5 Reasons for Getting a Personal Loan

"5 Reasons for Getting a Personal Loan"

Personal loans aren’t just for financial emergencies. You will be surprised to know that there are a number of ways you can actually benefit from getting a short-term loan, which can help you manage your finances better.

In fact, when used responsibly, you can even use your payday loan to improve your financial wellbeing. Intrigued to know how? Read on to know how you can make your personal loan work for you, should you need it for things other than a financial emergency.

1. Hospital check-ups

Drawing from our experience, you may have found yourself availing of a short-term personal loan for medical emergencies like accidents or illnesses. Events like these are inevitable, and sometimes we are short on funds that prompt us to get help from lending institutions.

In non-urgent medical situations, however, you can also use a personal loan to cover your hospital expenses. For example, you may need it to finance your annual executive check-up should you find yourself short on funds to cover this expense.

Whilst there are public hospitals that provide their services for free, outpatient expenses like medications need to be paid for by you in order to ensure your recovery. In times like these, availing a personal loan is a smart move to cover for hospital bills when you’re scarce on funds or don’t have extra money to be sued for hospital expenses.

2. Home renovations

Your home may or may not need considerable improvements but either way, you need the funds to finance its renovation. Getting a payday loan is a good way to get your home fixed immediately.

Maybe you need to get the bathroom fixed or have the kitchen installed with more cabinets. Or, you may want the garage to have more space for vehicles or add an extra room to accommodate more guests. Whatever improvements your home needs, you need the money to cover all these expenses.

Whether you lack the funds or your budget isn’t enough to green light a much-needed renovation for your home, a personal loan can help you cover the cost to bring your home back to its former glory. The best part is that the interest rates for personal loans used for home improvements or renovations are quite reasonable, so you will be able to meet your repayment obligations with no difficulty.

Availing a personal loan for home improvements or renovations is also a great way to invest in your property. With a refurbished home, you can increase the value of your property should you decide to sell it in the future.

3. Payment for debt

Based on our firsthand experience, getting a personal loan is also a great way to reduce your debt. You can apply for a loan that can help pay for all your other loans.

You can do this by consolidating all your loan repayment obligations into one, using one payment from the larger loan you acquired. This way, you only need to remember one loan payment schedule instead of many.

Moreover, you can also reduce the interest rates you pay for your other loans when you only have one to take care of.

When availed of in a responsible manner, getting a loan to refinance your high-interest payables can be a smart move to help you manage your finances efficiently. Make sure, though, to get sound advice from financial experts to know if loan refinancing is right for you.

Since personal loans have shorter repayment terms, getting one may not be ideal for you if your income isn’t enough to accommodate another repayment obligation. Consulting a financial expert can help you make sound decisions when thinking if consolidating your debts or not is a good option.

Should you decide to refinance your other loans with a larger loan, know that this could potentially help you solve higher-interest repayments on your other debts.

4. In lieu of credit cards

Expenses like vacations may prompt you to use your credit card to cover the cost. Did you know that it is better to get a personal loan to fund such expenses?

Whilst there isn’t much difference as far as paying for interest rates is concerned, it is wiser to use a personal loan for expenses like weddings or vacations, so you can pay back the loan on a much shorter repayment term.

Credit cards, on the other hands, don’t offer fixed payment terms. It takes much longer to pay for credit card dues, especially if you were only paying a minimum amount. Moreover, you will be tempted to use the credit card over and over again, which could lengthen the time it takes to settle your dues.

A short-term personal loan is then an ideal solution should you need quick cash for things like a new laptop or to have your car fixed. You may even use it to finance a small business, which means you will be able to pay off your loan in no time should your business venture takes off.

5. Credit rating repair

Our findings show that, probably the best way that a personal loan can help you is when you use it to repair or improve your credit rating. When you get approved for a short-term personal loan despite your poor credit history, you get a new lease on your credit-driven life.

Reputable lending institutions like Perfect Payday offer individuals with bad credit an opportunity to repair their credit rating by allowing them to avail of short-term personal loans. As long as you meet the eligibility requirements and can show proof that you can meet your repayment obligations on time, there won’t be a problem getting that approval.

This is because Perfect Payday doesn’t assess your qualification based solely on your past credit history. It puts more merit on your current financial status and your capability to pay off your loan.

When you get approved for a personal loan on bad credit, this can serve as proof which you can use to vouch for your credibility when you avail of loans in other lending institutions. When they see that you are responsible in paying your loan dues in one lending company, they may decide to take a risk on you as well.

Since it only takes a few months for short-term personal loans to mature, you will immediately see how your loan repayments have improved your credit score. Just getting an approval for a personal loan can actually improve your credit score quickly.

When lenders see how you easily managed your repayments for a short-term loan, they may also trust you to get a much bigger loan. For example, you may get approved for a home mortgage when you can prove to lenders that you have a history of paying off loans responsibly and in a timely manner.

So, consider taking out a short-term personal loan should you find yourself dealing with any of these situations. However, make sure you’ve done in-depth research on the kind of loan that appropriately suits your income and your current financial status.

Most important of all, only deal with reputable lending institutions like Perfect Payday to give you expert financial advice on short-term personal loans. Getting help from an accredited financial institution is the best way you can maximize your loan for the things you need financial assistance on.

About the Author

Lucy has over a decade of experience in finance. She is currently the content curator here at Perfect Payday.

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