A personal loan can help you with many financial circumstances, such as debt consolidation, paying for home improvements, or financing a wedding. Although applying for a loan traditionally requires a trip to the bank or credit union, many institutions now offer online personal loan applications to simplify the process.
Learn the advantages of applying for a personal loan online, such as faster processing times and easier document submission. T&I Credit Union offers online personal loan services for a more convenient and straightforward application process.
What is a Personal Loan?
A personal loan is a sum of money, usually borrowed from a financial institution like a credit union or bank. This type of loan is generally unsecured, meaning you aren’t required to use assets as collateral to borrow the money. People typically use personal loans to pay for one-time events or purchases they don’t have the funds to cover.
After obtaining a personal loan, you make fixed monthly payments over an agreed period called a loan term. Typically, lenders have fixed terms for different loan amounts and interest rates. For example, T&I Credit Union offers debt consolidation loans at 6% APR for 36 months or 8% APR for 60 months.
Your loan’s annual percentage rate (APR) depends on several factors, including your credit history, credit score, income, and total loan amount.
Borrowers with good credit earn the lowest interest rates and often have an easier time getting approved. An imperfect credit report and low score make it more challenging to get approved and typically lead to higher interest rates.
Online Personal Loans
Many lenders now facilitate online personal loan applications. Digital applications make the process convenient and straightforward, negating the need to stand in line or make multiple visits to the financial institution.
Unlike the traditional application process, you don’t have to take time off work or wait for an opportunity to visit the credit union in person. With online applications, you can move quickly to lock in low interest rates from anywhere with an internet connection. If you’re thinking of taking out a personal loan, consider the following advantages of applying online:
Online loan applications save you time. Unlike applying in person, online applications allow you to submit your information for approval without making a trip to the lender. You don’t have to take time off work, wait for a loan officer, or visit multiple institutions to find the right loan offer. Instead, you can input your information quickly online in minutes.
Applying online also saves on approval times. The ease of an online application can reduce stress if you rely on it for an emergency, such as an unexpected medical procedure. You can apply outside of banking hours, over the weekend, or on national holidays in time-sensitive situations.
Easy to Submit Documents
Applying online expedites the loan paperwork process. The in-person application process requires gathering and printing proof of residence, pay stubs, tax forms, and bank account information to bring to your lender. Online services allow you to fill out the loan application forms and digitally attach your documents. Once you’ve completed the application, you can submit your information through the financial institution’s online portal.
Many lenders like T&I Credit Union accept high-resolution photos of your government I.D. or digital copies of income statements and proof of address. This process can reduce application times from days (including multiple branch visits) to minutes.
Submitting documents securely online is often safer than delivering them in person. Carrying around sensitive information or original documents increases the risk of losing or damaging them. Online applications also save you the hassle of photocopying paperwork and minimize the risk of loss.
One of the greatest advantages of applying online is the fast response time. Financial institutions use specialized software to process and analyze your information as soon as you submit it. While your application will need to be signed off by a loan officer for final approval, automated software performs the bulk of the prep work.
Although response times vary between lenders, you can expect to hear back from your financial institution within two to three days. T&I Credit Union can approve personal loans in as little as 24 hours if the applicant has excellent credit and fulfills the borrowing criteria.
Since the entire loan process is coordinated online, you can receive regular updates on the status of your application. Regular updates eliminate the need to be available during business hours to confirm details or answer additional queries.
Updates also allow you to see when you are approved or denied, allowing you to make quick financial decisions. Many financial institutions have mobile apps where you can log in to manage accounts, applications, and payments anytime.
Easy to Compare Lenders
With an online loan application process, you can easily compare lenders, interest rates, and loan terms. It can be overwhelming to absorb and retain information after visiting several local banks and credit unions, but comparing data online allows you to access it conveniently and quickly.
Leading online providers have built-in loan calculators on their websites, giving estimates on loan terms, monthly payments, and additional charges like origination fees. These typically require you to input basic information, such as the loan amount and term. You can gather various estimates quickly, making it easy to narrow your search to a few lenders with excellent loan terms.
Securing the Right Type of Personal Loan
Many personal loans are available to borrowers, each with different terms, lengths, and payment structures. However, not all financial institutions offer the same variety of choices. One of the keys to securing the correct type of loan is choosing a reliable lender.
At T&I Credit Union, we offer several types of loans, ensuring you can find a suitable option for your needs. Our primary focus is to provide affordable lending solutions to our members. This value is reflected in our competitive interest rates and flexible terms. Some of the most popular personal loan offers include:
- Credit Card Loans: available with limits of up to $20,000 at 10.90% APR.
- Debt Consolidation Loans: 36, 48, and 60-month loan terms available with limits of up to $20,000 at 6% to 8% APR.
- Life Loans: 12-month holiday loans available with limits of up to $2,500 at 5,99% APR. 24-month wedding loans are available with limits of up to $10,000 at 6.99% APR.
- Shared Secured Loans: 60 and 72-month loan terms available at 1.99% to 2.99% APR. Limits are dependent on the amount of money in your savings account.
- Signature Loans: 36-month emergency loan terms with limits of up to $20,000. We determine your APR by weighing your credit score and financial balances.
We also offer student loans through our partnered company, Student Choice. Apply using a cosigner to get the lowest rates.
The online loan application process involves a soft pull on your credit report. This can give you an estimate of your approval status, loan term, and APR. However, your final loan terms and APR will vary based on a hard pull of your credit data from one of the three main credit bureaus like Equifax, TransUnion, or Experian.
Start Your Loan Application Today
Start the process of securing any of our personal loans by applying online today. If you’re not ready to submit an official application, get an estimation using our loan calculator.
You can also contact us for a more accurate estimate or pre-approval with a soft credit inquiry that won’t affect your credit score.
At T&I Credit Union, quality customer service is a priority, so you can expect a fast response time. We typically evaluate and approve online applications within one business day. While we offer competitive rates, all loans are subject to a credit check.
If you want to receive a lower rate on your personal loan, we offer members free financial counseling, helping you regain control over your finances.
As a customer-centric credit union, we are happy to assist with your personal loan application. Reach out to a loan officer for more information on our services at (248) 588-6688 and learn how we can help you meet your financial goals.