It’s no secret loan rates have gone up over the past few years, and that doesn’t mean taking out a loan is a bad financial move. It depends on the reason for the loan, your financial situation, and your plans for the future. Here are five reasons why getting a loan can still be a good idea.
1. The right loan can improve your financial situation.
A home equity loan used for home improvements can make your home more pleasant to be in and increase your home’s value. This means greater profit for you if you sell your home in the future. If you use a personal or home equity loan to consolidate high interest debt (like credit card balances), you’ll end up paying less interest on those debts over time and have lower monthly payments as well. Learn more or apply here.
2. Loans can improve your quality of life.
Maybe your family grew, and you need a larger vehicle? While you’re waiting for loan rates to come down, everyone’s uncomfortable and you don’t have enough room for luggage or extra passengers and car seats. Maybe you’re putting off remodeling your kitchen, and in the meantime, you’re making do with old appliances that may be unsafe? Taking out an auto or home equity loan to deal with these situations is well worth the interest you’d pay. MSGCU helps our members achieve financial success by offering market-leading rates to help you save money on your payments and minimize the interest you pay.
3. Loans help you reach your goals sooner.
Waiting until November or December to have the money for a new deck or a boat means you won’t be able to use it until next spring. A loan will let you enjoy an extra spring and summer of fun in the sun, and you can still save up cash to make extra payments on the loan later if you want. Likewise, if your child’s college tuition is due in August, you don’t have the luxury of waiting for a year-end bonus. A loan helps you get the money when you need it.
4. You can get a loan now and refinance it later.
Delaying a purchase to see if interest rates drop makes it hard to plan. Even experts have difficulty predicting exactly what rates will do and when. With a loan, you can make the purchase when you need it, and if interest rates drop later, you can refinance your loan at the lower rate. MSGCU can help you refinance any loan. For refinancing auto loans, we even offer an Auto Rate Pledge. When you refinance your auto loan from another lender with MSGCU, we’ll give you a 0.25% rate discount or our best rate, whichever is lower.† Learn more here.
5. With the right guidance, you can get the lowest rate possible.
Part of getting a great loan rate is choosing the right lender (like MSGCU). Another big part is having a good credit score. Since rates can vary widely depending on your credit score, do what you can to get yours as high as possible before applying for a loan. MSGCU is happy to meet with you and suggest steps you can take to boost your score, which can save thousands in interest over the life of a loan.
We even offer Credit Score to our members, which is a free tool available in MSGCU’s Online and Mobile Banking where members can view their score and receive personalized tips for improving it.
We can also get you preapproved for loans, including mortgages, auto, boat, and RV loans. Preapproval will help you understand your estimated interest rate and monthly payment before you shop for homes or vehicles, giving you more clarity and confidence about what you can afford.
MSGCU is here to help
Overall, when you make financial decisions like whether to take out a loan, you need to consider more factors than cost alone. Say a family member is having a destination wedding; it may be worth taking out a loan to be there on their special day. Only you can decide, and MSGCU can provide the guidance to help you reach that decision.
We are here to help you achieve your financial goals and encourage you to make an appointment to speak with our team at any of our 22 conveniently located branches, contact us through Video Banking or online chat, or call (866) 674-2848 with any questions.
Category: Finance
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