5 Types of Personal Loans (And How They Work)


a woman happily reads an approval letter for the type of personal loan she hoped to receive to build her credit

When it comes to your finances, you may believe you have a “cushion” to rely on should something bad happen. However, life has a tendency to throw you curveballs you aren’t remotely prepared for – or more specifically your bank account isn’t prepared for. What do you do then?


At Telcoe Federal Credit Union, we offer several types of personal loans so we can be that “cushion” for you when you need it most.


Continue reading to learn about the types of personal loans we offer to help cover all of life’s anticipated and unexpected moments!


Signature Unsecured Loan


Unfortunately, life tends to bring unexpected expenses that can take out a large portion of your paycheck. Sometimes, you understandably just can’t afford this extra, unanticipated expense. This is why Telcoe offers fast and affordable financing for almost anything you may need assistance with funding.


With our Signature Unsecured Loan, there’s no collateral necessary and your loan amount and repayment terms offer flexibility to meet your needs. Competitive rates, a minimal application fee, and funds available same-day², in some cases, make getting a personal loan with us convenient and stress-free.


Share Savings Secured Loan


Enjoy even lower rates with Telcoe’s Shared Savings Secured Personal Loan!


With this type of personal loan, you can use your Telcoe personal savings or personal property to secure financing for your choice of personal expenses. The interest rate offered on this type of personal loan is based on the amount of collateral backing. Enjoy an APR¹ as low as 13.50% and borrow up to $1000. Funds are available in a brief 72 hours².


Another added benefit of a Shared Savings Secured Loan from Telcoe is that your savings remain intact, incurring ongoing dividends, which means you get a nice reduction of your total loan cost.


Christmas and Vacation Loans


Telcoe’s Christmas and Vacation Loans help make special events and times of year less stressful on your wallet. Because we believe you shouldn’t miss out on creating memories with your family and friends, we offer this specialized loan so you don’t have to dip into your savings to fund life’s moments.


Telcoe offers competitive financing for a one-time holiday or vacation costs. This can be expenses such as gifts, plane tickets, and a costly hotel stay. This type of personal loan is reliable and affordable, allowing you to borrow up to $2500 with terms of up to 12 months.


As a bonus – funds from your Christmas or Vacation Loan can be available to you the same day², credit pending!


Credit Builder Loan


Bad credit can limit your options and eligibility for securing financing for things like auto loans and mortgages.


With the Credit Builder Loan, you don’t have to worry about the future of your financial success. Use this type of personal loan to build or reestablish your credit history while planning your savings for your future.


Plus, you don’t have a single fee to worry about!


With the Credit Builder Loan, you pay a low application fee of $15 and request your loan amount of up to $1,000. Your funds are frozen until the loan is paid in full. However, in the meantime, your focus is to improve your credit score with a low monthly repayment term of up to 24 months.


Back to School Loans


Choosing to invest in your education is a choice you should be proud of, but it often comes with a hefty price tag.


Whether you are finishing your pre-collegiate studies or continuing your education at a college or university, you can relieve some of the financial weight with a Back to School Loan from Telcoe. Funds can be used to pay for computers, books, and more. Borrow up to $500 and get money in as little as 24 hours² along with a friendly, attentive service from start to finish.


Don’t let the increasing costs associated with education hold you back from what you need to achieve your academic goals.


Find the Best Type of Personal Loan to Fit Your Life


When it comes to deciding what type of personal loan to choose, you must take into consideration your budget, your credit, and how you plan to use the funds.


At Telcoe Federal Credit Union, we have made it our goal to help you finance life’s moments while building a lifetime of financial opportunity. Now that you know more about the range of personal loan types we offer, you may be ready to start the application process. Click below to learn more about getting started – including what you need to apply.


What You Need to Apply for a Personal Loan


1 Rates will vary depending on creditworthiness and are subject to change without notice. Loan terms available may vary depending on amount borrowed, the length of contract, credit history, and payment method. All loans are subject to approval. Regular terms and conditions apply. Telcoe Federal Credit Union is an Equal Opportunity Lender.


2 Turnaround time frames may vary based on the amount of time it takes to get the required paperwork and documentation to our loan department.