If you need cash, you may be wondering if a personal loan is a good option. For many it is. It all depends on why you want the loan in the first place. Here are eight reasons to consider getting a personal loan.
1.) Less expensive than using credit cards – Chances are you have one or more credit cards. If you do, you know just how high the interest rate can be. If you have a large balance, it can take years to pay it off. Personal loans, on the other hand, tend to be less expensive. First, the interest rates are normally lower than what you would find on a credit card, and there are no balance transfer fees or cash advance fees.
2.) Personal loans are unsecured – An unsecured loan means you do not have to have collateral to obtain the loan as you would if you were getting a mortgage or a car loan. Instead, being approved for a personal loan depends on factors such as your credit score and your work history.
3.) Debt consolidation – If you owe money on several credit cards, it can be a good reason to consolidate all of your debts into a personal loan. In the long run, you will pay less interest, and in the short run, your payment may be less than the multiple bills you are currently paying. Just keep in mind, that you don’t want to load your credit cards back up with debt after consolidation.
4.) Use the money for whatever you want – Unlike a mortgage or car loan or even a store credit card, you can use the funds from a personal loan for anything you would like. That can include making home or vehicle repairs or even taking a vacation or buying furniture.
5.) Cover health insurance deductibles – In today’s world, it is a good bet that you have a pretty high deductible on your health insurance plan. If you become ill or are in an accident, you might have to pay quite a bit of money, even thousands of dollars, out of your pocket to cover your deductible. A personal loan can help with this.
6.) Help with emergencies or unplanned expenses – Unfortunately, life can come at you pretty fast sometimes, and that means an unexpected expense or emergency. Whether you have a car accident or your furnace dies in the middle of winter, if you need help covering the cost, a personal loan is a great option.
7.) Keep bills away from collections – You may not realize it, but if you have medical expenses that are unpaid, the hospital or doctor may work out a payment plan for you, but they might also report the unpaid portion to the credit reporting agencies. Your credit score can take a real hit. With a personal loan, you can pay off the medical expenses and then pay off your loan monthly without any negative consequence.
8.) Deal with dental expenses – For most people, their insurance policies don’t offer much dental coverage. The problem is, dental care is very expensive. If you need to have a lot of work done, a personal loan will help you cover the costs, so you can have a healthy smile without the stress of how you are going to pay for it.
If you’re looking to obtain a loan, consider a personal loan. It is a great option for many reasons. You can be approved quickly, and use the money for whatever you may want or need.
This information was brought to you by BetterLoanChoice
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