If you had to guess what the number one reason is that people take out a personal loan, what would you guess? Would you be surprised to learn that personal loans are most frequently used to pay down other debt such as credit card balances?
This is actually a really smart way to get out from under the burden of ongoing credit card debt. But if you have never taken out a personal loan before, you may feel understandably intimidated or even unsure if you can qualify.
The good news is, taking out a loan is just a process like any other and it is easy once you have done it once. And here’s more good news – there are plenty of loan options, so chances are very good that you can find the right option that you also qualify for.
Regardless of your reasons for taking out a personal loan, it is important to know what you are going to get, so that is what this blog post will focus on.
6 Personal Loan Perks
The following six tips represent just a handful of the major benefits and perks that a personal loan can offer to you.
#1. Flexibility.
One of the most compelling benefits of taking out a personal loan is that you can use the money for pretty much any financial need that you have. You don’t even have to tell your lender what you need the funds for! You can go back to school, take a vacation, pay down credit card debt, start a small business – the flexibility is there.
#2. Time.
Regardless of what you need the personal loan funds for, a personal loan will give you one thing you will be hard-pressed to find in any other way, and that is time. Whether you need that time to devote to starting a new business, to appease credit card creditors, to just relax and enjoy life, to recover from an injury or illness or to throw your dream wedding, the time will arrive the moment the funds are deposited into your bank account.
#3. Lower interest rates.
While a personal loan may come with higher interest rates than some bigger ticket items such as a mortgage loan, you will still likely qualify for significantly lower interest rates than what you must bear when you carry balances on your credit cards. So from day one of receiving your personal loan money, you have already made a noticeable dent in your debt just by freeing yourself of the burden of accruing interest.
#4. Options for all types of credit.
If you have excellent credit, you are in the minority today. But if this describes you, then you may opt for an unsecured loan, which can net you a lower interest rate on your loan funds. But even if you are still working to improve your credit, with a secured (collateral guaranteed) loan, you can qualify for the personal loan money you need. There are many options for all situations in the personal loan industry today.
#5. You can get enough funding to do something significant.
According to the Small Business Administration (SBA), more than 600,000 new businesses launch each year. The typical personal loan can fund you up to $25,000 or more, which is more than enough funding to get many solopreneurs and small businesses up and running. For many talented people today, a personal loan is what gives them the chance to start a whole new, exciting career path!
#6. No waiting around.
In the credit and loan industry, a personal loan is viewed as a vehicle to get loan funding quickly. So you don’t have to wait a long time (like you do with many traditional bank loans or mortgage loans) to find out whether you are approved. Many personal loan lenders can tell you in as few as 24 hours that you are approved for a personal loan and how much you can get. This also means that if you are presented with a sudden personal or business opportunity, you can qualify for funding quickly to take that great opportunity and run with it!
Contact Us to Learn More
Here at DrCredit.com, we help you connect with lenders who can meet your personal loan needs. We are a free service and we encourage you to read through our helpful blog posts to learn more about how and when to look for a personal loan and how to evaluate your lender options.
If you are ready to get started, you can fill out our quick one-page free application right away. If you have more questions, please reach out and we would be happy to answer them!
