Whether you’re wanting to renovate your home, go on a dream vacation or pay off some debt, a personal loan may be the solution for you. A personal loan provides you with one lump sum of a fixed amount of money. The amount varies depending on the lender, but often can be anywhere from $1,000 to $30,000. Rates vary, as well, and are generally based on your credit score and the term of the loan selected. Unlike many other types of loans – car, home, business, etc. personal loans can be acquired for a variety of reasons.
Learn more about personal loans and a few of the most common reasons people get a personal loan.
1. Debt Consolidation
Debt consolidation is one of the most popular reasons people take out a personal loan. When you take out a personal loan to consolidate debt, you’re combining any outstanding debt of other loans and credit cards, under one monthly payment, often times at a lower interest rate. This makes it easier to manage paying off balances.
2. Emergency Expenses
There are some things in life that we just can’t be prepared for, and sometimes those things come as a major expense. Common examples of emergency expenses covered by personal loans include funeral costs and medical bills. Once approved for a personal loan, cash is provided almost immediately, making personal loans a popular option for covering emergency expenses.
3. Household Goods
Because so many people are spending more time at home these days, many people are using personal loans to upgrade household goods, and in some cases finance home remodels. Whether it’s adding a home theater, upgrading the patio or finishing the basement, a personal loan can go a long way when it comes to updating your house.
4. Wedding Expenses
Another common use for a personal loan is to cover wedding expenses. This can include major expenses like the venue or smaller expenses like the cake and photographer. Regardless of how you use the loan to pay for your wedding, a personal loan allows you to pay for your expenses upfront and lessen the strain on your savings.
5. Vacation Costs
If you’re planning a once in a lifetime trip but need a little help covering the cost, a personal loan can do just this. Don’t wait to book your dream vacation!
Personal loans are a great option for assisting with a number of planned or unexpected expenses. Be sure to do your research and find the right personal loan for you. Learn more about our current rates, contact a credit union representative at 402.292.8000, chat with us via videobanking or apply online.