You have a major expense looming, and you want a way to finance it that doesn’t involve credit cards, home equity or depleting your savings account. You’re interested in the idea of a personal loan but want to know a little more about the option and whether it fits your needs. We can help, with a suite of personal loan and line of credit options to match different financial situations.
How Choosing a Personal Loan Can Streamline the Borrowing Process
Simple Application Process
A major advantage of a Golden 1 personal loan is it’s a fast, easy way to get the funds you need, explains Wendy Micel, Golden 1 Vice President, Consumer Lending. “It’s very simple to apply,” she says. “Once we have the application, we provide quick decisions and processing times. And we use DocuSign, so we can handle the whole process digitally.”
Quick Approvals
You’ll have a decision on your application the same day – generally within 30 minutes. And you can receive your funds quickly – often the same day – compared to two weeks with other financial institutions. Those funds can be deposited directly to your Golden 1 checking or savings account, or issued to you via check.
Flexible Amounts and Terms
You can borrow as little as $1,000 and as much as $50,000. No matter why you need the funds – from a minor mechanic’s bill or an unexpected medical expense to a dream vacation or a major home improvement – you can choose the just-right amount. We offer low fixed rates on personal loans, with no collateral requirements, no origination fees, and no prepayment penalties if you decide to pay your loan back early.*
“Our personal loans also have flexible terms,” said Micel. “Maybe you just need a short-term loan and want to pay it off quickly. Or maybe you want the ability to pay it off over a longer time and make your monthly payments as low as possible.”
Many members also choose personal loans to help them consolidate debt. Because you have the opportunity to get the amount you need and finance it over a period that works for you, you can use a lower-rate personal loan to move your existing debts from other financial institutions, get a better loan rate, and pay them down faster and on your terms.
How is a Golden 1 personal line of credit different?
A personal line of credit is an open-ended loan with a variable interest rate. That means it works like a credit card, while a personal loan is a traditional loan with a set loan amount and payment terms. “If you choose a personal line of credit, the money is there when you need it, and if you don’t need it there are no interest charges,” Micel said. “If you do use it, once you pay down your balance, the funds are available to use again.”
For that reason, you may be able to request a smaller credit limit if you choose a personal line of credit versus a loan. At Golden 1, we offer credit lines from $500 up to $30,000.
You can access your line of credit using your regular Golden 1 debit card at ATMs in our network, at Golden 1 branches or by using Online Banking to advance money from your line directly to your Golden 1 checking or savings account. “It’s very convenient, and there are no cash advance fees or transfer fees,” Micel said.
You can also use a Golden 1 personal line of credit as overdraft protection for your Golden 1 checking account. “You have to opt in. Then, but once you consent, if your checking account gets overdrawn, we automatically pull funds from the line of credit to the checking account, so you don’t experience any disruption,” Micel said, adding there are no fees for the service.
What other personal loan options does Golden 1 offer?
We offer two other personal loan solutions.
• Credit Starter Loan. “This is a unique program for individuals who need to establish credit, who may not have much, if any, activity on their credit report, and who might have limited income,” explained Micel. Loans start at $250 and require no collateral. A co-signer or guarantor is only needed for loan amounts above $1,500 (up to the maximum loan amount of $2,500).
• Golden 1 Certificate and Savings Secured Loan. These personal loans use your Golden 1 Term-Savings Certificate or savings account as collateral. Since it’s a secured loan, this option offers lower interest rates than an unsecured loan. “If you use certificates as collateral, you can borrow up to 90% of their value, and the interest rate is 3% on top of the certificate’s earning rate,” Micel said. “For example, if you’re earning 1% Annual Percentage Yield (APY), then the rate on what you borrow is 4% APR.” If you use savings as collateral, you can borrow up to 100% of your savings account’s value at a fixed 4.99% APR. Either way, you continue to accrue dividends on these accounts.
How do I get started?
“We believe that having options and choices is always a benefit,” Micel said. “And the team at Golden 1 can help you review your financing options to find the one that best aligns with your needs and goals.” You can apply for a personal loan or line of credit online or through the Golden 1 mobile app. If you have questions, visit a Golden 1 branch or call us at 1-877-GOLDEN.
Other resources when considering a personal loan:
• Loan and Payment Calculators
• Is Debt Consolidation Right for you? (Blog)
All loans subject to approval based on creditworthiness. Late Payment fee is 5% of the past due amount or $15, whichever is greater. Other limitations may apply. Annual Percentage Rate (APR). Rates vary with term, and your credit history.
*There are no prepayment penalties for Personal Loans, Starter Loans, or Certificate and Savings Loans (penalties could apply to other types of loans; refer to your loan documentation for details). Please note that making large, lump-sum payments will lower your principal balance, but will not advance your due date more than 60 days.
