By Arina Smith
The personal loan can be just the thing to smooth over finances during rough financial patches. They can also allow you to more easily afford that dream vacation you’ve been working so hard for but never seem to have enough money to make it happen.
Why You Should Consider a Personal Loan:
There are many reasons for considering a personal loan this year. Here are just a few of the most common reasons people have taken out a personal loan in the past.
Consolidate debt and pay off credit cards:
Among the most common reasons behind many personal loans is the need to consolidate some form of debt. This can be other loans, credit card debts, vehicle or home loans and more. Sometimes taking a personal loan is the quickest and surest way to keep other creditors at bay.
Home remodeling and purchasing of major appliances:
A personal loan is also a great way to fund an addition, or repairs, to your home as well as purchasing major appliances. This could be a swimming pool, landscaping, roof repairs, washer and drier, and more.
Paying for a wedding:
Whether your wedding or the wedding of your children, a personal loan gives you the financial freedom to throw a wedding without missing a thing. This can be for the entire wedding or just one aspect such as an expensive venue or wedding coordinator.
Other reasons to consider a personal loan:
Among the many reasons people consider taking out a personal loan are relocation expenses, funeral arrangements, dream vacations, purchasing a new vehicle, and unexpected medical expenses that your regular paycheck won’t cover.
What You Should Know About Personal Loans:
There are several important factors to take into consideration before making a decision about applying for a personal loan. Among the most significant aspects to think about are:
The overall process:
A personal loan is more or less an installment loan. Meaning, you apply, are approved, and receive a set amount of money that you will pay back over the course of several months or years.
How much money you can borrow:
Depending upon the lender, your current financial situation including your credit score, personal loans may range from under $2,000 to over $100,000.
The different types of personal loans:
There are two main types of personal loans: unsecured and secured. An unsecured loan is based on your credit and is not backed by collateral. On the other hand, secured loans are backed by some sort of collateral such as a house, car, or bank account.
Our Picks for Best Personal Loan Options of 2019:
Marcus by Goldman Sachs is among the highest rated personal loan lenders. All loans from Marcus come with fixed monthly payments as well as fixed interest rates. They provide loans online up to $40,000. APR ranges from 6.99 to 24.99 and repayment terms last from 36 to 72 months.
Social Finance is another great choice for a personal loan of up to $100,000. Payments are set up for automatic monthly deposits and you have anywhere from three to seven years to repay your loan. APR ranges from 6.99 to 14.99.
Simple Personal Loans is another less heard of but equally impressive personal loan option for 2019. Simple Personal Loans gives you access to some of the best APR rates in the industry. That goes for those with bad credit as well. Furthermore, regardless of your financial status, Simple Personal Loans offers a smooth and convenient process all via one application on their website.
Hopefully, this article will help you decide if you should take a personal loan and help you out with some of the best options there are.
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