FAQ Category: Personal Loans Debt Consolidation
What is AutoPay?
AutoPay is a convenient service that automatically withdraws your loan payment each month from your People Driven Credit Union checking or savings account. It helps you stay on track, avoid late fees, and may even qualify you for our ¹Special Loan Rate...
Continue ReadingWhat’s the ¹Special Loan Rate Discount?
Our ¹Special Loan Rate Discount offers a 0.25% APR reduction when you set up automatic payments (AutoPay) for your loan from a People Driven Credit Union checking or savings account. This discount is already included in the “as low as” rate...
Continue ReadingDo I get any benefits with autopay?
Yes, enrolling in autopay may qualify you for a rate discount, reducing the overall cost of your loan. Check with our team for current promotional...
Continue ReadingWhat is a Debt Consolidation Loan?
A Debt Consolidation Loan is a personal loan that allows you to combine multiple debts, such as credit card balances, medical bills, or other loans, into a single loan with one monthly payment. The goal is to simplify debt management and potentially...
Continue ReadingHow does a Debt Consolidation Loan work?
When you take out a Debt Consolidation Loan, the lender provides you with a lump sum that you use to pay off your existing debts. You then make monthly payments on the new loan over a fixed period, typically with a lower interest rate than what you were...
Continue ReadingCan I qualify for a Debt Consolidation Loan with bad credit?
Getting a Debt Consolidation Loan with bad credit is possible, but the terms may be less favorable, with higher interest rates or shorter repayment periods. Improving your credit score before applying can help you secure better loan...
Continue ReadingWhat types of debt can I consolidate with a Debt Consolidation Loan?
You can consolidate a variety of unsecured debts, such as: Credit card balances Personal loans Medical bills Payday loans and secured debts, like a mortgage or auto loan, typically cannot be included in a Debt Consolidation...
Continue ReadingWill a Debt Consolidation Loan save me money?
A Debt Consolidation Loan can save you money if you qualify for a lower interest rate than what you currently pay on your debts. However, it’s important to factor in any fees associated with the loan and consider the length of the repayment term, as a...
Continue ReadingHow long is the repayment term for a Debt Consolidation Loan?
Repayment terms vary but generally range from 12 to 60 months, depending on the loan amount and policies. The term you choose will affect your monthly payment and total interest paid over...
Continue ReadingWhat is the interest rate for a Debt Consolidation Loan?
Interest rates on Debt Consolidation Loans depend on factors like your credit score, income, and the lender’s terms. People Driven Credit Union offers competitive rates, and borrowers with higher credit scores are more likely to qualify for lower...
Continue ReadingCan a Debt Consolidation Loan improve my credit score?
Yes, a Debt Consolidation Loan can help improve your credit score over time, especially if you make on-time payments and reduce your overall credit card balances. However, missing payments or taking on more debt after consolidating could negatively...
Continue ReadingHow does a Debt Consolidation Loan compare to a balance transfer credit card?
A balance transfer credit card typically offers a low or 0% introductory interest rate for a set period, making it an attractive option for consolidating credit card debt. However, the interest rate may increase significantly if you can't pay off the...
Continue ReadingWhat happens if I miss a payment on my Debt Consolidation Loan?
Missing a payment can result in late fees and damage to your credit score. If you’re having trouble making payments, contact People Driven Credit...
Continue ReadingCan I pay off my Debt Consolidation Loan early?
Yes, People Driven Credit Union allows you to pay off your Debt Consolidation Loan early without penalties. Paying off your loan early can save you money on...
Continue ReadingHow is a Debt Consolidation Loan different from debt settlement?
Debt Consolidation: This involves taking out a loan to pay off your existing debts, leaving you with one manageable payment. You are responsible for repaying the full amount of the loan. Debt Settlement: Involves negotiating with creditors to...
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