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Lending Financial Tips

Financial Tips to Consider When Getting and Repaying a Loan


  • Secured Loans (car & home) have lower rates because the car or home is used as collateral. Unsecured Loans (credit cards) have higher rates due to more risk for the lender. Always try to LIMIT Unsecured Loans.
  • Applying for a Loan? Lenders will review your Debt to Income Ratio (All Monthly Debts ÷ Monthly Gross Income Before Taxes x 100 = %). Typically, lenders want your ratio BELOW 40%.
  • Applying for a Loan? Lenders will review your Unsecured Debt Ratio (All Unsecured Debts ÷ Annual Income x 100 = %). Typically, lenders want your ratio BELOW 25%. Unsecured Debts have no collateral, such as credit cards.
  • A Loan is “Underwater” when the amount owed is MORE than what the collateral is worth. Example, you owe $25,000 on your car loan but the car is only worth $20,000. Avoid this by choosing shorter loan terms & not extending loan terms if refinancing.   
  • Save Money & Pay Off Loans Faster by rounding up loan payments. If your payment is $207 / month, round it up to $225 or $250 to pay off the loan quicker. Make sure to tell your lender to apply the extra to your loan principal.
  • Never-Ending Debt? Try paying off the smallest balances first. These small wins will give you a psychological boost and help you keep moving forward. Every payment is one step closer to being debt free!
  • Loan payments are often your largest monthly expenses. However, they also offer the greatest opportunity to save money each month. Stop by to see if you could save big by switching your loans to the credit union.
  • Lowering your loan payment(s) isn’t only about getting a better rate. By extending loan terms, changing the loan type or consolidating debt into a single, manageable payment you could save more each month.
  • Avoid applying for multiple loans or credit cards within a short time period. Lenders may think you are in financial trouble and this may impact your loan approval and credit score.
  • Do you love playing Outdoors? You can get more than just great personal and auto loans at the Credit Union. Take advantage of low-rate loans on RVs, motorcycles, and boat loans for your next adventure.
  • There are both short and long-term benefits to refinancing loans. Some strategies will give you more money upfront if you’re in need of immediate savings; others provide greater savings over the full life of your loan.
  • Pay off loans early & pay less interest by paying extra on your loan payments. Adding just $10 or $20 a month to your payment will help. Make sure you note the extra amount should go toward the loan principal balance if your extra payment is made simultaneously with your regular payment.
  • Schedule a Loan Review with a Loan Specialist today. Loans make up some of your largest monthly expenses. They also provide a great opportunity to save. Find ways to consolidate debt or refinance loans to boost your savings.