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Are you thinking about getting a personal loan? Before starting your search for the best lender, most consumers have some questions about the process of actually acquiring this type of loan. Hawaii County Employees Federal Credit Union specializes in providing car loans, mortgage loans, and other types of personal loans to its Hilo, HI, clientele. Below they’ve answered five common questions about acquiring a loan. 

Common Questions About Personal Loans

Which Type of Loan Suits My Needs?

Consider your needs before starting the process. Do you want a one-time sum for a specific purpose, such as a car, personal needs, or mortgage? Or do you need a revolving line of credit for your small business or home improvement? The loan you are approved for and your interest rate can fluctuate depending on your needs. 

What Personal Information Will I Need to Apply?

Most lenders will require personal information, including your name, social security number, date of birth, and address details. In addition, they will likely require two or three forms of personal identification with your image on them to verify your identity. When you apply for larger loans, such as a mortgage, a more involved vetting process will take place.

How Much Will I Qualify For?

This is dependent upon the type of loan you are applying for, as well as your credit history. Lenders are more likely to loan out larger sums to those who have handled debt responsibly in the past. They will look at your credit score, past accounts, current debts, and overall history to ensure that you will pay them back. 

Which Lender Should I Work With?

This is up to personal choice, but most consumers choose lenders with an established reputation within their communities. Shop around for the best interest rate, but also read the fine print before signing any documents. Make sure that you can prepay your loan without penalty, and that your lender is offering a fair rate.

How Will Applying For a Personal Loan Affect My Credit Score?

Every time a lender ‘pulls’ your credit, it can trigger a negative point on your credit score. This is because it appears to the credit unions that you are attempting to acquire more credit than you need. Be wary of applying for too many loans, as it can negatively impact your credit score. 

If you’re considering applying for a personal loan, be sure to select a trusted lender that has a history of professionalism within your community. Hawaii County Employees Federal Credit Union has a variety of loan options to suit your needs. Call their loan specialists directly at (808) 961-5550 or visit their website for more information. 

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