Finding the Best Personal Loans in Asheville, NC

Personal loans can help you pay for home improvements, weddings, medical bills, and many other large expenses. Consolidating debt is another reason to seek a loan. If you’re in need of money—for any reason—you can apply for a personal loan. While fewer and fewer banks offer personal loans these days, the local Asheville community can find personal loans at First Bank.¹

If you live in Western North Carolina and need a personal loan, we can help. Our personal loan options vary in features, but all come with competitive rates and flexible terms. The best personal loans in Asheville, NC are customizable, and at First Bank, we work with each potential borrower to customize a loan specific to his or her individual needs.²

Read on to understand the basics of personal loans, what factors are considered by lenders, and which First Bank option is best for you.

Reasons for Obtaining a Personal Loan

Perhaps you need money to pay for a wedding or vacation in the Blue Ridge Mountains, or you’re looking to buy a new roof for your house. Perhaps you have high balances on more than one credit card and want to consolidate the debt. There are a dozen reasons why you might need to borrow money, and this is why personal loans are worth considering.

While you may want to consider using a credit card to pay for smaller loans, such as under $10,000, a personal loan is ideal for higher expenses. Just remember, any time you take out a loan, you will be expected to pay the money back. Depending on the loan amount and how long you have to pay it back, you are likely going to pay interest on that money.

Unsecured vs. Secured Loans

When you apply for a loan, you will find both unsecured and secured loan options. Here is what you should know about them:

Secured personal loans—These loans are backed by one or more of your assets. For instance, if you take out a mortgage loan or an auto loan, the house or car will be considered your asset. By agreeing to a secured loan, you are agreeing that if you don’t pay back the money, on an agreed-upon time, the lender can repossess the asset and use it as collateral. The value of the asset must meet or exceed the loan amount.
Unsecured personal loans—Since there is no asset tied to the loan offer, lenders are at more risk on these loans. Because of this, unsecured loans tend to involve smaller amounts of money. However, if you have a good credit history and income, this might be the best option for you—and is, certainly, less risky for you as the borrower. An example of an unsecured loan is a student loan.

Exterior of modern family home.

Types of Unsecured Personal Loans

Secured loans include mortgages, car loans, lot loans, business loans, etc. Unsecured personal loans include some credit cards, peer-to-peer loans (which is money borrowed from someone your know), etc. Unsecured personal loans can be used for any number of reasons.

The types of unsecured personal loans offered by banks in Asheville include the following:

Signature loans—These are the most basic loans. The bank offers you the money you need, you agree to pay it back. There is no collateral, just your signature and your word. Often these are fixed-rate installment loans which means a lump-sum is given up-front, with the requirement of a monthly payment. You will pay that monthly amount—for however many months or years you and the lender have agreed to—until the full amount is paid back to the bank.
Credit cards—Although credit cards are very common, it’s important to note that the money you spend on your credit card is borrowed money until you pay it back. In this instance, the monthly payment varies depending on how much money you’ve spent, or your balance amount. Often, there is a minimum payment required, if you have a balance.
Line of credit—These are approved of in advance and are more similar to credit cards than signature loans. If you have a good credit history, the bank may offer this option to you. Essentially, you are given a line of credit to use when needed. The benefit of this, which is not as standard as a signature loan, is that the money is available for whenever you need it.

Factors Considered When Applying for a Personal Loan

Before you apply for a personal loan, it’s important to know what the lender will be looking at. To obtain a loan from First Bank, or any other lender, you should understand the application process and what the best personal loan lenders consider:

Credit score—In order to get the best personal loans, it helps to have strong credit. Lenders will be more likely to accept your application if you have high credit. The higher your credit, the lower the interest rate. If you wish to raise your score, you can open a credit card, pay your bills in a timely manner, and pay off your debt.
Debt to income ratio—When lenders offer you a personal loan, they want to ensure that the money will be paid back so they will look at your debt-to-income (DTI) ratio. You can determine this ratio by using a DTI calculator.
Repayment history—If applicable, lenders will look at your repayment activity. Any unpaid debts or late payments could affect your eligibility.

