Today, consumers have many choices when it comes to financing. Credit cards, mortgages, home equity lines of credit, and personal loans are all options for borrowing needed funds. Personal loans can be a convenient way to borrow money for expenses up to $25,000 and are paid in monthly installments.
What is a personal loan?
A personal loan, also known as an installment loan, is money borrowed from a financial institution. This is normally from a bank, credit union or lender and you pay back in fixed monthly payments. Personal loans have a typical term of 1 to 5 years, with varying lender rates from 3% to 36% APR. To determine if a personal loan will fit your needs, consider the following benefits:
Benefits of Personal Loans
- Take care of unexpected expenses. Personal loans allow you to pay for unexpected expenses such as car repairs, home repairs, medical bills, or other emergencies. Personal loans can spread the cost of unexpected expenses over a period of time, making less of an impact on your monthly budget.
- Make your monthly budget more predictable. Because personal loans are typically paid in monthly installments, you know how much your payment is each month. Using a personal loan for unexpected expenses or debt consolidation can help you in your monthly budget process. You can manage or predict your monthly expenses more accurately and plan for future expenditures.
- Use a product or service now and pay over time. With a personal loan, you can enjoy new furniture, a home improvement project, or a vacation now and pay over a period of time. Maybe you have been putting off taking a family vacation because of your current budget. A personal loan could make it possible for you to take the vacation now and pay for it over a period of time with a payment that will fit in your current monthly budget.
- Simplify monthly payments. Making your monthly payments on time is crucial to your credit score and financial health. Using a personal loan to consolidate existing debt can simplify your finances by having fewer creditors to pay and fewer due dates to remember each month. Additionally, if you use recurring payments, your bills will be paid on time each month.
Learn More about Personal loans
You can learn more about personal loans from our partners at the American Financial Services Association (AFSA). The AFSA Education Foundation provides information to educate consumers of all ages on personal finance concepts, responsible money management skills, and to help promote an understanding of the credit process. You can learn more by visiting afsaef.org.
Could a personal loan fit your current situation? We’ve made it simple to apply. You can apply online for a personal loan, by phone, or by visiting one of our branch locations. Our staff can help you find a solution for your unique situation.
