Personal loans 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. If you're a homeowner, you can pull money from your home in the form of a home equity loan or line of credit, or by refinancing your mortgage (both of these approaches utilize the equity you've built in your home). These options are most commonly utilized by those who need larger amounts of money for BIG home reno projects. Instead, a personal loan can help to cover the cost of smaller-scale needs. It's also a great option if you don't have a home to leverage the equity from.
A Personal 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 anywhere from $1,000 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?
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.
PSECU's personal loan rates are very competitive - you can check them out here!
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.
Growing Your Family
When you've decided it's time to start a family - you don't want to wait! A personal loan can help with costs many couples incur who are utilizing fertility resources or planning to adopt. With a personal loan, you can secure the money you need to pay for all the costs associated with growing your family.
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. Just like using personal loans for a dream vacation, make sure you can meet the monthly payment obligations of the loan when it comes time to pay it back.
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. It could help you save on interest costs, compared to using a high-interest credit card to pay for wedding expenses.
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 rates and start the application process today.