The application process for a personal loan is usually very quick. It shouldn’t take more than a week for them to approve or deny.
First Bank Platinum Credit Card

What You Should Look for in the Best Personal Loans in Asheville

Although lenders will be the ones approving your loan, not all loans are created equal. In order to determine if a personal loan is right for you—and what you should be looking for in a bank’s loan—here is what you should pay attention to:

Calculate your finances—Know how much you really need before you send your application.
Loans with low interest—The lower the interest rate, the better. More interest means more money that you have to pay back to the lender. At the same time, if you choose to take out small personal loans, as opposed to larger ones, you won’t have to be pay as much in interest.
Terms and conditions—Don’t accept a loan before looking at the details of the loan offer and that includes terms and conditions. You should know the interest rates, as well as late fees associated with your loan. Late fees may also be called monthly finance charges in the contract and are usually set as a percentage.
Contact the lender—Once you choose which personal loan is best, make sure you contact the lender and learn everything you can about the loan including interest, how that loan might impact your credit score, etc. You want to choose a reputable lender to work with like First Bank who is dedicated to helping customers in Buncombe County and throughout Western North Carolina.

Understanding Personal Loan Rates

No matter what type of loan you take out—personal, business, or student—your loan will likely include interest and a repayment term, both of which will be determined at the outset.

Variable vs. Fixed Interest Rates

When interest is included in a loan, it will either be set as a fixed rate or variable rate. It is hard to determine which is better, but here are the differences:

Variable interest rate—On this type of rate, the interest varies as the market interest rates change. The market can rise or fall, and therefore your payments change along with it. It is hard to determine where the market is heading, so this is often an unpredictable number.
Fixed interest rate—A fixed rate is determined up-front and doesn’t change for the duration of the loan. If you have been approved for a fixed rate, you can use a loan calculator to determine how much you will end up paying in the long-run. For example, if you get approved for a $10,000 loan to be paid back in four years with a 5% interest rate per year, then you will end up paying a total of $11,054.

What Is a Loan Prepayment Penalty?

You may want to pay off a loan as soon as possible, especially if you have the funds available. However, if you pay off a loan before the end of the agreed upon term, you could be expected to pay a loan prepayment fee. If so, this will be included in your loan contract, which is another reason why you should read the terms and conditions before signing.

What Are the Best Personal Loan Rates?

Lender rates are typically measured in terms of an annual percentage rate (APR). This percentage accounts for the total cost of borrowing money including, if applicable, certain upfront fees.

To better understand APR, it’s important to know about annual percentage yields (APY) as well. If you open a bank account, such as a savings account, you can earn interest on the money saved. When you’re paying interest, a low annual percentage rate is best, but if you’re the one earning interest, then a higher annual percentage yield is ideal.

If you have good credit, which typically consists of 670 to 739, or if you have excellent credit that is 740 or higher, you will likely receive the best personal loan rates from lenders.

bank building

Who Has the Best Personal Loans in Asheville, North Carolina?

First Bank offers some of the best personal loan rates in the Blue Ridge area, including home equity lines of credit, mortgage loans, business and professional loans, and more. What makes our loans some of the best personal loans in Asheville is that they ensure that our customers’ needs are met.

Here are First Bank’s best personal loan offers, which can be used for short-term personal loans, if needed:²

Personal Line of Credit—This option provides instant power to borrow money simply by writing a check and requesting cash. A personal line of credit may or may not require collateral to secure.
Home Equity Line of Credit (HELOC)—Take out a loan using your accrued home equity as collateral. First Bank HELOC options are flexible and have low interest rates.
Auto Loans—If you’re in the market for a new car and need an auto loan, First Bank can make it possible. Our auto loans have competitive rates, and you can access your funds in as little as 24 hours.
Boat Loans—With our fixed rate boat loans, you are a step closer to your next adventure. We offer competitive rates, flexible terms, and no prepayment penalty.
Platinum Credit Card with Rewards—A First Bank credit card is another way of making purchases now and paying for them later with no annual fees, competitive rates, and a rewards program for eligible cards.³

You can learn more about our personal loan or credit options online. Remember, we offer customizable personal loan offers. We work diligently with our customers to ensure that your financial needs are met. If you are starting a small business, you might even consider our small business loans or small business loans for women in Asheville.

If you think a personal loan or credit option is best for you, please contact us by filling out the form or visit the nearest Asheville branch to you. First Bank has various locations across Western North Carolina, including a branch in the downtown Asheville area.

