6 Things to Know About Personal Loans

Personal loans are becoming an increasingly popular way to cover a variety of life’s expenses. Whether you’re looking to consolidate high-interest debt, tackle an unexpected cost, or invest in a home project, a personal loan can help you get there with predictable payments and a rate that doesn’t change.

At Sandia Area, we’re here to guide you through your options and ensure a personal loan works for you. Here’s what you need to know:
1. A Personal Loan Offers Predictable Payments
Personal loans are installment loans, meaning you’ll pay back a set amount in fixed monthly payments over a specific period—typically 12 to 84 months. A longer loan term will lower your monthly payment but may cost more in interest over time. With a Sandia Area personal loan, you can lock in a competitive, fixed rate and count on payments that won’t change.
2. Most Personal Loans Are Unsecured
Unlike loans that require collateral (like your car or home), most personal loans are unsecured. Collateral is an item of value a lender uses to secure the loan. You risk losing that asset if you can’t replay your loan. 
3. Loan Amounts Are Flexible
Personal loans come in a wide range of amounts at Sandia Area, we offer personal loans as low as 8.99% APR for 48 months. Or 9.99% APR up to 60 months, so you can borrow exactly what you need—whether it’s $1,000 for an unexpected expense or a larger amount to pay off debt or fund a major project. The amount and interest rate depend on factors like your credit score and income.
4. Fees Vary—Choose Wisely
Some lenders charge an “origination fee” to process the loan, or even penalties if you pay off the loan early. Sandia Area does not charge origination fees, application fees, annual fees, or pre-payment penalties. 
5. Your Credit Score Plays a Role
When you apply for a personal loan, a “hard inquiry” will appear on your credit report, which can temporarily lower your score. The good news? Making on-time payments can help rebuild your score over time. Our team at Sandia Area is here to guide you every step of the way—making sure you understand how your personal loan can work to improve your financial future.
6. Personal Loans vs. Other Options
While credit cards or HELOCs (Home Equity Lines of Credit) are sometimes considered, they may not offer the stability of a personal loan.

Credit cards often come with higher, variable interest rates that can change, while personal loans provide predictable payments and fixed rates that are often lower than credit card options. 
HELOCs are variable interest rate loans that require you to use your home as collateral, which isn’t the case with most personal loans.
If you’re weighing your options, Sandia Area’s lending experts can provide the guidance you need to make the right decision for your budget and goals.

Visit our calculators page to analyze your credit card payoff or other loan calculations! Find Calculators
Apply now