There are so many reasons to use a Personal Loan. Let’s take an everyday example of how someone could use a personal loan…
Let’s say you’re starting a home business. Yes, that can be exciting and terrifying at the same time. The goal is to be a raging success and completely self-sufficient. On the other hand, you have questions and fears about running a business. Isn’t it funny? When you have questions, sometimes answers disappear into the woodwork.
However, you found a home business you believe in. You know you can do this because the product worked unbelievably well for you. Unfortunately, in order to try the product, you had to dip into the rent money to buy it. Now you need help paying rent. What other costs are involved in running a home business?
So let’s see what are some of the reasons to take out a personal loan.
Reasons You Might Get A Personal Loan
There are dozens of reasons to get a personal loan. When people need help paying rent, that’s about as scary as it gets. Goodness knows, we understand that. There are other reasons people get personal loans, though. Just in case you can’t think of any, we’ll help out.
Your niece has decided to get married on a Greek island. You have never been outside the continental U. S. and want to go very much. So you take out a personal loan to attend a destination wedding, get a passport, buy your wardrobe, and book the trip. Don’t forget a wedding present and an extra suitcase for bringing back cool stuff.
Moving locally isn’t too expensive, but moving a couple states away or across country is. You might need a way to pay for moving all the cars in addition to moving the house. You could need furnishings, window treatments, or minor upgrades to the house when you get there. An extra money might just be required until your first paycheck from the new job comes in. Yeah, you could use a personal loan for moving.
The washer and/or dryer won’t wash or dry. The microwave blew, and the computer got wiped out in a thunderstorm. Those appliances and computer are expensive. Do you have enough in the bank to cover it? You’ll need a personal loan. You can tell them it’s loans to help with rent, but what you spend it on is actually up to you.
Flowers, caskets (and in some states like Georgia, vaults,) burial plots, the funeral service and other charges add up to the tens of thousands. Some families will only have the best quality casket, the most expensive spray on the coffin, the best wreaths, and other such things. If this is the case, you might need a personal loan to bury a family member or loved one.
At some point in time, every family has a decision to make. They can upgrade the home they’re in and stay for a few years and downsize or move up as the case may be. Sometimes the “upgrades” consist of gutters, new roof, and possibly fixing a cracked foundation.
Other home remodels consist of adding gardens, water scapes, planting trees, putting up a fence, a swimming pool, or adding heat to the driveway and sidewalk. Sometimes a personal loan is about new siding on the house, new natural stone veneers on the house, new windows and doors, or a new deck.
Today’s technology is so amazing that a home remodel is now a difficult thing to do. You have to choose between several types and styles of flooring, lighting, counter tops, and appliances. Do you want molding? Do you want craftsman-style caps on the door frames? How about tray ceilings or solar panels?
The truth is that your dream upgrades are going to cost you both arms and an ankle. Go ahead and make your dreams come true; you have to live there. Why not make it incredible? Just make sure to borrow enough on a personal loan to make it happen.
One of the most popular reasons to get a personal loan is to consolidate debt. Many people roll their credit cards into their debt as well. What they end up with is one monthly payment. It never changes, and interest rates won’t go up. Debt gone, easy to handle monthly payment, no outrageous interest payments; what’s not to love?
Some people save up all their lives to take that dream cruise around the world, to the canals of Venice, to the Asian bazaars, or to the snow-capped Alps. Wherever your dream vacation is located, get a personal loan and go before life stops you. You’ve worked hard, and you deserve it! Could you bring us back a cool T-shirt? Just kidding. Get out there and have some fun!
Benefits Of Personal Loans
Here’s how you can benefit from getting a personal loan for any of the above mentioned reasons.
Fixed Payments Are Easy To Budget
A personal loan is taken out in a certain amount for perhaps 24 months to five years. The payments will never change like credit card payments do. Payments are due the same date every month, making accurate budgeting a snap.
About Interest Rates
Two things about interest rates to which to pay attention are the interest rate and that the interest rate is fixed. Credit card interest rates are high, and they don’t stop climbing. Some credit card interest rates are 19 percent or higher. They vary monthly, making your credit card payments different each and every month. Some personal loans, for instance, have been known to have a six to seven percent interest rate (for those with outstanding credit.)
Since a personal installment loan has a fixed payment every month, then the interest is the same every month. It won’t rise or fall. It’s for the life of the loan.
Auto loans are secured by the car, and mortgages are secured by the house. Personal loans aren’t secured by anything. The penalties for defaulting on a personal loan aren’t pretty, but you won’t lose your house or car for doing it.
Some personal loans are secured; don’t get us wrong. Lots of people put up their car as collateral, especially if their credit isn’t sterling. It really depends on your credit rating.
Higher Borrowing Ceiling
Credit cards have spending limits defined by the card holder’s credit, income to debt ratio, bankruptcies, and credit score to name a few. While personal loans use these same criteria and more to judge if a borrower will repay the loan, their ceiling is higher. Credit card limits may go up to $10,000 for super-creditworthy customers.
Personal loans go higher than that. Using the same criteria that credit cards do, personal loan lenders can and do go up as high as $25,000 to $30,000.
Your Reasons For The Loan
Credit cards limit people to the places they can be used. Retail, online or in stores, is generally the limit for credit card use. However, personal loans can be used for any reason at all such as loans to help with rent.
On the other hand, some retail vendors don’t take credit cards at all. They don’t want to pay the fees that come with credit card processing. Many retail vendors will give discounts to their customers that pay in cash as well. So credit cards aren’t always where it’s at.
Raise Credit Scores
Credit companies love it when people have varying degrees of credit. When you take out a personal loan, even if it’s for loans to help with rent, and pay it back on time, your credit looks much better. More and more stores and services will be willing to extend credit to you. And all this from a personal loan to pay rent.
Loans used to generate several pounds of paper that borrowers had to fill out. Today, it can be done online in minutes, with the money in your account in hours. One of the reasons for this is the proliferation of lenders, from lending clubs to peer-to-peer lenders to traditional lenders. Competition often streamlines things, and it’s happened with lenders.
Where to Get a Loan
One of the best places to shop for a loan and get it is, believe it or nor, THE INTERNET. Yup, online lenders are a thing. And they’re the best thing you can possibly imagine. Getting a loan online means getting it quickly and effortlessly. The only thing you have to do is research to find a good lender and apply. Only two steps. And Loanry can help you with the first one. We connect you to reputable lenders, and our partner Fiona made this form for you to put your info in, so we can get you personalized offers now.
Making your new home business work will take focus and dedication. You’ll need funds for permits, payment processing, website, and marketing. Some of the benefits of personal loans are better interest rates, set repayment schedule, and no collateral.
There are personal loan lenders and there are people who point you toward the personal loan lender best suited to your circumstances. These people work with you to find a lender who will work with you as well, matching their lending programs with your needs. They’re conveniently listed with personal lenders, so please talk with them today.
Myra has written in a range of styles encompassing white papers, finance blogs, credit product descriptions, how-to manage finance pieces, professional articles for lawyers, finance experts, web designers and more. She has written for an equally wide range of clients on the topics of loans, personal finance development, credit reports and scores, taxes and many more.
Myra worked in a bank as a young person and has dealt with payment processors in the past few years in her financial services endeavors. She therefore understands how the system works.