7 Reasons to Get a Personal Loan
This post was last updated on October 21st, 2019
With the ever-increasing number of online lenders, more Americans are taking personal loans than they do for other loans. In fact, personal loan balances in the US hit $273 billion in 2018, and this was an increase of 11.4 percent from 2017. Here are the seven reasons to get personal loans that have seen many consumers running for it. Notably, the purpose of taking the loan influences the rate, repayment term and size of your loan.
1. Finance home renovation
A personal loan is a handy solution when renovating your home. Whether you are looking to install solar panels, add swimming pool, hardscaping, landscaping, renovate your kitchen, change the roof, or add a hot tub, a personal loan can a better alternative compared to other loan options. This is especially so if you do not want to get a series of credit equity lines in you home.
2. Gather for moving expenses
While local movements can be affordable, long-long distance transfer like for a job opportunity can be costly enough to justify taking a personal loan. The loan can gather for buying the requirements for the new residence and transporting household belongings. As you plan to take a personal loan for your move, ensure that your new income is enough to settle the balance to avoid getting into financial problems.
3. Debt consolidation
A personal loan come in handy when consolidating debt. This happens in case of outstanding credit card debt and multiple loans that have different interest rates and balance due. By applying for a personal loan to consolidate debt, you combine all the unpaid balances into a one scheduled payment making it easier to plan a timeframe of paying it off.
You can also use personal loan to settle credit cards since the interest rates are low. With this, you can reduce the interest amount payable and the time it will take to pay off the loan.
4. Gathering for wedding expenses
Wedding loans are personal loans taken before walking down the aisle in style. Due to its flexibility, you can use the loan to cater for larger expenses like bride’s dress and venue and smaller ones like photography, wedding coordinator, flowers and cake. You can also use it to buy an engagement ring that may cost more than your salary.
5. Buying a car, recreational vehicle or boat
Considering to buy a car, recreational vehicle or boat? This can be a good reason for a personal loan especially when you do not have much money at your disposal.
6. Taking a vacation
An average holiday might not be that costly as to require taking a loan, but there are vacations that can be beyond your means. Whether you want to go on a distant trip, celebrate an anniversary or take a leave after graduation, a personal loan can help you finance your desired vacation.
7. Paying medical bills
This is another reason why you might go for personal loans. This is especially so when you cannot pay from your pocket. Examples of costly medical expenses include cosmetic surgery, dental and fertility treatments that can cost over $5,000.
Personal loans have increased in terms of popularity over the recent past due to stress-free online lending process and low interest rates. As the competition in the personal loans market is getting stiffer due to high demand, lenders have no other option than to reduce their rates to attract the attention of the borrowers. For people with bad credit though, there is no reason for worrying since guaranteed installment loans options are within reach.
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