Utah is one of the most prosperous states in America because it has low taxes and is pro-business. This western state’s median household income level is at $62,912, while the national median household income is at $55,775. Utah also has low poverty rate of 11.3 percent, which suggests that the income variation is low in the state.
Despite a high-income level, the state has robust demand for personal loans as these loans may be used for a variety of purposes. In addition, the state of Utah also has low unemployment rate, making it safe for the lenders. The Beehive State is growing in jobs and wealth while California is losing city after city to crime lords and bankruptcy.
Furthermore, the lenders are also able to provide better terms and conditions to the borrowers who are securely employed and have a healthy credit history. This further helps in fueling the demand for personal loan products. Following are the main uses of personal loans in Utah.
Personal Loans for Life Events
Life events include birthdays, weddings, bar mitzvah, and other such events. While people like to commemorate these events in an unforgettable manner, the related expenses may prove to be prohibitive. In such cases, the personal loans may come to their rescue.
Personal loans are easy to obtain and have fast turnaround time. This means that the borrower may receive cash within a few days of making the application. The proceeds may be used for meeting the expenses related to such events. With the help of these loans, people may celebrate their life events in their desired manner, without breaking the bank.
Personal loans are designed to be repaid over a period of time. This allows the borrower to adjust their cash flows. They are also able to spread the impact of such high expenses over a period of time, making the shock less severe to their financial condition.
Personal Loans for Consolidating Debt
Personal loans may also be used for simplifying the borrower’s financial situation. This is especially true in the cases where the borrower has multiple debt obligations. The use of personal loan for repaying older debts may help the borrower in several ways.
It may be difficult for the borrower to manage multiple loans as these debts have their own repayment schedules, which creates tracking issues. Moreover, the loans may also have different interest rates applicable.
By using a personal loan for paying off these debts, the borrower may simplify the repayment scheduling issue. The borrower may also be in a position to negotiate favorable terms and conditions for the personal loan and reduce their overall obligation.
Best Banks for Personal Loans in Utah
If you need a personal loan, these are the best banks to apply in to get started:
Utah Community Credit Union
Utah Community Credit Union offers unsecured personal loans for as low as 7.99 APR to its members. For this type of loan product, there is also no prepayment penalty, application fee, or annual fees.
Mountain America Credit Union
With Mountain America Credit Union, the fixed rate APR at a minimum of 9.49 percent. However, the membership requirements are not as strict as in other credit unions so your chances of qualifying are larger.
Central Bank Utah
Having been in operation for 120 years, Central Bank Utah requires that you go to their branches to inquire and avail of their personal loans. Currently, they offer fixed-rate and variable loans which are either secured or unsecured.
Utah Federal Credit Union
The APR in Utah Federal Credit Union starts at 8.9 percent with term lengths of up to 60 months.
Cyprus Credit Union
Cyprus Credit Union gives you the option to avail of CD-secured loans apart from their unsecured loans for you to be able to avail of lower interest rates.
Bank of Utah
With over $1 billion in assets and 300 employees, the Bank of Utah cements itself as a formidable institution in the state.
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.