If you’re looking for a personal loan in Hawaii, finding the right entity to work with is important. Working with the right vendor can be the difference between high and low interest rates, favorable or unfavorable terms, and a positive or negative overall experience.
HFS FCU is among Hawaii’s preferred financial institutions. We pride ourselves on working with all of our members to tailor solutions to their unique lending needs. Read on to learn more about the benefits of personal loans and the benefits of working with HFS FCU.
Understanding Personal Loans
Personal loans are often sought to help pay for significant personal expenses, such as a home improvement project, debt consolidation, or another major purchase..
There are two types of personal loans: secure and unsecured. The key difference between a secure and unsecured loan is the collateral you have to put forth. For instance, a secured loan requires collateral, such as property, vehicles, or other valuables, and lenders can seize this collateral if you fail to repay the loan according to the agreed-upon terms. An unsecured loan does not require collateral and approval, and interest rates are more based on your credit score.
Personal loans require hard credit inquiries, which can temporarily cause your credit score to dip.
Factors to Consider When Choosing a Lender in Hawaii
So, what factors should you be weighing when selecting a personal loan lender in Hawaii? Here’s a look:
- Interest rates and APR: Make sure to compare interest rates and annual percentage rates between lenders. The lower your interest rate, the less you’ll have to repay.
- Fees and charges: Some lenders may charge origination fees, documentation fees, late fees, or prepayment penalties. Be sure you understand what you’re getting into when working with a lender, as any fees or charges add to the total repayment cost.
- Repayment terms: Be sure you’re comfortable with any proposed loan duration and repayment terms. For instance, loans with a shorter repayment term often have lower interest rates but higher monthly payments. Loans with longer repayment terms tend to have the opposite.
- Local presence: There’s value in working with a local lender that’s familiar with Hawaii’s unique lending environment and its communities.
- Customer service: A local lender also offers better customer service than larger national lenders. If you have questions about your loan and its terms, it’s important to know how to best contact customer support and know you’ll get answers promptly.
Best Places to Get a Personal Loan in Hawaii
There are several different paths you can take to get a personal loan. Here’s an overview of them, as well as the pros and cons associated with each:
Banks in Hawaii
Conventional banks are among the most popular places Hawaii residents seek personal loans. Banks are good sources due to their wide range of lending options and established reputations. However, banks also tend to have strict eligibility requirements, and you may be subject to paying higher interest rates compared to seeking a loan through a credit union or other avenue. Some banks may also offer insurance products bundled with loans for added financial security.
Credit Unions Serving Hawaii
Credit unions are another popular source for personal loans. One of the most significant advantages of working with a credit union for your next personal loan is the value that they place on member service and tailoring solutions for your situation. For instance, credit unions tend to have more competitive interest rates than banks. Terms also tend to be more flexible. Credit unions often void prepayment fees and may include discounts if you meet specific criteria.
Online Lenders
Online lenders are one of the more convenient options for personal loans. Everything is coordinated and carried out online, so you can apply and seek loan approval from the comfort of your living room. The application and approval process is also typically faster than working with a conventional bank or credit union.
However, online lenders often lack the personal touch and customer service that you get when working with a local institution.
Peer-to-Peer Lending Platforms
One option is to borrow money from other people rather than from a bank or credit union. That’s the basis behind peer-to-peer (P2P) lending, which connects lenders and borrowers over secure P2P networks. Borrowers work through the P2P platform to get approved and assigned an interest rate. From there, investors elect whether to fund the loan.
One advantage of P2P lending is that it often has low eligibility requirements. However, it can also be riskier, and interest rates and repayment terms may be less favorable.
Finance Companies
Financial companies are another option for borrowers when seeking personal loans. However, financial companies may have unique requirements (for instance, some may require you to be a customer for a certain period). Additionally, interest rates may be higher, and repayment terms may be less flexible than if you went the traditional route.
Personal Loans in Hilo
Looking for a loan in Hilo? Stop into HFS FCU’s Hilo branch to learn more about our options. We also have other branch locations in the Hilo area that members can access for their banking services. As an institute that commits as much to the local community as we do for our members, we pride ourselves on offering banking services tailored to Hilo residents’ needs.
Personal Loans in Kona
Kona is another Hawaii community where HFS FCU has a significant presence. With a branch location right on the Kona coast and two more branches within 50 miles of Kona, we can offer the personal touch that residents in the community are looking for in their banking.
