3 Big Expenses for a Personal Loan

What is a personal loan?

A personal loan is a secured or unsecured fixed-rate loan with a set term. Let’s break that down:

• Secured loan: collateral required
• Unsecured loan: collateral not required
• Fixed-rate: refers to the interest rate. If your loan application is approved by BancFirst, the interest rate given to you will remain the same throughout the life of the loan.
• Set term: refers to the time you have to repay the amount borrowed. If your loan application is accepted by BancFirst, the term will not change throughout the life of the loan. You can always choose to repay sooner, but not later.

*Approval based on credit history

Personal loans can be a helpful solution to large debts or bills by providing a stable, low-interest repayment structure to ease the burden of a variety of debts or expenses.

 

What can I use a personal loan for?

Life doesn’t always happen in the way that’s most manageable or affordable. Whether you’re faced with consolidating credit card debt, unexpected ER visits, or unanticipated large medical expenses not covered by insurance, personal loans can be a good repayment solution. Below are a few common reasons for applying for a personal loan:
 

1. Debt consolidation
   • Consolidate multiple debts into a single loan to simplify payments and streamline debt management. The goal here is to save money in the long run and protect your credit score as much as possible.
2. Medical expenses
   • Important surgeries are not always covered by insurance (e.g. LASIK, Cosmetic procedures, Orthodontic work & braces, fertility treatments, and audiology testing). Depending on your financial situation and credit score a personal loan can be a good solution instead of breaking the piggy bank or racking up higher interest rates on a credit card.
   • Sometimes your dog’s zoomies at the dog park result in a torn ACL outside of your vet’s office hours (and those after-hours fees just don’t seem to get any cheaper). A personal loan can help break up those pricey, unexpected expenses into manageable amounts with interest rates that could be lower than traditional credit cards.
3. Unexpected expenses
   • Auto repairs add up quickly and are dangerous to procrastinate. Whether your car needs a new transmission or your truck is due for its 100,000 mile service, a personal loan from BancFirst can provide peace of mind in covering your mechanic’s invoices and get you safely back on the road.

 

Can I just put my debts on another credit card?

Opening another credit card seems like the easy solution for debt management but may not always be the best solution for paying off bigger amounts. While a loan and a credit card are both essentially debt that is owed and must be repaid, each have their own sets of advantages and challenges.

A personal loan offers the benefits of a set term (i.e. the time to repay). Not adding another expense to your overall credit card balance means protecting your credit score from being harmed by a prolonged, high usage (depending on your credit limit), and possibly higher interest rates if there are any missed payments.

In a nutshell, personal loans can have a lower interest rate than credit cards.

 

Advantages of Personal Loan with BancFirst:

• Fixed-rate loans with stable monthly payments.
• Few restrictions on how funds are used
• Ideal way to consolidate higher interest debt
• Knowledgeable, friendly professionals motivated to help you efficiently manage your debt

 

How do I start the process?

1. Apply for a personal loan: BancFirst offers an easy online application. If you prefer to walk through the process with a BancFirst employee, call or visit the BancFirst location nearest you. You are our priority!

 

Tools to assist during the process:

1. Look up your credit score: Your credit score is crucial in determining whether you qualify for a loan and how much you can borrow. You can check your credit score for free on NerdWallet, CreditKarma, or AnnualCreditReport.com.
2. Figure out how much you can afford to borrow: Use our debt calculator to estimate monthly payments and the amount of time you’ll need to repay.

As you work on managing and paying off debts, don't forget to focus on maintaining and improving your credit health as well. Check out our tips on Understanding Your Credit Score or watch our video to learn more about building credit.
 

To learn more or to apply for a personal loan, submit an online application, contact us, or visit one of our Oklahoma branches.