6 Benefits of Personal Loans

Many people in Buck’s County and across the country find the need to borrow cash at some time or another. Knowing the type of loan to apply for can be confusing. Personal loans are a popular choice for many reasons. Many personal loans, including a Spirit Financial Credit Union personal loan, can be applied for quickly and easily right online. It makes them a great choice for quick cash needs. Here are just some of the many advantages of a personal loan.  

Personal loans provide you with flexibility.

You can pretty much use the funds for whatever you’d like. Examples of how you might use a personal loan include consolidation of high interest credit card debt, home repair or home improvement project, to purchase a car or for an auto repair. Other uses might be to pay for a wedding or another big event, for a large purchase, for an unexpected expense, or to take a vacation. You get the idea. You have the flexibility to apply for a personal loan for just about any reason at all.

A Low-interest rate personal loan makes it ideal for paying off higher interest debt.  

A personal loan enables you to borrow the cash you need to pay off those high-interest balances. It can help you better organize and consolidate your existing debt into one more manageable monthly payment. To sum it up, once you start consolidating all of that high interest debit into one low-interest personal loan, you are sure to see some savings.

A personal loan can add to your credit mix and help improve your credit score.

Of course, you’d need to make all of your loan payments on time and keep your credit utilization down for this to be the case. Credit mix is a factor in your credit score, so diversity of accounts is a plus. Consequently, if you don’t already have a loan in the mix, it can be a help.

Personal loans can be a source of cash in the event of an emergency.

Many of us may be faced with a financial emergency at some point or another during our lives. An unexpected medical expense, the breakdown of a major appliance or an expensive car repair. We’ve all felt the stress of these urgent situations. When the unexpected happens, and you find yourself with no emergency savings, a personal loan can be the solution you need.

Personal loans can be easier to get for qualified borrowers.

Applying for an unsecured personal loan is usually pretty quick and simple. Another plus is that no collateral is required for most personal loans. This can make the whole process a lot easier for borrowers. As with any loan, your credit score and credit history will have a big factor on your getting approved. Keep this in mind.

Fixed-rate payment helps you to budget more effectively.

A fixed-rate personal loan and flexible loan term can help you come up with a monthly payment you can count on and can afford. The fixed-rate will help eliminate the monthly payment guesswork.  

APPLYING FOR A PERSONAL LOAN

Before you apply for a personal loan, try to estimate exactly how much money you will need and how you will be using it. Take some time to shop lenders for the best personal loan rates and terms. Include Spirit Financial Credit Union or another local credit union in your search for the best lender. Calculate and be aware of the monthly payment, terms, and all fees and costs associated with the loan. You will want to be sure before you complete the personal loan application, that the loan payment fits In your monthly budget. You can compare various rates and terms easily on our online loan payment calculator. Want to learn more about personal loans? Read our blogs Personal Loan vs PLOC and Personal Loan vs Credit Card.


Greg Quinn