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While these loans may seem convenient, they often come with high fees and interest rates, which can make them difficult to repay. If you're considering a payday loan, make sure you understand the loans terms and conditions and can afford to pay it back before you accept the loan. Personal loans may have fixed or variable interest rates, and they may be offered with different repayment terms, such as monthly payments over a period of several years.

Personal loans can be used for a variety of purposes, such as consolidating debt, financing a home improvement project, or paying for unexpected expenses. They offer a predictable payment schedule and often have lower interest rates than other types of loans.

So, for example, if your credit limit is $10,000, you should aim to use no more than $3,000 of that credit. This means that if the loans borrower defaults on the loan, the lender can seize the collateral to recoup their losses. When you apply for a personal loan at a credit union, you may be able to work with a loan officer who will take the online time to understand your specific financial situation and help you find the right loan product.