Colorado ranks 7th in the US with respect to credit card debt. It has an average credit score of 689, and an estimated $7,773 in credit card debt, per person. The decent credit score indicates that Colorado residents do not mismanage debt. However, what does bother them is the cost of living that is through the roof.
Housing, grocery, health care, and utilities are all very expensive. Even though unemployment is at 2.7% and the median household income is more than the US average, the state struggles with debt.
Housing costs and mortgage rates can vary from the rates in other states. Paying towards a mortgage itself can chip off a major block of the income of a Colorado resident.
Personal loans can come in handy to consolidate debt, as bridge loans, to help with home improvement, plan special vacations and events, and so on.
Personal Loans for Special Vacation Plans
You can take out a personal loan as low as $1,000, up to $35,000, to plan your special vacation.
If you do not want to max out your credit cards, but still would like to make your vacation memorable, then you can think of a personal loan, as an option.
Personal loans get sanctioned quickly and are for a specific term. These loans do not need a collateral, but the interest rates could depend on your credit score.
Since the payments are fixed, it would be easy for you to budget on how to make payments and pay down the debt.
Personal loans are a good choice when you know the amount you need. And, since a vacation is planned, it will be quite easy to budget and procure a personal loan.
However, please take out a loan for the amount you need, and nothing more, as it could land you into significant debt, and repayment could become a problem.
Personal Loans as Bridge Loans
Colorado is looking at increasing the income-to-debt ratio to 50%, as against the 42% earlier. Mortgage lenders are also thinking of not looking at negative items like collections and judgments in your credit report, while lending.
This could only mean good news for people who want to buy that dream home.
However, if based on other evaluation factors, the mortgage that is taken out does not cover all the heads required to buy that home, you could look at taking a personal loan as a bridge loan.
Best Banks for Personal Loans in Colorado
Although personal loans are generally unsecured, you shouldn’t have to pay sky-high rates for them. And with these banks, you wouldn’t have to:
First National Bank
With over 105 branches within and outside the state, First National Bank is a choice of convenience. By having an account with them, you also get discounts on your personal loan.
Bank of Colorado
The Bank of Colorado has a solid range of banking products and services which make your whole banking experience hassle-free. Its online bill pay feature makes it easy for you to pay your monthly premiums as well.
Keep a better track of your finances as you can do personal and business banking with FirstBank. Having a good relationship with them will help you land better loan rates.
Integrity Bank and Trust
Aside from highly valuable banking products, Integrity Bank and Trust offers special loans to borrowers who meet certain criteria.
Great Western Bank
With Great Western Bank’s online and phone banking, getting updates on your loan application as well as repaying your monthly payments can be done at your convenience.
Academy Bank, N.A.
For its Elite Checking account holders, Academy Bank N.A. offers 0.25 percent rate discount on their personal loans.
Christine has a solid background in personal finance as she spent the last eight years working at one of the biggest banks in the US. She managed her own team of financial advisors that helped hundreds of people with their financing needs. Her innate understanding of different financial products and loans helped her move up the ranks quickly after graduating with a degree in Business Administration.