demonstrate proof of income to be successful. You may consider having a cosigner, who would sign the loan with you. If you are unable to pay back the loan, the cosigner would be responsible for the debt.
- Know the Rates. Explore the rates at area credit unions and understand their score requirements.
- Consider Loan Types. There are two basic loan types. Secured loans are those where you put up an asset that is collateral to guarantee the loan is covered. Unsecured loans are not secured with an asset but will incur additional fees if not repaid.
The First Class American Credit Union is here to help with your financial needs, including personal loans. To learn more about our loan products, contact us today.