Personal Loans

How is a personal loan different from a personal line of credit?

Answer: A personal loan is an installment loan so you make equal monthly payments over your chosen loan term until the loan is paid off in full. You usually get a fixed interest rate. They're a popular choice as a form of debt consolidation loan so you have a single, low-interest payment.

In contrast, a personal line of credit is a source of revolving credit, like a credit card. This means you can continually use and repay the funds in a cycle and your monthly payment will go up and down depending on how much funds you use. If you don't carry a balance, you don't need to pay interest.

Both these loan products are unsecured personal loans, so you don't need to provide any collateral to get the loan.

What rate will I get for my personal loan?

Answer: The rate you get for your personal loan or line of credit depends on a few factors:

Your overall creditworthiness including your credit score, repayment history, and debt to income ratio (DTI).
The loan term you choose if it's for a personal loan.
The loan amount or credit limit for your personal line of credit

It's a good idea to check your credit score and take steps to improve it before you apply for any loan products. Higher scores get the lowest APRs range.

What are the benefits of personal loan pre-approval?

Answer: Getting pre-approved (with a hard credit inquiry) or pre-qualified (with a soft credit inquiry) gives you a better idea of whether you're likely to be approved and allows you to check your rate.

If you shop around different lenders for the best rates and terms, multiple applications for the same type of personal loan within about two weeks will count as only one credit application. This means the impact on your credit score is minimal – and your credit will start to recover once you've made a few timely payments.

But if you apply for different types of loans and credit products within a short time, it will count as multiple applications and affect your credit score more. That's why it's a good idea to do some research and find the loan option for you before you apply.

What term should I choose for my personal loan?

Answer: The term you choose impacts your monthly payment, your rate, and your total borrowing costs.

• Shorter terms bring higher payments, but lower rates and less total interest.
• Longer terms bring lower payments, but higher rates and more total interest.

You can talk to a friendly loan officer about which term will best fit your budget and goals.

What fees do I need to pay?

Answer: HCCU doesn't charge any prepayment penalty or application fee for a personal loan or line of credit. 

You will need to pay late payment fees if you miss a due date so be sure to pay on time to avoid fees and maintain good credit. 

Can I get a personal loan if I have no credit history or bad credit?

Answer: A secured personal loan is a great way to establish credit for the first time or build credit so you can qualify for more financing in the future. With these loans, the funds in your HCCU savings or certificate account serve as collateral until the loan is paid off in full.  

You may qualify for a secured loan with lower credit scores, missed payments on your credit report, or bad credit, but it will depend on your overall financial situation and your lender's criteria. You can talk to a member services representative about how we can help your finances recover so you can qualify.

Can I apply in person or do I need to apply online?

Answer: Applying online is fast and secure and you may get a response as soon as the next business day. You're also welcome to visit a branch and apply in person at any of our branches in the Greater Sacramento area:

Folsom: 707 E. Bidwell Street, Folsom, CA 95630
Fair Oaks: 5329 Sunrise Boulevard, Fair Oaks, CA 95628
Gold River: 2155 Golden Centre Lane, Gold River, CA 95670

Whether you apply online or in person, you can speed up the process by having your ID, proof of address, Social Security number, and evidence of your income ready to go.