How Personal Loans Work

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How Do Personal Loans Work?

When you need extra cash, say for a family vacation or to pay off debt, a personal loan can be a great choice. But how do they work? Can you have more than one personal loan at a time? What does pre-approved mean? Here, you’ll find answers to all of your personal loan questions.

How Personal Loans Work

A personal loan is typically given by a bank or credit union and then paid back in monthly installments over a period of time. They can be used for a wide range of financial needs, including paying medical bills and investing in home improvement projects.

You can also use personal loans for consolidating your debt into one loan which may save you in interest. Other people use these loans to refinance existing loans for the same purpose. Receiving a personal loan and the amount you’re eligible for depends on your credit score and history.

Need a personal loan now? You can apply online or give us a call at 866-462-5532.

Your Additional Personal Loan FAQs Answered

How Many Personal Loans Can You Have at Once?

You can have multiple personal loans. In fact, there are no rules against it. That said, most lenders will limit the number of loans you can take out through their financial institution. It’s also important to know that having multiple personal loans can negatively impact your credit. In addition, the amount of your debt can impact your ability to secure another personal loan.

Can You Pay Off a Personal Loan Early?

It’s possible to pay off your personal loan early. And, in some cases, this might be ideal. However, it’s important to make sure your lender doesn’t charge a prepayment penalty. This is a fee you’ll be responsible for if you pay off your loan before you’re allowed to based on the loan terms. If no prepayment penalty is charged and your loan terms don’t prohibit early payment, go for it!

Can You Get a Joint Personal Loan?

Yes, you can enter into a loan agreement with a co-borrower. Having a co-borrower may make it easier for you to obtain a loan as the lender will have additional credit, income and more to use when making a decision. If you do have a co-borrower, both parties will be responsible for paying back the loan.

What Does Pre-Approved Mean for a Personal Loan?

Being “pre-approved” means that based on basic information about you and your finances, your lender would most likely approve your loan up to a certain amount. However, this doesn’t necessarily mean you’re guaranteed a loan. Your lender will make the final decision based on additional information supplied during the application process.

At United Teletech Financial, we offer personal loans with lower interest rates than traditional financial institutions. It’s our mission to help our members reach their financial goals.

Need a Personal Loan? Reach Out to the UTF Team Today!

Want to pay off some debt? Financing your education, wedding or vacation? We can help. Apply online for a personal loan today or give our team a call at 866-462-5532. We’re here to help you reach your financial goals.

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Apr=Annual Percentage Rate. Rates include a 0.25% discount for electronic payment from a United Teletech checking account. Max loan amount = $35,000.