Are you considering taking out a personal loan? This form of borrowing offers a great deal of flexibility and is a popular option among those who want to pay off high-interest personal debt or fund a once-in-a-lifetime event.
Many people are uncertain about what they can finance with a personal loan. Here’s a look at the many ways you can use a personal loan to enhance your life and even save yourself money in the long run.
Do I Need a Personal Loan?
Why should you take out a personal loan? If you need a significant sum of money at once, a personal loan may be the answer. While you can pull money from your home in the form of a home equity loan or line of credit, second mortgages are usually reserved for those who need larger amounts of money for things like remodeling a kitchen or landscaping their backyard. Instead, a personal loan can help to cover the cost of smaller-scale needs.
Still uncertain if this is what you need? These details may help. A Signature Loan from PSECU is a personal loan that:
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Does not require any collateral.
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Allows you to borrow up to $20,000.
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Often has a lower interest rate than a credit card.
What Can I Use a Personal Loan For?
You can take out a personal loan for a range of reasons. Here are a few examples of how a personal loan can help you.
Paying Off High-Interest Credit Cards
The interest rates on personal loans tend to be more favorable than those on credit cards. If you have multiple cards with balances, you can pay them off and consolidate your payments, reducing them to just one monthly personal loan payment.
However, before you go this route, you may want to check if you’re eligible for any balance transfer offers that might fit you better. Consider interest rates, terms, and fees to decide what might be the best option for you.
Closing Out Your Student Loans
Speaking of consolidation, if you have multiple student loans, you may be able to pay them off with a personal loan. Some advantages of this include:
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You may get a more favorable interest rate on your personal loan.
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You will have fewer bills to keep track of.
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You can relieve cosigners, such as your parents, on your student loans.
Whether this is a good fit for your situation will depend on how the interest rates and terms and conditions of your student loans compare to those of a personal loan, as well as what other consolidation options you may have.
Financing Medical Bills
Did you or a loved one need an unexpected surgery or dental procedure? Such surprises can be costly, and you may not have the money saved to pay for them. While many medical offices offer financing, sometimes they have steep interest rates and short repayment timetables.
A personal loan allows you to pay off the doctor’s or dentist’s office in a timely fashion and repay the debt at a more comfortable pace - and maybe even at a lower interest rate.
Footing the Bill for a Dream Vacation
Many people take out personal loans to take care of personal debt, but you can use them for enjoyment, too. Maybe you’ve always dreamed of traveling abroad or vacationing overseas. You may be confident that you’ll eventually save up enough money to go, but what if you want to take the trip now, while it fits into your schedule or when you can find the best deal?
A personal loan can give you the upfront financing to take the type of trip you want. Just be sure that you’re able to handle the payments after you return from your vacation.
Adopting a Child
Don’t let your lack of upfront funds stand in the way of adding to your family through adoption. With a personal loan, you can secure the money you need to pay for the paperwork, medical expenses, and travel required to bring your little one home.
Buying an Engagement Ring
You may be ready to commit to your partner, but is your bank account ready? You can take out a personal loan when purchasing an engagement ring or wedding band. A ring is a symbol of your love for one another, and your future spouse will most likely wear it every day, so it’s important you invest in the one they love.
Paying for Your Wedding
Are you getting married? Or is one of your children getting married? A personal loan can help pay for wedding expenses such as the reception venue, a photographer, a DJ, a caterer, and even the honeymoon.
How to Take Out a Personal Loan
Now that you have an idea of why you might need a personal loan, the next step is applying for one. Learn more about our personal loan’s rate and start the application process today.
