Personal Loans

We use a variety of factors to determine eligibility for a personal loan, including your debt to income ratio. If you’re unsure if you may qualify for loan approval, you can request a no-obligation personal loan quote or speak to one of our loan specialists for more information.

Without any required collateral, personal loans are easier to obtain for some of our borrowers. The loans offered come with the flexibility to use the funds for any need you have. You can choose your repayment term, too. Try using a personal loan calculator to see which term might work best for you.

Another advantage of personal loans is that they typically offer a much lower interest rate than what you may pay using a credit card.

Finally, there's no prepayment penalty if you want to pay off your loan ahead of schedule.

You can use the funds in any way that’s right for you. Some members use their personal loans to consolidate debt, such as high-interest credit cards. Others use it for a down payment, vacation, or to create a backup source for an emergency.

The annual percentage rate (APR) you get will be based on your credit score. The higher your score, the lower your APR.

There is a combination of factors that affect your credit score. The first is timely payments, so if you make your personal loan monthly payment on time each month, your score will start improving.

The second is credit usage or how much available credit you have. So if you use your personal loan to pay off your credit cards, then keep those accounts open with a zero balance, this will have a positive impact on your credit score because all that credit will now be available unused.

Third, is how long you've held your credit accounts so that's why it's a good idea to keep healthy accounts open after you've paid down the balances.

Fourth, the mix of credit types has an impact on your score. So if you have a credit card as well as a personal loan (auto loan, mortgage, etc.), that's a good thing for your credit.

Just be aware that applying for a lot of different types of credit accounts in a short time isn't helpful to your credit!

You can have multiple Personal Loans through Best Reward Federal Credit Union, but there is a maximum total loan amount. We wrote an article with all the details on having multiple Personal Loans at once.