When it comes to getting a loan, the first reasons that come to mind might be a car, home, and paying off credit card bills. Other circumstances, however, can render it necessary to take out a personal loan. Therefore, it is imperative to look at your overall budget before deciding if a loan is what you need. Below are a couple not as common reasons you can take out a personal loan:
- Moving costs – Many places require you to pay some up-front fees when moving. Examples of expenses are the first month of rent, the last month, or a security deposit. A personal loan can help fund this step to moving into your new location.
- Emergency Cash Assistance – Sometimes, you’ll need money to cover some bills promptly. A personal loan would be great to help with things like catching up on a bill, medical bills, funeral expenses, and others.
- Appliance purchases – Household disasters can strike unexpectedly. Suppose you suddenly need to buy a new washer and dryer but don’t have the funds on hand. In that case, a personal loan can provide relief and allow you to purchase major household appliances and electronics immediately, rather than having to wait months to save up for them.
- Debt Consolidation – Debt consolidation is one of the most common reasons for taking out a personal loan. One of the best advantages of using a personal loan to pay off your credit cards is the lower interest rates. With lower rates, you can reduce the amount of interest you pay and the amount of time it takes to pay off the debt.
- And so many more!
For more purposes of a personal loan, check out the Forbes article here. If you need a personal loan, or want to talk with a Member Service Specialist to see if this type of loan is right for you, stop into your local American 1 Credit Union or click here to apply today!