Personal loans are gaining popularity with both borrowers and lenders these days as Americans’ debt climbs to record levels, and borrowers look for alternatives to conventional “secured” loans in which the borrower pledges the equity in their car or home as collateral if the loan isn’t repaid.
Even if you don’t qualify for a secured loan, you may be able to get a personal loan, based on your credit rating, monthly income and cash-flow, and other credit and financial criteria.
Personal loans typically require less paperwork and can be approved faster than secured loans. Unlike credit card debt, your monthly personal loan payments will last only for a specific period of time, and won’t change during the life of the loan. Best of all, a personal loan can cost less than using credit cards, which often charge interest rates of 20 percent or more.
In general, financial advisors recommend personal loans as a useful tool for repaying high-interest-rate debts and becoming debt-free, but not for delaying repayment of your debts.
There are lots of reasons why you may need to borrow money, but here are the top five ways that our customers use their personal loans:
1. Credit Card Refinancing
Paying off your high-interest credit card debt can be a great way to use a personal loan. Credit cards tend to be one of the most expensive ways to borrow, and borrowers with good credit ratings can often qualify for a substantially lower-rate personal loan to pay off an outstanding credit card balance. Many borrowers are able to save money by paying off their new fixed-rate personal loan faster, thus lowering their overall interest costs.
2. Debt Consolidation
Keeping up with multiple bills and loan payments can drive you crazy, and many personal loan borrowers find that the ease of paying just one loan bill every month greatly simplifies their life and reduces the stress of managing their personal finances. Consolidating debts allows you to combine any unsecured debt – including medical bills, payday loans, student loans, credit card bills and more – into a single loan with one easy to remember monthly bill. Debt consolidation is one of the best, most popular uses for our personal loans, and can save you both time and money.
3. Home Improvement
Your home may well be your single biggest investment, and remodeling or taking care of long-overdue repairs can boost its value, make it easier to sell and greatly improve the comfort and functionality of the place you live. And remember, no equity is required to take out a personal loan for home improvements.
4. Major Purchase
Sometimes life surprises you with unexpected expenses that simply aren’t in the budget. Whether it’s a new washer and dryer to handle your growing family’s laundry or a new engine for the family car, our personal loans can help you out of a jam. Depending on your financial situation, we can loan you up to $40,000 – no questions asked – to get you through whatever situation might arise.
5. Wedding
Money shouldn’t stand in the way of making your wedding the once-in-a-lifetime event you’ve always dreamed of. An exquisite Vera Wang wedding dress, or that four-star beachfront hotel for the wedding reception may be just what you need to make your special day absolutely perfect. Don’t worry, we can help you pay for it.
At Credit Direct, we understand that are many reasons you may need a loan, and we want to make the application and approval process as simple and fast as possible. For more information, or to start an application, click the “Apply Now” button below or call 866-414-4198.