Iowa has its median household income level almost on par with the national level at $54,736. However, the growth rate showed by Iowa is on the lower side. This means that the gap between income and expenditure is widening fast for Iowa residents, fueling the demand for personal loans.
Iowa has relatively low unemployment rate at 3.7 percent, making it easier for the lenders to grant loans without any undue risks and taxes are pretty low in this state. This is mainly because employed people have better credit score and thus pose lesser risk of default in terms of how easy it is to obtain a loan. The lenders may provide better terms and conditions to the borrowers, which further helps in increasing the demand for loans.
Personal loans do not restrict the usage of the proceeds, therefore the borrowers may use the loan amount for a variety of purposes, to suit their requirements.
Personal Loan for Consolidating Debt
Personal loans are useful for consolidating debt. This is especially true for borrowers who have a large number of debts to service. Multiple debts may make their management difficult as the borrower needs to keep track of different interest rates, installment dates and repayment schedules. In many cases, the borrower may incur penalties for skipping installments.
By consolidating various debts by using the proceeds from the personal loan, the borrower will need to take care of only one debt. Further, they may also be able to negotiate better terms and conditions for the personal loan. This is useful for borrowers who may retire their high interest debt by taking a personal loan.
However, it should be ensured that the terms for the personal loans are better or at least equivalent to the terms of the debt to be retired. In any case, consolidation of debts will helpful in saving time and effort required for managing multiple debts.
Personal Loan for Setting up Business
Personal loan proceeds may be used for setting up a new business. While personal loan generally incurs high interest rate, the use of this loan for initiating a new business is a productive one. If the business planning has been done in a professional manner, the use of personal loans may help it take off.
A personal loan may be used for fulfilling the capital requirement fully or partially. It is recommended that the use of personal loan is kept to minimum level as the interest rate charged on such loans is generally higher than the interest rates charged on business loans. This is mainly due to the fact that personal loans do not require any collateral and therefore are more risky.
Best Banks for Personal Loans in Iowa
Listed below are the top banks in Iowa for personal loans:
Hills Bank and Trust Company
With Hills Bank and Trust Company, getting approved for your personal loan with highly competitive rates wouldn’t take as long as with other traditional banks.
American Trust prides itself for its very simple personal loan application process which you can do in person or by phone. If you’re within a hundred mile radius of West Des Moines, you can avail of their services.
Iowa State Bank and Trust
Having more than $120 million of assets, Iowa State Bank and Trust is the unification of two banks, allowing them to survive the Great Depression.
First Midwest Bank
First Midwest Bank currently has 125 branches in Iowa, Illinois, and Indiana. It is a great choice for those with high credit scores, particularly with a minimum of 680.
American State Bank
Managing over $800 million in assets, American State Bank retains its customer over eight of its locations through honest and ethical behavior in all their transactions.
University of Iowa Community Credit Union
The University of Iowa Community Credit Union offers flexible terms on their personal loans as well as a voluntary debt protection which reduces or cancels your debt should something happen to you.
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.