Personal Loans and Urgent Money Needs

Back-to-school season can get expensive—fast. Between new clothes, shoes, tech upgrades, extracurricular costs, and/or college dorm and apartment needs, the bills can pile up before you know it.

There are times in life when the bills add up fast and you need cash quickly. It may be back-to-school expenses, hospital bills, car trouble, or debt. A personal loan is for times like these. Personal loan amounts vary and are not secured with collateral. That means there’s no property that backs the value of the loan.

Is a personal loan right for you? Let’s look at four critical questions to ask before getting a personal loan.

1. How’s my credit score?

Closely examine your credit score. If your credit score is above average, finding a personal loan with a reasonable interest rate is easier. If your score is lower than you’d like, try a secured loan. Rates on secured loans are usually lower. You provide collateral as insurance in case you can’t pay it back on time.

A downside of a personal loan is the higher interest rates. You can keep your interest rate down by limiting the amount you borrow, using a shorter repayment period, or securing your loan with personal property. If none of these strategies can get the interest rate down to an affordable level, a personal loan may not be for you.

2. How do I apply?

The application process can vary depending on the lender—some take weeks, while others can approve you in hours. Requirements also differ, but most will ask for identification (such as a Social Security card or state-issued ID), proof of income (like W-2 forms, bank statements, or paycheck stubs), and proof of address (such as recent mail or your lease agreement). If you’re self-employed, income statements or other payment records can be used.

At Texas DPS Credit Union, we make applying easy and convenient. You can apply in person with one of our friendly loan officers or complete your application online, saving you time and helping you get your funds faster.

3. What do I need to watch out for?

Scammers prey on desperation. Be careful. The classic phishing scam is when scammers pretend to be legitimate loan companies. You apply for that loan and give them all the information they need to steal your identity. Advance fee loan scammers trick you into paying a “loan fee” prior to receiving money, and then disappear.

4. Where do I go?

When borrowing, it’s important to work with a financial institution you know and trust—one that offers fair terms and looks out for your best interest. Avoid lenders with large final payments, early payoff penalties, or unfavorable terms, and always be cautious of scams. At Texas DPS Credit Union, we pride ourselves on transparency, competitive rates, and personalized service, so you can borrow with confidence.

If you’re in the market for a personal loan, come speak with one of our loan officers. Call, click or stop by Texas DPS Credit Union today!