DIFFERENT USES FOR PERSONAL LOANS
Different Uses For Personal Loans
Personal loans can be used for anything, but they are usually used to consolidate debt.
Here is a look at different uses for your personal loan that you may not have thought of.
Make It Green
You can use a personal loan to make your home more environmentally friendly. These types of home renovations can actually help you to save money in the long term, improve the energy efficiency of your home and also reduces your carbon footprint, making your home better for the environment.
Weddings can cost a lot of money and many people will turn to credit cards to help cover these costs. However, credit cards have a high interest rate and a personal loan might be a better choice to cover these expenses.
If you have yet to create a line of credit for your business and you need to start from scratch, then you may want to think about taking a personal loan that will help to get things moving.
Vacations can be expensive especially if you are flying to your destination and even more so if the whole family are going on holiday. You can use a personal loan to pay for this and using some money saving tips you can make the loan go even further.
A Major Purchase
If you need to buy something that doesn’t fit into your monthly budget like an appliance, furniture and other such things then you can save up for the item, but you could also finance these purchases with a personal loan.
Even if you have medical insurance, it might not cover everything and if you don’t have insurance then you will need to pay the full medical bill. Instead of leaving your medical bills unpaid, you can pay them through the use of a personal loan.
Making home improvements or renovations can cost quite a bit of money and few of us will have this type of cash saved up. You can pay for the costs of home improvements with a personal loan.
A personal loan can be used for anything that you want, as you are not restricted like with other loans. A personal loan should only be taken though if you are able to make the monthly repayments.
WHAT TO USE PERSONAL LOANS FOR
What to use Personal Loans for
What can you use a personal loan for? Well borrowers can use a personal loan for pretty much anything.
Why Take a Personal Loan
Personal loans were once used for large purchases like home appliances. Now though even though these purchases are to large to be covered by one months paycheck they can still be paid off quickly due to financing options on offer or payments can be spread out over a credit card.
A personal loan is then used for:
- Debt consolidation – if you not able to get a secured loan then a personal loan can be used to consolidate debt with a lower interest rate than a credit card.
- A Wedding – weddings can be expensive and many couples and parents will take out a personal loan to pay for this.
- A vacation – a large vacation can be paid for through a personal loan.
Combining with Credit Cards
One reason that a personal loan could be taken is to take advantage of the benefits that are offered by credit card companies and retailors.
For instance you may want to pay down your credit card balance and transfer them to an account that has a 0% rate for up to 18 months and then pay off as much as possible in that time. At the end of the term though the rate will increase. It might be a wise move to pay the remaining balance with a personal loan that has a lower interest rate.
There are also retailors that offer 0% financing for a certain time, but if the balance is not repaid on time then interest rate will start. Consumers can avoid this by transferring the balance to a personal loan before the end of the term.
Consumers might also use their credit cards to make expensive purchases to take advantage of the rewards programs. However, the interest rate that is on the rewards cards is often higher than other credit cards. The balance could then be paid off using a personal loan.