Getting a personal loan is easier than ever today. There are a wide array of lenders just waiting to loan you money as a personal loan in the hopes of making back the loan amount, plus interest, on the deal. If you have a good credit score, you can get a personal loan from almost anywhere. There are many different reasons that could lead to a person choosing to obtain a personal loan.
Here are some of the best reasons to get a personal loan:
Paying Off High Interest Debt
One of the best reasons to get a personal loan is to pay off high interest debt with a loan that has a lower interest rate. For example, many credit cards have interest rates of more than 22 percent, making it very difficult for someone to pay off a high balance even if they pay more than the minimum payment. In contrast, personal loans by EasyPlan can have interest rates that are roughly a quarter of that amount. This would allow the borrower to pay off the debt amount much more quickly because the interest amount would not be raising the balance of the debt as quickly. If you are holding high interest debt of more than $5,000, paying it off with a personal loan could save you hundreds of dollars over the life of the loan.
Opening A Small Business
Another good reason to get a personal loan is to start a small business. If beginning your business will not be costly, a personal loan may work better for you than attempting to secure a business loan. Applying for a business loan typically requires significantly more paperwork than applying for a personal loan, especially if you have a prior relationship with the lender extending the loan. Because there are no restrictions on what a personal loan can be used for, it can easily be used to purchase the materials needed to start a small business.
Buying A Vehicle
Some people choose to obtain a personal loan to purchase a vehicle. Used vehicles can cost less than $10,000 and if you are not purchasing the vehicle from a dealership, it can be time consuming to get an auto loan for the purchase. If you have good credit, you can get a personal loan with a lower interest rate than you would have gotten at a car dealership for the same amount. Using a personal loan allows you to buy the vehicle and potentially have money left over to modify or repair the vehicle to better suit your needs.
Save More Money in 2018
Subscribe and join the worldwide 52-week money challenge! Get the tools you need right to your inbox.