There's no limit on the number of ways you can use your personal loan. Your lender may want to know your general plans for the funds but once the money is yours, you can just about use it as you please.
If you're looking for ideas, some definite trends show the most popular reasons to get a personal loan. Read on to see how a personal loan could be the right financial tool for you.
1. Debt Consolidation
This has got to be number one on the list – because why would you want to juggle multiple credit cards and loans when you can put all your debt in one convenient place?
Consolidating your debt through a personal loan means you could have a single monthly payment instead of many. It's much easier to keep track of a single due date. Plus, you'll get one competitive interest rate instead of battling to keep up with your high-rate credit cards.
Debts you could consolidate include:
- Credit cards
- Store card balances
- Student loans
- And more!
2. Home Improvements
Maintaining and upgrading your home is a never-ending task. A personal loan could help you tick one major project off your list, or let you take care of multiple expenses to bring your home up to the standard you desire.
Home improvement tasks may include:
- Fixing a sink or other plumbing issues
- Remodeling your kitchen
- Buying a new dishwasher or another appliance
- Upgrading furniture
- Repairing a roof, fence, or other external feature
Another option for home improvements is a Home Equity Loan. The interest you pay on a home equity loan might be tax deductible when you use the funds to renovate or remodel your home.
3. Medical Bills
Medical treatments are often essential to ensure a good quality of life and your family shouldn't have to wait until there's room in the budget to book an appointment. Besides, medical bills are inevitable whether you have insurance or not.
Medical expenses may include:
- Your monthly premium and copays
- Out-of-network and out-of-pocket bills
- Prescription costs
- Vision or dental bills
4. School Tuition
Education may be the ticket to your dream job or a promotion in your current field – but sometimes it takes just a little more money to make your study experience a lot more enjoyable.
Education-related expenses may include:
- Books and resources
- Laptops and other technology
- Living expenses
In addition to a personal loan, you might consider a Private Education Loan, which can help fill the gap between tuition costs and any grants or scholarships you receive.
5. Special Events
Whether you're the star player or one of the guests, the expenses for special events can quickly pile up. You may need new clothes for the occasion and there might be travel involved, too.
Special events may include:
- A dream vacation
- Major birthday celebrations
You might be the sort of person who starts planning for the holiday season months in advance, or you may be the type to get everything last minute. Either way, a personal loan can help you meet all your end-of-year expenses.
Extra costs around the holidays may include:
- Celebratory meals for extended family
- Home decor for Halloween, Thanksgiving, Hanukkah, Christmas, and more
- Gifts and party favors
- Travel and accommodation expenses
- Child care when kids are out of school
If you prefer to keep your holiday expenses completely separate, a Christmas Club Account could be right for you. This convenient account lets you save money throughout the year then access the funds when it comes time to buy all those gifts and decorations.
7. Emergency Fund for Unforeseen Expenses
No rule says you need to spend every dollar of your personal loan. In fact, you may choose to put some or all of the funds aside and keep the money as a financial safety net to use on a rainy day.
Reasons to use your emergency fund may include:
- Vehicle or home repairs
- Medical or dental emergencies
- Sudden travel to see loved ones
8. Alternative to a Payday Loan
Sometimes your paycheck doesn't get you through and maybe you don't want to make any charges on your credit card either. One way to use your personal loan is to have the money on hand to cover your essentials in those months you fall short.
Regular expenses you can pay may include:
- Mortgage or rent
- Utility bills
9. Moving to a New House
It’s widely known that moving is one of the most stressful things in life – and also one of the most expensive. But you can relax knowing you've got it all covered with a personal loan.
Moving expenses may include:
- Short or long-term storage costs
- Hiring a moving truck or paying a moving company
- Cleaning the old place and paying for inspections
- New furniture, kitchenware, and other items
10. Creative Pursuits & Other Projects
A personal loan can be used to fund anything in your imagination, from a new workshop to the materials for a side hustle. You could even use the money to do some kind of research and development.
Creative reasons to get a personal loan may include:
- Building a garden shed
- Buying art supplies
- Investing in software or specialist books
Ready to Apply for a Personal Loan?
A personal loan could be the key to simplifying and elevating your life. If you've nodded your head to one or more of the ideas in this article, then you might be ready to take the next steps.
All you have to do is pick a lender and apply. Be sure to shop around for the best rate and remember that credit unions frequently offer the most competitive deals.
Click below to find out everything you need to know about personal loans from Greater Texas Credit Union!