Asheville Downtown 11 Church St. Asheville, NC 28801 Phone: 828‑250‑8430	Asheville East 10 South Tunnel Rd. Asheville, NC 28805 Phone: 828‑298‑8193	Asheville North 778 Merrimon Ave. Asheville, NC 28804 Phone: 828‑253‑5402
Asheville South 1879 Hendersonville Rd. Asheville, NC 28803 Phone: 828‑687‑0774	Asheville West 1012 Patton Ave. Asheville, NC 28806 Phone: 828‑254‑1778	Asheville Reynolds 5 Olde Eastwood Village Blvd. Asheville, NC 28803 Phone: 828‑298‑8711

——–

Sources:

Investopedia: https://www.investopedia.com/terms/c/collateral.asp

The Balance: https://www.thebalance.com/installment-loans-315559

Good Calculators: https://goodcalculators.com/debt-to-income-dti-ratio-calculator/

Bankrate.com: https://www.bankrate.com/calculators/mortgages/loan-calculator.aspx

Experian: https://www.experian.com/blogs/ask-experian/credit-education/score-basics/what-is-a-good-credit-score/

First Bank: https://localfirstbank.com/content/small-business-loans-for-women-asheville-nc

¹Member FDIC

²Loans subject to credit approval. Equal Housing Lender. NMLS #474504.

³Requires free enrollment in each program. Rewards are based upon qualifying purchases as defined in the terms of each program. Click for additional information.

Share:

Sign up for our newsletter and be the first to know about new tips, insights, and products from First Bank.

First Bank may use this email address to contact you about products, services, and promotions.

You may be interested in...

Tips to Freshen up Your Budget First Bank Clients: Are you using your MyMoney tools in online banking? MyMoney Manage your budget, track your spending, and modify your debt payback plan - all from your First Bank online banking account. Learn how Start with your (e)mail. Do you have a system for keeping your mail organized and sorted? Credit card and loan statements, bank statements, bills, and receipts can pile up quickly. An organized mail area in your home is the first step in keeping track of your bills and expenses. Bring that cleaning momentum into your email inbox and organize your e-statements too. If your email inbox is piling up, it might be time to clean it out. Here are a few email cleaning suggestions. Tally up your monthly expenses. You can use paper and a pencil, a spreadsheet, or budgeting software. Choose a method you are most comfortable with and get started. If you search for budgeting templates in Google, you’ll find a seemingly endless number of options. A template similar to this option from Microsoft is a good starting point for logging your expenses in a spreadsheet. Check in with your automatic and recurring transactions. Many utility providers, subscription services, and credit cards offer automatic payment options. Autopay enrollment is a great way to ensure you won’t miss a payment, but it can become easy to lose track of where your money is being spent. If you like the convenience of automatic payments but want to keep a better eye on those transactions, consider enrolling in Bill Pay. At First Bank, our Bill Pay system allows you to manage all of your payments from one place. Learn more about First Bank Bill Pay here. Predict your variable expenses. Examples of variable expenses are food, gas, clothing, pet care, prescriptions, etc. that change each month. These are more difficult to pin down, but there are a number of ways to do it. You can either look into the past and add up expenses from each spending category, or you can track those expenses moving forward in real time. Whichever your preference, having a strong understanding of how much you should be spending on non-fixed expenses each month will give you a more accurate picture of your discretionary spending. For a list of common personal budgeting categories, click here. Refine your debt repayment and savings goals. It’s hard to choose between prioritizing debt repayment or saving for the future. While you want to avoid paying unnecessary interest and penalties on your debts, it’s also important to have an emergency savings fund so that you’re less likely to incur more debt when unexpected expenses arise. Many experts recommend having enough saved to cover 3-6 months of expenses. First Bank offers a number of savings account options so that you can keep that money separate from your checking account. Did you know that First Bank credit cards offer $0 balance transfer fees? Here is a helpful calculator to see if a First Bank credit card is right for you. If you’re struggling with making your debt payments, you’re not alone. Our bankers understand that circumstances can be tough and everyone has a different financial story. We want you to feel comfortable talking about you finances and confident in creating a successful path forward. Please reach out to your local First Bank and we’ll do what we can to help you get back on track. Use your discretion. With recent cost of living increases, your typical discretionary expenses are most likely also increasing and could be throwing off your budget. Depending on your debt and savings goals, you might want to readjust your discretionary spending to allocate more for debt payments and savings deposits. MyMoney: Your First Bank Advantage If you’re a First Bank client, log in to your online banking account and explore the Financial Tools section (also known as MyMoney). This service will create a budget snapshot for you. To ensure accuracy, you’ll want to link all of your active banking accounts and customize your spending categories. Find MyMoney instructions here. One of our favorite ways to use MyMoney is to select the ‘Trends’ tab and view your monthly trends by category. You’ll have a nice breakdown of each expense category with the amount spent shown per month. 4 min read

