Personal Loans & Lines of Credit FAQs
Common questions about personal loans and lines of credit answered.
Types of loans FAQs
A personal loan is a fixed amount of money borrowed from a financial institution that is typically repaid in set monthly installments over a predetermined period. Personal loans can be used for expenses like debt consolidation, home improvement, medical expenses, or other personal needs.
A personal line of credit is a flexible borrowing option that gives you access to funds up to a predetermined credit limit. It is like a credit card but with lower interest rates and potentially higher credit limits. You can withdraw funds as needed and only pay interest on the amount borrowed.
Personal loan borrowing FAQs
KeyBank offers personal loans of up to $100,000 for both secured and unsecured loans. For loan amounts greater than $50,000, please visit your local KeyBank branch.
Once a loan is approved the money may be available as soon as the same day, but it may take longer. To get your money the same day, the following conditions have to be met: (1) You have to meet certain underwriting criteria including credit score; (2) loan funding does not require third-party payoff(s); (3) funds are deposited directly into a KeyBank account; and (4) the loan signing must be completed by 2:00 p.m. ET on a day that the bank is open for business. Income verification may be required, which may delay availability of funds. Additional conditions may apply. All credit products are subject to credit approval and other program terms.
Personal loans and lines of credit can be used for a wide range of purposes, including debt consolidation, home renovations, education expenses, medical bills, or other personal needs. To find the best loan type for you, review the terms and conditions of the loan or line of credit to ensure it aligns with your intended use.
Your credit score tells a story of your ability to manage your finances and make your payments. It can affect whether or not you’re approved for a loan as well as the length of the loan and the interest rate you qualify for.
Personal loan and line of credit interest rate FAQs
Principal is the original amount of money that you borrowed. Interest is what the bank charges you to borrow that original amount of money.
If the rate is fixed, it stays the same for the entire length of the loan.
A variable rate is subject to change depending on what type of index it is based on (such as the Prime Rate).
An APR — Annual Percentage Rate — gives you the annual cost of borrowing money, including interest and other charges you’ll pay each year.
This depends on the amount of money you borrow, the interest rate and the term. You can estimate the amount using the Loan Estimation Calculator.
Loan repayment FAQs
The loan term is the length of time you are given to pay back the loan.
Typical personal loan payback periods range from 12 to 84 months and are based on the amount you borrow, the purpose of the loan, and whether the loan is unsecured or secured by some type of collateral.
There are several ways to pay your loan off quicker:
- Increase your monthly payments
- Make an additional payment each year
- Refinance your loan to a shorter term
Debt consolidation through personal loan or line of credit FAQs
Debt consolidation combines multiple debts into one. With debt consolidation, you have one payment, one interest rate and one lender. By consolidating your debt with a personal loan or line of credit, the debt may be much easier to manage and you could save money on interest over time.
That depends on several variables. Our debt consolidation calculator can help you find out.
Managing your Key personal loan or line of credit FAQs
For loan information and details, sign on to online and mobile banking, or contact us at 1-800-539-9055.
