A personal loan can provide you with the funds that you need to buy equipment for your hobby. However, it is important to note that there are several things that you will need to know before taking out a loan. Learning all that you can about loans before you take one out will ensure that you will get the best deal on one.
What you should know about buying hobby gear with a personal loan
Only borrow what you need
Your lender may offer you more money than you request. However, you should only borrow what you need. You will have to pay back the loan along with interest and sometimes fees. That is why you should only take out the amount that you need to make the purchase.
Apply for a personal loan at First Alliance Credit Union
Have a plan in place
You should come up with a payment plan before you take out the loan. For example, you plan to take out a loan that has a $200 monthly payment. You will have to make sure that you have enough money to make the payments every month. It is also a good idea to have an emergency fund in place before you take out the loan.
The interest rate can vary
While you might be aware that you'll be charged interest on your personal loan, you might not be aware that that personal loan rates aren't the same for everyone. Lenders will charge different rates of interest for loans depending on multiple factors. The biggest factor is your credit score.
The higher your credit score, the less you'll have to pay in interest overall. A lower credit score, on the other hand, will mean higher interest rates—if your lender approves your loan in the first place.
There may be additional fees
The interest is not the only additional charge that you may have to worry about. You may also be charged other fees, like an origination fee. Fortunately, lenders are required to disclose information about the fees that they charge, so you need to make sure to read the fine print on any loan.
Got questions about personal loans? Ask us!
Apply for a Personal Loan at First Alliance Credit Union
If you have your heart set on buying some new gear for your hobby, you might be tempted to use a personal loan to pay for it. Before you do, though, you should consider how much you want to borrow and make sure you have a plan in place to pay it back. Also remember, you won't just have to repay the loan--you'll also have to pay off the interest, as well as any fees the lender charges.
If you're interested in getting a personal loan, talk to a First Alliance Credit Union member today and talk with a lending advisor. They'll help you determine if a personal loan is the best option for you and guide you through the application process if it is. As an added bonus, you'll even be able to monitor the status of your loan through our online banking platform and mobile app, and you'll easily be able to transfer money from your First Alliance checking account or savings account to pay it off.