Personal loans, also known as unsecured signature loans, requires no collateral. They can be used for many reasons and are often more flexible than other types of loans. A range of loan amounts and terms are available. Read on to see if a personal loan is right for you.
How to Use a Personal Loan
Personal loans can be used for many things including:
- debt consolidation of other loans or credit cards
- home renovations
- major life events like a wedding
- even a special vacation
To learn more, read our blog on Personal Loans 101.
How a Personal Loan Works
How to Apply for a Personal Loan
Applying for a personal loan requires running a credit report and getting your credit score. If you want to find out more about credit scores, visit our blog Credit Scores: A Digital Finger on Your Financial Pulse.
Loans are subject to credit approval and your ability to repay. Your interest rate for the loan will be determined upon term, loan-to-value ratio, and credit score. View our current personal loan rates.
Cobalt also offers a debt protection plan with your personal loan in the event of death, disability or involuntary unemployment. Contact a Cobalt representative for more details.
Personal Loan Amounts and Terms
Personal loan amounts are available from $500 to $20,000. Available terms include 1 year loans to 5 year loans and we don’t charge a fee if you pay off your loan early. So there are no prepayment penalties if you decide to pay off your loan faster than your payment schedule which saves you interest in the long run.
An example of a monthly payment for a borrower with excellent credit history and without debt protection, for a loan with an APR (Annual Percentage Rate) of 5.74% and a term of 36 months, would be approximately $30.31 for ever $1,000 borrowed.
To learn more about loans and other money management topics, visit our Financial Education page.