We’ve all heard financial institutions talk about customizing a loan to fit. It sounds impressive and a feature you would want in a consumer loan, but not all loans have the options and flexibility to be considered “‘custom”. Let’s break it down to determine if, in fact, your loan meets the requirements to say it is truly designed to fit you.
Let’s start with the type of loan you need. The first step in customization a consumer loan is having the option to select a loan that is created for the purchase or plans you have in mind. You wouldn’t take out a car loan to pay for college. Nor would you apply for a home improvement loan to take a summer vacation. Your credit union has specific consumer loans designed for autos, recreational vehicles, life events, continued education, debt consolidation, home remodels, VISA® credit card and so much more. The length/term of the loan, interest rate and repayment options can differ for each of these loan types.
Next, let’s review repayment options. The ability to set up payments, which match your lifestyle, can make the repayment process a much more pleasant experience. First and foremost, are your payments affordable? It is important you are comfortable with the payment amount to ensure you can manage it today and into the future. Payroll deductions and autopay are convenient and customizable features, which allow you to format your loan repayment plan to fit your personal situation. In addition, choosing your payment date(s) may seem like a minor detail, but the option to set the day your loan payment is made is valuable. Scheduling around pay days or when other payments are due can significantly affect your monthly cash flow. Determining the frequency of your payments can also be beneficial. Monthly, bi-monthly, or weekly payments give you choices to best suite your situation.
Lastly, let’s talk about additional loan features available at Dakotaland, which take us a step beyond the loan. Payment protection plans in the event you are unable to make your payments, auto warranty plans to help with expenses related to repairs, financial counseling services to advise with debt management, and assistance with the processing of vehicle titles and insurance coverage are all customizable benefits offered in support of the loan process and are waiting for you at the credit union.
It’s easy to see how a loan and a customized loan can be very different. The next time you are shopping for a loan, be sure to reach out to one of our experienced Dakotaland staff about designing a loan specifically for you.
