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How Can I Use a Capital CU Personal Loan?

Personal loans are a great way to achieve financial goals faster. Rather than slowly building up enough savings before pursuing your goals, be proactive with Capital CU personal loans. Apply for a personal loan to cover unexpected emergencies without stressing over where the money will come from or begin living the life you dream of without delay. Whether you are planning for an exciting life change, a dream vacation, furthering your education, debt consolidation, or getting ahead on medical bills, a personal loan has you covered.

If you have recently been hit with an unexpected emergency or are trying to jump-start an important life or financial goal, keep reading. Discover what a personal loan is, the different expenses it can cover, and how it can help you reach your goals without delay.

What Is a Personal Loan?

A personal loan is a lump sum that you borrow from a lender, such as a credit union, and use for a variety of personal expenses. The loan terms are set by the lender and will include a loan repayment schedule. The lender will determine the interest rate, repayment term, any additional fees, and the amount you’re approved to borrow based on your creditworthiness. These terms vary from lender to lender, so it’s important to shop around for the best rates and terms.

When comparing loans, make sure to consider:

  • Interest rates
  • Fees
  • Borrowing limits (loan limits and maximum loan amounts)
  • Repayment terms
  • Collateral requirements (cash assets or physical assets)

Look for a lender with lower rates, minimal fees, and repayment terms you can comfortably meet. Typically, credit unions such as Capital Credit Union offer competitive rates with lower fees.

When considering how much to borrow, be sure to consider your monthly budget. You want to avoid paying late fees or additional interest over the life of the loan by making timely payments. So look at the monthly payments set by the loan terms and calculate whether you can easily fit these payments into your monthly budget without dipping into your savings or stretching your budget to its limits. There should be a cushion within your budget to allow for unexpected costs or emergencies.

How Are Personal Loans Different From Other Loans?

Personal loans differ from other loans in a couple of key ways. First, they are more flexible in how the money can be used. Mortgages, car loans, student loans, and so on all have set parameters for how the money can be used. A mortgage must be used to buy a house, a car loan to purchase a car, and student loans to cover college tuition and other related educational expenses. A personal loan, however, has fewer restrictions.

Another difference between personal loans and many other types of loans is that they are typically unsecured. That means you can receive a personal loan without offering any form of collateral. Secured loans, such as home, auto, and home equity loans, on the other hand, require your home or vehicle to be used as collateral for the associated loan. That means if you are unable to repay your loan, the lender can take possession of that collateral to repay the cost of the loan. This isn’t a risk with a personal loan.

What Can a Personal Loan Be Used For?

Though terms vary from lender to lender, personal loans can generally be used for any personal expenses. Think about what goals you hope to achieve in the near future. These can include milestone life goals such as buying a home, relocating to a new state, or getting married. Or perhaps you have large bills to repay or upcoming medical procedures that will improve your quality of life but not be covered by your insurance. Also think about financial goals that could set you on the road to financial freedom. Would consolidating your debt secure a lower interest rate and help you pay off debt faster?

To help get you started, below is a list of some of the more common ways personal loans are used:

Debt Consolidation

You can save money by paying off high-interest credit card and loan debt with a lower-interest personal loan. Consolidating debt to one balance can also help you pay off your debt faster with a single, easier-to-manage, predictable repayment plan.

Medical Bills

If your healthcare provider does not offer an affordable payment plan or your insurance will not reimburse certain medical expenses, you can get the care you need without delay.

Home Improvement

Make improvements and renovations to your home without tapping into your equity through a home equity loan or risking your house as collateral in case you default.


Don’t put off that dream vacation another year. Turn your dream into a reality with a Capital CU personal loan.

Wedding Expenses

Weddings can be expensive, and saving enough money for a wedding can delay your major life event longer than you’d like. Access necessary funds when you need them the most and enjoy your new stage of life on your timeline.

Funeral Costs

Funerals are often unexpected. If you don’t have the money necessary to cover the costs or travel to a loved one’s funeral, use a personal loan rather than racking up high-interest credit card debt or draining your savings.

Unexpected Emergencies

If you don’t have an emergency fund, unexpected life events can be costly. Cover large vehicle repairs, take time off work to care for a sick family member, afford costly medical expenses, or handle whatever else life throws at you without accruing high-interest credit card debt.

Moving Costs

Moving can be expensive, especially when making a long-distance move or relocating to a different state or country. Cover the costs of moving trucks, storage units, packing materials, professional movers, and more. Mitigate moving-related expenses with a personal loan and reduce stress.


College is expensive; personal loans can help make higher education attainable without huge delays. Note that some lenders may place limitations on using personal loans to cover college-related expenses, so check with your lender to make sure tuition is not restricted by their terms.

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There are many ways a personal loan can help you reach your financial goals faster. If you’re interested in learning more about Capital CU personal loans, speak with our lending experts about your options. We are here for you!

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