First Financial  
 

When the Personal Loan Works Better than the Credit Card

big7stock-Business-man-pointing-the-text-87994328
Most of us have emergency or other expenses that require quick funds. While many resort to credit cards for these expenses, a better option may exist: the personal loan.

The personal loan is a contract created between a bank, credit union or other lending entity and an individual. It states an amount to be lent to the individual and terms like interest rate and duration of the loan. Because establishing a personal loan requires discussion with a bank or credit union representative, however, many feel intimidated to embark on this kind of funding. This said, the personal loan may be the more financially savvy option in several situations.

Apply Now

First we want to cover the biggest advantages of using personal loans over credit cards. These include:

1. the personal loan can be “unsecured,” requiring neither collateral (like a credit card) nor a credit card inquiry that can lower credit scores; this said, some personal loans DO require collateral and perform a credit inquiry. Get these items straightened out with a loan agent BEFORE signing the contract;
2. personal loan interest rates are typically lower than credit card rates and negotiation with the loan officer for even lower rates is possible;
3. unlike rates for credit cards, the interest rate stays fixed for the entire repayment period;
4. monthly payments stay even. Credit card payments change as charges accrue.

With the advantages clear, you can determine whether the money you need should be gained through a credit card or personal loan. The following includes the situations that we think make the most sense for a personal loan.

1. Unexpected Income Shortfall
People make errors. Sometimes these fallible people have jobs in payroll and forget to cut checks. The good news is that banks and credit unions issue small personal loans relatively easily, requiring a few pay stubs and the last few months of bank statements. While going to the bank to discuss the situation can be uncomfortable, people in this situation get money within 24 hours when they use convenient online personal loan solutions. Online banking solutions often have lower interest rates and better terms because these alternative lending institutions do not need to satisfy shareholders or spend exorbitant amounts on marketing. As Bill Gates said in the nineties, bricks and mortar banks “dinosaurs.”

People looking to finance an adoption, in vitro fertilization, a cross-country move or other big activity without traditional financing (like a car or RV loan) turn to the personal loan to move life forward at reasonable cost.

2. Consolidating Credit Card Debt to Increase Credit Score
Who wants to pay 19% when they can pay 11%? An 8% difference per year can save the borrower with a $10,000 credit card balance $800 each year or $67 monthly. Fill out our convenient personal loan application. First Financial lenders’ lower loan rates and better terms may surprise you! We have all the security of the big, bricks and mortar banks, namely 128-bit “banking level” security. We have to. The Security and Exchange Commission and other federal institutions demand it.

3. Borrower Prefers or Needs a Fixed Rate and Term
Borrowers (or their parents or spouses) often advocate for the personal loan because it involves making the same payments at the same schedule until the loan is paid off. Credit card rates are variable and could rise several percentage points yearly. Those who make a clear decision about one large purchase appreciate the clarity of paying for it consistently over a limited period of time.

First Financial Personal Loans Provide the Savings only Online Functionality Delivers
First Financial’s lending partners can provide low cost personal loans because of their cost-saving, online structure. Apply for an affordable personal loan here, even if your credit rating is “fair,” “poor” or even “bad.” Our comprehensive application was designed by financial professionals who understand that an applicant’s financial history can be complex, particularly in the post-recession era. Fill out the application in minutes and learn how much you qualify for within 48 hours. Follow First Financial on Facebook to get smart budgeting and saving tips, too!

Comments are closed.

