Busting Some Myths on Personal Loans

The personal loans are multi-purpose debts that can be used for a host of tasks including, emergency medical bills or funding home improvement projects. Overall, this type of debt is useful in solving financial crunches and helping you in reaching your growth goals.

As the manager for personal loan Wareham department points out, such loans can help in solving a lot of financial issues for a person – but often a customer tends to overlook them. It mostly due to a lack of understanding of how the personal loan schemes work, or how to best utilize them.

Here are some of the biggest myths associated with personal loans and the truth behind it:

     1. Personal loans are expensive

Personal loans do charge interest, but when comparing with the credit card – the annual percentage rates are marginally less. Loan applicants who have a higher credit score will automatically be eligible to get lower interest rates for the mortgage. Additionally, the loyal consumers are offered an additional loyalty bonus from the bank.

As financial manager points out, in most of the case the rate of interest for personal loans is calculated a bit differently from the credit cards interests. For credit cards, the rate of interest is variable. Thus, the APR for the credit card rises with the index rate. For personal loans, the index rate is somewhat fixed – making the interest rate stagnant throughout the life of the loan.

     2. Personal loan application involves a lot of paperwork

Contrary to popular belief, personal loans do not involve you filling out numerous paperwork, and signing multiple papers. However, now the situation has changed and with the help of technology, the process has simplified. You can apply for the loan online and the bank will follow up with you.

For the sake of simplicity, keep your review documents handy and upload them as the requirement arises. This facility is limited, mostly, toward the customers of the bank. In case you are not a member of the bank, then you might not be eligible to apply for the loan online. It is recommended to verify the same before starting the process.

Overall, personal loans are a helpful aid in solving financial emergencies. The personal loan Wareham department of PCT Federal Credit Union could help you in filling out the details for consolidates mortgages and help in getting the amount. To know more, visit http://www.pctfcu.org/ or call 508-291-0777.

Five Important Things for Choosing a Credit Union

There will come a point when you will have to choose a bank or a credit union to settle your financial matters. It does not matter if you are new to banking or switching your selection, you will come across a challenge of selecting the right one. To help you in choosing the right credit union or banks in Wareham, we have prepared a few factors to consider before you make a decision. If your choice of the credit union has all these factors, then know that you are making the right choice.

• Low-Interest rates

• Online banking features

• Brach availability

• Ease of deposit

• Security of your fund

These five points are some of the most important factors that will help you decide whether to choose a particular bank in Wareham. However, it is often easy to be confused while selecting a suitable bank. If that is the case with you, then filtering your search with the help of these factors will let you choose the right credit union. You can also get help from PCT Federal Credit Union; they have a reliable reputation in the market and known as one of the trusted banks in Wareham. Just visit http://www.pctfcu.org/ or dial 508-291-0777 to know more.

Five Hacks to Save Money for Your New Car

Buying a car is probably the first big purchase we make in our life. Most of us opt for auto loans to buy a new car and often without the down-payment. However, the loan comes with interest, and it can, in the long run, increase the cost of the car by a few thousand dollars.

The executive handling auto loans Wareham MA at a credit union explains how. When we buy a car for US$20000 and take a loan for four years at a 6% interest without a down payment, you will end up paying close to US$2600 extra as interest. On the other hand, when you pay a down payment for US$1,500 is made for the same car, with four percent interest for three years, ends up shelling out US$19,662.84 for vehicle1.

So, in this scenario, paying the down payment seems a favorable option. Also, since the car’s value depreciates at a tremendous rate, paying an auto loan for an extended tenure doesn’t seem to be a good decision – finance-wise.

How to save for down payment?

Now that we have proven why you need a down payment for buying your vehicle let us learn how we work towards it.

     1. Setting up a realistic figure for down

 Before proceeding with saving for the down, try to set up a realistic estimate for the same. Choose a suitable price range for a car – one that does not put a hole in your pocket – and work towards saving a down payment. Usually, as a thumb rule, try to save around 18% to 20% as down for a new car. For used vehicles, generally, 10% is enough.

Ideally, the more money you can save as down payment, the better deals you can expect from the dealership.

     2. Open a savings account

The savings account will be a safe house for your money. Open in a separate account for the purpose, so that you are not tempted to pull up the cash for other expenses. Saving the money in a high-interest savings account can fetch you an additional income in the future. If you have time, buy a certificate of deposit for the same.

     3. Spend carefully

When saving for a major purchase, you have to be careful with money. In these times, a thrifty attitude is always beneficial. Cut down unnecessary purchases and work towards bringing down existing expenses like while grocery shopping, phone, and internet connection. The money you will save should be redirected to your savings for the car.

     4. Setting up a budget for car-related expenses

Buying a car is one part of the journey, maintaining it is another. You have to work through other ongoing costs like insurance, fuel, and other maintenances charges. As a thumb rule, the cost of insurance premiums is determined by the credit score, age, and driving record. To make it work, before choosing insurance for your car, go for an insurance shopping.

     5. Trading the existing car

This hack is suitable for people who own a car and want to buy a new car. Selling the old car at a favorable amount can help you in getting closer to your goals. Selling your car on your own will fetch you a higher price, but can be time-consuming at the same time. Several online car appraisal tools can be used to estimate the car’s value – making your job easier.

Apart from that, you can take a side hustle for an additional income that can help you achieve the dream amount quickly. Overall, with some patience and perseverance, you can easily arrange the down payment for your car. After arranging the amount, head to your car dealership to make the purchase.

However, here are a few things to remember while financing a car:

     a) Car’s value depreciates quickly, so paying interest over an extended tenure is not a smart decision

     b) ALWAYS choose a car you can afford while purchasing a vehicle on an auto loan

Your car is probably the first big purchase you will ever make in your life. With some intelligent savings, you can buy your car at a cheaper rate. 

The auto loans Wareham MA department of PCT Federal Credit Union can help you in financing the car. To know more, visit http://www.pctfcu.org/ or call 508-291-0777.

Reference from

     1. https://www.nerdwallet.com/article/loans/auto-loans/car-loan-calculator