Personal Loans
10 Common Uses for a Personal Loan
Unsecured, meaning you do not have to put up collateral
Can be quick and easy to get
Paid back over two or three years
Low interest rates for those with good credit
Improve your credit score with on-time payments
If an emergency expense arises, you may be thinking you’ll just put it on your credit card. While a credit card will pay for the expense, unfortunately you’ll pay significantly more in interest until the balance is paid off.
With a personal loan, you instead receive a low, fixed interest rate and fixed monthly payments. You can choose your term (typically up to three years) and pay the loan off at an affordable rate.
However, it’s important to note that if you are planning on paying off the balance within a month or two, a credit card could be the best option for you. Speak with a professional financial advisor on your unique situation.
Payday loans and personal loans can both be used as a way to get cash for unexpected expenses, but they are not created equal. Payday loans often require little paperwork and no credit check, asking for only proof of income – unlike personal loans, which generally require stringent credit checks and good credit. This may sound like a win for payday loans, but you can potentially dig yourself deeper into debt due to the high fees, interest rates and costs charged for payday loans. A personal loan instead can help you pay off debt or meet expenses without taking out additional loans. Personal loans also typically have lower interest rates and fees, and might offer higher loan limits than payday loans while being repaid over a longer term with lower payments.
Estimate your monthly payment with our personal loan calculator, then comparison shop offers from our network of lenders.