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Personal Loan of $25,000 in US? Bank to apply? Credit History?

Where to apply for Personal Loan in US Credit Union

Recently, I wrote an article on the best way to pay off your education loan after Job. If you have read it, I have mentioned, I took a $25,000 loan in US and sent it to home country to save good amount of money.  The question that might have come to your mind is, Where the hell should I apply to get $25,000 Loan ?  Which bank should I apply ? How should I build credit history ?  I will try to address some these things in this article and how I got my loan.


Importance of Credit History

Credit history in US is of significant importance, if you do not have good history…you are basically screwed…You do not want to commit any mistakes in the beginning (first  few months in US) to build your credit history. Read this article on How to build good credit history in US.  Anyways, if you have bad credit history, it is not a good idea to apply for a personal loan. It can even ruin your credit history more. You just need to know your credit score and assess how much history you have build before applying.

Which Banks to apply ? National or Local ?

Most of you might have an account in nationalized bank like Chase, Bank of America, US bank…the fact is, I would not recommend applying to the nationalized banks. Simple logic, there is too much hassle there and too many rules to deal with because you are dealing with a big bank on a national level. The odds are you getting approval with decent credit score is relatively less. So, where should you apply ? Ever heard of the credit unions ?  Yes, you should apply in credit unions or local banks. Credit unions are very local and they usually deal with local customers and meant for community development and not just mere profit. They will have all the facilities you need and the size of the bank and attention you get is much more. I applied my loan in a credit union and got it approved. So, did my friends…

How to build a good relationship with Banks like Credit Unions ?

When I landed in US for the first time fortunately, I opened an account in a local credit union. I deposited some amount and then did not use it much. After 2 and half years, I called them and asked if I can apply for a personal loan and they said sure. I did some paperwork submitted my pay stubs and I got the loan approved. The reason I say this story is, I opened the account long time ago and had some transactions with them. I have been an old customer for them for 2 and half years…it is basically building the history of the account and not just credit history. Though my credit score was not super high, I got my loan approved because I was an old customer.  So, if you plan to take such personal loans, I would recommend you to open one of those accounts in credit unions and do keep doing some transactions and just build some history.  You have to be very careful; do not open too many bank accounts, unless needed.

Overall, just do not screw up your credit history by applying to every card that comes in mail. Try to build good credit history and if you have plans to take personal loan, open an account in a small credit union and build some history. Once you are prepared, at the right time with right credit history you can apply for personal loan and you will get it approved without any hassle.

Did you apply for any personal loans in US ? Any experiences ?

Image Credit : http://www.flickr.com/photos/mudricky/1546480135/sizes/m/

11 comments… add one

  • Archana Sep 1, 2014 Reply

    Hi Mam,

    I am Archana. I have started company has bpo i have financial problem no back round support please me in this….i want to achieve please me…Believe me and help me in money

    • Vignesh Oct 2, 2014 Reply


      Do you mean you have started a BPO in India and need funds now?

  • david Dec 14, 2013 Reply

    Good day Ladies and Gentlemen,
    do you need a loan to buy a house,to pay off юр bills,to
    buy a car or to meet the needs of your families? if this is
    the case then worry no more and get back to us via email and all your
    financial problems will be solved.
    We await your urgent email.
    Thank you.

  • Ashok Jul 8, 2013 Reply

    If anybody want to build credit score open account with DCU credit union bank. Along with Savings account they gave me credit card also even I came to US just 2 months back

  • Nina Oaks Jun 4, 2013 Reply

    I am on L1 VISA. When I first came to the States nobody wanted to give any credit. Fortunately, in my home country I had bought a car with Ford and they were willing to check my credit behaviour there and they approved a car leasing for 2 years. Now that my lease is almost up, I went to a Credit Union, Desert Schools in Phoenix and my application was denied just because I am temporary Resident. My Score BTW was fairly good 798 in a scale from 0 – 900. So good credit does not guarantee that banks or credit unions will be willing to work with you.

  • Su Jul 12, 2012 Reply

    I have a very bad experience applying for credit card itself, leave alone Personal loan with a credit union, In the initial 1 yr, i did not take any credit card, So NO Credit history & could not get any credit cards easily, When contacted Credit union, they said they need GC/Citizenship just for the $500 credit card.

    Kumar, Can you pls let me know if 1 year of credit history with $500 limit is sufficient to apply for normal credit cards as I have currently 1 credit card $500 limit with 10 months history.

    • Kumar Jul 12, 2012 Reply

      Ideally, you should apply for loans and credit cards with banks that have your checking or savings account. Well, 10 month history with $500 limit may not add much to your credit history. You should first ask your current $500 limit card issuer to increase the credit limit. Also, talk to the bank that you have checking account with, ask them the chances. To build history have your utility bills on your name or house rental agreement, etc. All these little things help.

    • Gulzar singh Feb 16, 2013 Reply

      Sir, i am indian, p c c diractor, sir req loan on road projact. India

  • Deep Apr 12, 2011 Reply

    Hi Kumar,

    First of all, I appreciate you for all your hard work in coming up with such an essential blog. I have some questions regarding loans. Suppose, after staying 6 months in USA, if I apply for an educational student loan/personal loan for a short amount (say $8000) from any local bank, can I get it, if I am their account holder till that particular period of time?

    Waiting for your kind reply.

    Thank You


    • Saurabh Apr 12, 2011 Reply

      Different banks have different policies. Some banks would extend the loan to temporary legal residents, while others would want a citizen or GC holder as a co-signer (so that they can get the loan from the co-signee in case you leave US w/o paying off the loan). You ca check the banks and credit unions to know which one of them are ready to extend loan to you.

      • Deep Apr 12, 2011 Reply

        Hi Saurabh!

        I thank you for your kind reply.


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