The top 9 reasons for personal loans

Personal loans are borrowed money that can be used for large purchases, debt consolidation, emergency expenses and much more. These loans are paid back in monthly installments over the course of typically two to six years, but it can take longer depending on your circumstances and how diligent you are with making payments.



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Birdseye view of desk

Here are the top six reasons to get a personal loan and when they make sense:

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  1. Debt consolidation.
  2. Alternative to a payday loan.
  3. Home remodeling.
  4. Moving costs.
  5. Emergency expenses.
  6. Appliance purchases.
  7. Vehicle financing.
  8. Wedding expenses.
  9. Vacation costs.

Get pre-qualified

Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.

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How personal loans work

Once you get approved for a personal loan, the funds you receive will be disbursed in a

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Why you should consider personal loans during the coronavirus pandemic

Personal loans could help cover unexpected expenses with lower interest rates. (iStock)

Millions of Americans face unprecedented personal finance concerns as the coronavirus pandemic continues to affect unemployment rates months after the first case of COVID-19 was reported in the United States.

The Federal Reserve took steps in March to encourage consumer spending by lowering interest rates to near 0%. Rates have stayed low, and projections suggest that the interest rate will remain near 0% until at least 2023.

If you’re considering a personal loan, now may be a good time to move forward so you can take advantage of low rates. Get started on the application process today.

If you still want to do more research before taking out a personal loan, read on.

What is a personal loan?

Personal loans allow you to borrow funds from a lender to use for any expense. Typically, personal loans

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Should I take out a personal loan to invest?

Measure the risk before you bank on a reward. (iStock)

Personal loans are a popular form of debt. The total amount Americans borrowed using this type of financing reached a high of $162 billion in the first quarter of 2020, per TransUnion.

Personal loan interest rates are near all-time lows, so you may be tempted to take out a loan for a variety of reasons — but what about investing? Depending on your credit score, some borrowers could qualify for a personal loan as much as $100,000.

Before you build wealth by investing borrowed money, here’s what you need to know.

Is using a personal loan to invest a smart move?

Consumers can take out a personal loan and invest the money — but whether that’s a good idea depends on your financial situation or goals. It can be a huge gamble, yet can also pay off if

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Can you take out a second personal loan?

There are many unexpected life events that can trigger the need to take out multiple personal loans at once. Personal loans are often used to consolidate other debts or make large purchases. But when you already have one personal loan and find yourself in a situation where you need another, what should you do? How many personal loans can you have at once?



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The short answer is that you can take out more than one personal loan simultaneously. But just because you can doesn’t mean you should, as it can seriously impact your credit score and overall financial health.

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Get pre-qualified

Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.

Get Started

Can I take out two personal loans at the same time?

The

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Can a Personal Loan Help You Cope Financially During This Covid-19 Pandemic?

A lot of people are getting into financial straits because of the COVID-19 pandemic. Due to the measures to flatten the curve of those people infected, governments around the world have mandated to stop many businesses from operating, which led to millions of people losing their jobs and experiencing a significant decline in their income. 

Many households can barely pay their utility bills because they don’t have enough money for such expenses. Plus, the additional costs of buying the required technology for the remote schooling of their children – another feature of the “new normal” – put a heavy burden on the finances of the families that are badly affected by this health crisis. 

For those who don’t have sufficient savings and are struggling to pay for important expenses, you can go to online lenders like GoodCheddar to obtain a personal loan. Here’s what you should know why this loan

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Should You Get a Personal Loan to Pay the Bills?

A stressed woman sitting at her dining table and looking through her bills and receipts with her head resting in her hand.

Image source: Getty Images

Right now, for millions of Americans, times are tough. It’s understandable if you can’t pay the bills with the country in a recession and COVID-19 still a serious threat. But you’ll need to explore solutions to help you get through.

One option is to secure a personal loan. While this approach can work, it’s not necessarily the right option for everyone. Here’s what to consider to help decide if it’s the best approach for you.

Can you qualify for a personal loan?

If you’re thinking about borrowing to cover the bills, the first big question is whether you can qualify.

Lenders typically check your credit score and sources of income when deciding whether you can borrow, how much you can borrow, and what rate you’re charged to borrow. If you’re struggling to make ends meet because of a lack of income, you may not be approved

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3 Bad Reasons to Get a Personal Loan

Don’t get a personal loan for the wrong reasons.

Personal loans are often a good way to borrow. You can use the loaned money for anything you’d like, and the loans come with a fixed repayment schedule, so you’ll know the costs of borrowing up front as well as the payoff date. The interest rate is also usually well below what you would pay on a credit card (unless you qualify for a special promotional rate).

But that doesn’t mean it’s always a good idea to get a personal loan. In fact, there are plenty of circumstances in which it doesn’t make sense to take on this type of debt. Here are three of the worst reasons to take out a personal loan.

1. Because you don’t have your spending under control

If you are trying to live well beyond your means, a personal loan can, theoretically, provide you with

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Can I get a personal loan if I have student loans?

When you have student loans, getting a personal loan can be tricky. Lenders may see you as a risk. But there are ways to improve your chances of qualifying. (iStock)

If you’re a student loan borrower, it likely that you have significant student debt — even with the forbearance options currently available.

In the 2018-2019 academic year, the average student loan at private for-profit colleges and universities was $7,614. The average student loan was $8,100 at private non-profit schools and $6,483 at public schools, according to Statista. Total student loan debt in the U.S. for the 2018-2019 school year totaled a whopping $106.2 billion. When you consider that it takes about 52 months to graduate with a bachelor’s degree, it’s easy to see how debt can really add up.

With all that student debt, you may not want to take on more — but you may have to,

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To Revive Demand Ahead of Festive Season, SBI Offers Personal Loans With Big Benefits



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New Delhi: At this time of corona crisis when the economy and demand are going through a rough phase, a number of financial institutions, including banks, are offering various kinds of benefits on loans to customers to revive demand in the market in the upcoming festive season. The State Bank of India (SBI) on Monday has floated one such initiative with massive benefits. As per updates, the SBI has announced a 100 per cent waiver in the processing fee for all customers applying for auto, gold and personal loans through its Yono application platform. In a notification, the SBI stated that there will be a complete waiver of processing fees on home loans for homebuyers in approved projects. Moreover, the bank is also ready to provide concessions in interest rates up to 10 bps for select customers however, this will be based on
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LendingClub Studies Reveal Customers Prioritize Personal Loan Payments Over Credit Cards, Helping Them Progress Towards Financial Health

SAN FRANCISCO, Sept. 22, 2020 /PRNewswire/ — LendingClub Corporation (NYSE: LC), America’s largest online lending marketplace connecting borrowers and investors, today released findings from two recent studies on member financial health and payment behavior before and during the novel coronavirus (COVID-19). Conducted in January and June 2020, the studies sought to understand member behavior before and during the coronavirus-driven recession and how they make decisions regarding prioritization of bills and expenses in relation to their long-term financial goals.


Lending Club, the world's largest online marketplace connecting borrowers and investors. (PRNewsFoto/Lending Club) (PRNewsFoto/Lending Club)

The key takeaway: Customers are prioritizing personal loan payments over their credit cards. These findings support recent assertions from TransUnion suggesting that personal loan delinquency rates were either in line with, or performed better than, credit cards across most credit tiers during the Great Recession.

The findings show that:

  • Despite their overall high levels of income ($90,000 average) and healthy credit profile (700 average), financial stress affected the day
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