Why Choose HFS FCU for Your Personal Loan in Hawaii?
Why work with HFS FCU for your next personal loan? Here’s a look at some of the top reasons and value-added benefits you can get from working with us:
- Local expertise: We were founded in Hawaii and have long been committed to serving the Big Island of Hawaii’s unique and diverse communities.
- Competitive rates: We offer low interest rates on personal loans for qualified borrowers, which is much lower than the average rate of other local lenders.
- Flexible terms: We work with you to tailor a solution that meets your budget and unique situation, which includes flexible repayment plans to suit any budget.
- Exceptional service: We’re known for our exceptional customer service and pride ourselves on being a lender you can count on for accurate information when needed.
- Community commitment: We’re deeply rooted in the Hawaii community and support more than just people; we support the causes that matter most to you.
How to Apply for a Personal Loan with HFS FCU
Applying for a personal loan is fast and easy when you work with HFS FCU.
- New and existing members can apply online or contact us to schedule an appointment.
- Gather documentation. Refer to this checklist for a guide to the documents you’ll need to provide.
- Submit your loan application for credit approval.
- A member of our HFS FCU team will contact you within a few days to verify your information, close your loan, or discuss the next steps.
HFS FCU Branch Locations in Hawaii
As the Big Island’s largest credit union, we make it easy for our members to bank with us. With locations throughout Hawaii—including in Hilo and Kona—a local HFS branch near you can assist with all of your banking needs. Visit the Branch and ATM locations page for more information.
Tips for Getting Approved for a Personal Loan
Getting approved for a personal loan, or one with a low interest rate, is about ensuring you’re portraying yourself as a qualified, reliable borrower. Here’s a look at some tips to get approved with a low interest rate:
- Raise your credit score: You can quickly increase your credit score by ensuring bills are paid on time and working to pay down high-interest debt.
- Stable income: If you can prove steady employment and reliable income, you become a more qualified borrower.
- Debt-to-income ratio: Keep this at or below 30 percent to help your credit score and show that you’re not accumulating significant debt.
- Consider a co-signer: If your credit score is poor or your history is limited, consider signing with a co-signer.
- Local references: Based on any community organizations you belong to, you may be eligible for other discounts or benefits.
- Maintain a savings account: Lenders may look more favorably on applicants with a financial cushion, as it demonstrates financial responsibility.
- Check for restrictions: Some lenders may have policies that prevent specific borrowers from qualifying. For example, if you’ve recently defaulted on a loan, you may be blocked from applying for a new one for a certain period.
Ready to Achieve Your Financial Goals with HFS FCU in Hawaii?
Are you ready to achieve your financial goals with a credit union dedicated to your success and able to tailor solutions to meet your situation? HFS FCU is here to help. Contact us today for more information on our member services or visit our Personal Loan page.
Frequently Asked Questions
What credit score do I need to qualify for a personal loan at HFS FCU in Hawaii?
At HFS FCU, we’ll work with you regardless of your credit score. While it’s true that borrowers with better credit scores are more likely to be approved with low interest rates, we pride ourselves on tailoring solutions to meet the unique needs of every member.
How much can I borrow with a personal loan from HFS FCU?
We offer standard personal loans of up to $25,000.
Are there any fees associated with personal loans at HFS FCU?
There may be some fees associated with a personal loan from HFS FCU. Contact your local branch to learn more about what to expect.
How long does it take to get approved and receive funds?
It depends on the borrower. Sometimes, personal loan approval may come within hours, but it could take longer in other situations.
Can I use a personal loan to consolidate my existing debts?
Yes, that’s one of the most popular ways consumers use personal loans. This can simplify monthly payments and help them save money through a lower interest rate.
Will applying for a personal loan affect my credit score?
Yes, when you apply for a personal loan, a hard pull will be made on your credit, temporarily lowering your credit score. Usually, hard pulls only lower a credit score by about 5 points.
What is the difference between a secured and unsecured personal loan?
The key difference between a secure and unsecured loan is collateral. A secured loan requires collateral, such as property, vehicles, or other valuables — and lenders can seize this collateral if you fail to repay the loan according to the agreed-upon terms. An unsecured loan does not require collateral or approval, and the interest rates are based on your credit history and score.
