Why Get a Personal Loan?

Woman giving money to a man

You know about credit cards and home equity loans, but do you understand the benefits of taking a personal loan? They can help you:

  • Make a wide variety of purchases
  • Avoid hefty credit card interest rates
  • Consolidate or refinance high-interest debt
  • Avoid using your home as collateral

Let’s take a quick look at what these small loans are and why you should get a personal loan.

What is a Personal Loan?

As the name implies, a personal loan is taken out for personal reasons.

  • When you take out a mortgage or an auto loan, you need to spend that money on a home or a vehicle.
  • When you take out a personal loan, you can theoretically spend it on anything you want.

As installment loans, you’ll receive your money in one lump sum and then be expected to repay it in fixed amounts on a monthly basis.

Why Get a Personal Loan?

Flexibility is a key selling point of personal loans. You’ll probably have to report your reason for borrowing, but you should have a lot of leeway. You could use the money to:

  • Make a Large Purchase
  • Take a Vacation
  • Pay for a Medical Procedure
  • Buy a Wedding or Engagement Ring
  • Make a Home Improvement

Where you want to take a trip to from Idaho to Michigan or buy a boat in Wisconsin, a personal loan can work for you, and they’re fairly easy to get.

Why Use Small Loans to Cover Credit Card Debt?

Some people assume credits cards are the best option, but rates are generally much lower when you take a personal loan, so you’ll save significantly on interest.

In fact, consolidating or refinancing high-interest debt is a very good reason to take out a personal loan. If you have several credit cards, the interest rates alone could be killing you. If you choose to pay off your credit card bills with a single personal loan, you’ll save plenty on interest. You’ll even save over consolidating using a 0% card since no hefty balance transfer fees are applicable.

It’s also smarter to use a personal loan for a home improvement project instead of a home equity loan because you won’t be using your home as collateral.

Talk to Xpress Cash About Our Personal Loans

If you think a personal loan could improve your financial life, contact Xpress Cash today or visit your nearest location. Our team members are always ready to offer friendly and impartial financing advice.