  • First Financial
    5.0
    powered by Facebook
    Bill Burns
    Bill Burns
    2017-10-18T16:32:57+0000
    My Friend Amber recommended me and Im glad she did these guys are great! I would recommend my friends too!
    Lara Lu
    Lara Lu
    2017-10-14T02:49:18+0000
    First Financial made me feel welcomed, comfortable and answered all of my questions. They are very professional and willing to help others. I would highly recommend them!
    Justin Petix
    Justin Petix
    2017-10-11T20:00:21+0000
    First Finacial was really there for me when I need a small loan to start my business. Thank the staff especially for me! Fast and easy, made me feel like family.
    George Jordan L
    George Jordan L
    2017-10-11T18:04:04+0000
    Seems like a great service for people in need of emergency money.
    Kaeden Monroe
    Kaeden Monroe
    2017-10-11T16:57:04+0000
    First Financial impressed me not by being perfect, but by being genuine. I felt they made an authentic effort to help me with everything I needed, answer my questions, and provide the right solution for me, even if it wasn't with them. The honesty and direct approach was appreciated and really stands out from the 'competition'.
    Kenneth Bolam
    Kenneth Bolam
    2017-10-07T20:00:54+0000
    First Financial is awesome. Helping people find loans for bad credit and low credit score borrowers.
    Amber Dawn
    Amber Dawn
    2017-09-28T05:39:51+0000
    First financial have been flexible and accommodating to my needs . When I lost my job they were very understanding and assisted me with lower payments until I was back on my feet financially, it really made life easier . I would highly recommend First Financial to anyone for not only their very competitive interest rate but unbeatable customer service !!!!
    Fernanda Moreno
    Fernanda Moreno
    2017-09-25T19:41:09+0000
    **** Thank you **** First Financial is a great company, excellent. I will recommend friends and family to your company.
    Ana Sandoval
    Ana Sandoval
    2017-09-25T19:00:40+0000
    Loved this company!!! It gave me a quick answer and help !!! Thank you
    Monique Saldana
    Monique Saldana
    2017-09-25T17:27:04+0000
    This company is awesome. If you want money fast and easy this is the place to go. Keep it up First Financial !
    Mercado Campestre
    Mercado Campestre
    2017-09-25T17:14:55+0000
    We love this company "First Financial" Thank you very much for you excellent service!
    Norma Rodriguez
    Norma Rodriguez
    2017-09-25T16:53:38+0000
    We have had a great experience with your company, they really help you when you need money on time !
    Nohemi Salas
    Nohemi Salas
    2017-09-25T16:38:13+0000
    Great & professional company! Quick to respond and not based on credit score! Thanks first financial!
    Festy Glam
    Festy Glam
    2017-09-25T06:25:32+0000
    We have had a great experience with your company, they really help you when you need money on time. Thank you !!!
    Monica Saldana
    Monica Saldana
    2017-09-25T06:21:45+0000
    First financial is such a great company! Easy and fast!!! I recommend!!! �
    Stephanie Saldana
    Stephanie Saldana
    2017-09-25T03:23:27+0000
    Thanks First Financial for my loan. I'm so happy with the the company for approving me so fast and easy. Had a great experience with you.
    Carol Casas
    Carol Casas
    2017-09-25T01:32:03+0000
    First Financial helped me get a loan with no hassles and very honest company, try them out
    Joe Saldana
    Joe Saldana
    2017-09-25T01:27:28+0000
    Thanks for the money First Finacial it was a fast and easy to work with your company.
    Cynthia Castañeda-Collazo
    Cynthia Castañeda-Collazo
    2017-09-25T01:20:12+0000
    I got my cash fast in my bank account applying online you guys are great!
    Karla Gomez
    Karla Gomez
    2017-09-25T01:07:18+0000
    Alex Salbar
    Alex Salbar
    2017-09-25T00:58:02+0000
    3. My family is happy that First Financial gave us home loan approval, now we can start looking for our dream home thank you god bless.
    Victor Berumen
    Victor Berumen
    2017-09-25T00:45:27+0000
    1. Thanks First Financial for geeting me approved for my auto loan fast and easy. �
    PartyFest El Paso
    PartyFest El Paso
    2017-09-25T00:41:14+0000
    Thanks First Financial, I will recommend friends and family to your company !
    Dorestela Moreno
    Dorestela Moreno
    2017-09-25T00:38:14+0000
    If you want money fast and easy this is the place to go. Thank you First Financial :) I love my loan !!!
    MoNy BaRron
    MoNy BaRron
    2017-09-25T00:37:12+0000
    First Financial have excellent service and next day funding, thanks � I Love them !
  • Categories


First Financial

First Financial ® Corporate Headquarters 2850 Womble Road Suite 100-604 San Diego, CA 92106

Client Service Center: Main: 1-800-315-7791 Fax: 1-800-215-0217 (Monday–Friday 5:00am–6:00pm Pacific or 8:00am–9:00pm Eastern)

Merchant Services / High Risk Merchant Accounts: 1-800-950-0212 Fax: 1-800-215-0217

 

First Financial® is a Federally Registered Trademark

©1994-2017 First Financial®, All Rights Reserved. All other products and company names are trademarks of their respective companies.