Bank Loan and Line of Credit
Loans from Community Bank.
Community Bank offers both secured and unsecured loans. Our secured loans include New and Used Car, and New and Used Motorcycle Loans. Our unsecured loans are called Signature Loans and are available for amounts as low as $1,000. Both types of loans offer advantages over credit card, and other revolving debt:
- Lower APRs that stay the same for the life of the loan
- May improve your credit score over time
- Automatic payments from your Checking Account reduce the chance of missed or late payments
- There are no pre-payment penalties for paying off our loans early.
If this sounds like it might be right for you, our Easy Online Application process makes it convenient to apply from the privacy of your own home. In most cases, we’ll even give you an instant decision.
A Bank Line of Credit is a form of revolving credit, similar to credit cards, that is sometimes linked to your Checking or Savings Account. You can usually use a special check to draw on your line of credit without affecting your other balances. A line of credit has several advantages over credit cards, including:
- No annual fees
- A lower APR than most credit cards1
- A stable APR that will not increase if you are late on a bill
Also, by putting some debt onto a line of credit, you can keep your credit card balances lower, which is good for your credit score. Having a line of credit helps diversify the range of credit options available to you, which may help your credit score.
As opposed to revolving credit, such as credit cards, this type of credit is known as installment credit. Rather than a balance that fluctuates from month to month, an installment loan is borrowed in one lump sum and then paid down over a predetermined period of time through regular monthly payments. Keep in mind that bank loans normally have a fixed interest rate, as opposed to the variable rate charged by most credit cards. They fall into two categories:
Secured – With this type of loan, something of value, called collateral, backs up the loan amount. Since the bank’s risk of loss is lower should the borrower default, the interest rate is lower than on other types of loans. A new car loan is a common example. Another is a mortgage loan, which uses the borrower’s house as collateral.
Unsecured – These loans are not tied to a particular purchase, as with a car loan. Because there is no collateral backing up the loan amount, the APRs are generally higher for unsecured loans than for secured loans. The loan applicant’s credit score influences whether the loan request gets approved. If approved, it may also affect the loan’s APR.
