5 Reasons to Take Out A Personal Loan

Personal loans are a worthwhile option for a variety of circumstances and can be used for just about anything. They are justifiable when it’s a less expensive option than other forms of credit and when you can comfortably afford the monthly payments for the duration of the loan term.

However, before you take out a personal loan, make sure to shop around for the best interest rates and terms! You should also examine your budget to determine whether you can make the monthly payments on time and within the set schedule. If you’re able to do both, a personal loan may make sense for your needs. An additional bonus is having a positive impact on your credit score.

If you’re deciding to get a personal loan, read this article to see what you can use your personal loan for!

1. Medical Expenses

Medical expenses can get pricey and not paying your bills can harm your credit. These bills that go unpaid will end up with a collection agency that will report the past-due account to credit bureaus. This will cause a major hit to your credit score. However, if you’re able to make the installment payments, a personal loan can help you pay off medical debt and could be a good way to protect your credit.

2. Debt Consolidation

This is likely the most common reason for getting a personal loan. Consolidating your debt can help boost your credit and organize everything into one easy loan payment! Often times, personal loans have lower interest rates and can help reduce the amount of interest you’re paying on other debt when you consolidate.

3. Small Business

Whether you’re looking to start a small business or a side hustle, a personal loan may be the key to getting your ideas up and running. The most important thing about starting a business is balancing your budget so you don’t find yourself in a debt hole down the road.

4. Vacations

Financing a dream vacation is another excellent opportunity for a personal loan if you know you can repay the loan on time. Sometimes it’s good to treat yourself to a splurge-worthy vacation or the honeymoon you’ve been putting off.

5. Weddings

Weddings can be stressful and expensive. A personal loan can help alleviate some of that stress coming from the cost, so you can have your dream wedding! Be sure you are keeping the payment amount in mind to ensure your credit score is unaffected.

The bottom line is that personal loans can benefit you in a lot of ways from financing your dreams to paying down your debt. They can also help positively impact your credit score if payments are made on time. Finding the right personal loan makes all the difference in the world. If you have any questions or would like to speak to a lending professional, give us a call at (303) 458-6660 or email lending@rmlefcu.org.