Long-Term Installment Loans First Bank offers long-term installment loans and other types of lending that help small businesses cover expenses. The government-backed Small Business Association (SBA) helps business owners acquire long-term loans to help them grow, expand their services, or recover from disaster. Connect with our experts at First Bank today and find out how long-term installment loans could help your business thrive and grow. Benefits of Borrowing Long Term Long-term installment loans offer several key benefits for small business owners: Predictable, Steady Payments Long-term loans are usually repaid in steady monthly installments. But weekly or bi-weekly payments may be required, depending on the loan terms and conditions. Fixed Rates Another benefit of long-term loans are the stability of fixed rates. A fixed rate gives you more time to gradually pay back what you borrowed for costly repairs, construction, equipment, or inventory. Lower Interest Rates Many long term installment loans, because of the length of commitment, have lower rates than other types of business financing. Working with our network of lenders, the experts at First Bank will work with you to find the best choice for your business needs. Other Long-Term Installment Loan Factors Before taking out a long-term installment loan, there are a few factors to consider. What’s true of any loan is that interest will accrue throughout its lifespan. This can take years to pay off and could become a debt burden in the long run if a detailed budget is not in place. If you have existing debts, taking on a long-term loan may be risky. However, First Bank’s wide network of lending partners will provide the best available loan terms to help your business succeed. Long-Term Loans with First Bank Whether you need a long-term installment loan or something for the short term, First Bank can help you find the financing you need for your business. Find a First Bank near your and start growing your business today. ———— Source: SBA.gov: www.sba.gov/starting-business/business-financials/borrowing-money-your-business Loans Subject To Approval 2 min read

Plastic house sitting on glasstop, people in the background

Realtor vs. For Sale by Owner [INFOGRAPHIC] Selling your house can save you money, but you should be aware of the challenges you may face. 0 min read

Checking Account Offers in South Carolina If you live in South Carolina and you’re looking for some of the best checking account offers, your local First Bank can help. We offer a variety of checking account options—from basic accounts to accounts with tons of features to premium accounts that earn interest. Checking Accounts at First Bank First Bank is one of the best banks for checking accounts in South Carolina. Each of our checking accounts comes with free online and mobile banking,* online bill pay, and free eStatements or paper statements. Our checking account offers include: Everywhere Checking — our most basic account. Everywhere Plus — an account that has all the benefits of Everywhere Checking, plus the chance to earn interest on your balance. Everywhere Premium — an account that has all the basics of Everywhere Plus, plus additional complimentary services. Campus Checking — an account designed for students between ages of 16 and 25. Senior Checking — an account designed specifically for seniors over 55. Compare our checking account offers to see which one is the right fit for you. Find a First Bank Near You Find a South Carolina First Bank location near you to learn more about our account offers or click here to open an account online today. While First Bank does not charge for mobile banking, your mobile carrier’s message and data rates may apply. The First Bank Digital Banking Apps are available for select mobile and tablet devices. There is no charge from First Bank, but message and data rates may apply. Must enroll in First Bank Online Banking and download the First Bank Digital Banking App from the App Store or Google Play. Apple, the Apple logo, and iPhone are trademarks of Apple, Inc., registered in the U.S. and other countries. App Store is a service mark of Apple, Inc. Android and Google Play are trademarks of Google Inc. Out of network terminal owners may charge a service fee. 2 min read

Finding the Best Personal Loans in Asheville, NC

Ready to talk to an expert?

Reasons for Obtaining a Personal Loan

Unsecured vs. Secured Loans

Types of Unsecured Personal Loans

Factors Considered When Applying for a Personal Loan

What You Should Look for in the Best Personal Loans in Asheville

Understanding Personal Loan Rates

Variable vs. Fixed Interest Rates

What Is a Loan Prepayment Penalty?

What Are the Best Personal Loan Rates?

Who Has the Best Personal Loans in Asheville, North Carolina?

Ready to talk to an expert?

You may be interested in...