5 Smart Uses for a Personal Loan
Did you know that personal loans are one of the most flexible, affordable options for borrowing funds? In addition to offering lower interest rates than credit cards and fixed monthly payments, they can also cover nearly every expense.
This post will look at five scenarios where a Connexus Personal Loan makes great financial sense.
Consolidating High-Interest Credit Card Debt
One of the most common uses for a personal loan is debt consolidation. If you carry a revolving balance on your credit cards, you could use a personal loan to consolidate these balances.
Essentially, the personal loan replaces the credit card debt but at a much lower interest rate and with a fixed monthly payment. This means you can pay down your debt faster while saving on interest.
Using a personal loan to consolidate high-interest credit card debt is one of the smartest ways to put this financial tool to use.
Home Renovations and Repairs
Home Equity Loans and Lines of Credit are generally the best options for funding home renovations and repairs. However, they rely on the borrower having equity in their home.
What about homeowners facing a project that needs to be completed now, but they don’t have enough equity against which to borrow?
A personal loan can help! It can be used to cover the costs of home-related projects, should you need to borrow before having enough equity built up in your home.
Covering the Cost of Unexpected Expenses
Most people reach for a credit card when facing an unexpected expense, like a large vehicle repair bill, medical expense, or home repair cost.
However, credit cards typically come with hefty interest rates that can make paying down the balance an expensive and lengthy endeavor.
On the contrary, personal loans offer lower rates, more affordable monthly payments, and a fixed Annual Percentage Rate (APR) that lasts the life of the loan.
Using a personal loan instead of a credit card means you benefit from both interest savings and the comfort of knowing your monthly payment and rate won’t change.
An Alternative to Payday Loans
If you’ve poked around our blog, you know that we advise against payday loans.
Designed to make money off the people who can least afford it, payday loans offer quick cash to applicants who frequently have poor credit. The tradeoff for the “convenience” of these loans is their extremely high interest rates, which, according to the Center for Responsible Lending, reached over 600% APR in some states in 2023.
While a personal loan will have different lending criteria, they are still an affordable borrowing option that remains within reach for many families.
If you’re thinking of taking out a payday loan, schedule a call with Connexus first. We may have loan options that can help you get the money you need without visiting a payday lender.
Covering the Cost of That Once-In-A-Lifetime Event
As great as it would be to pay cash for every major milestone in life, we know it’s not always feasible. Whether it’s tuition expenses, a dream wedding, a new baby on the way, or an epic vacation, sometimes the funds need to be borrowed.
If you plan to borrow for upcoming expenses, consider a Connexus Personal Loan. You can get the cash you need at a low rate. Plus, our flexible term options mean you can borrow the amount you need on a repayment schedule that won’t break your budget.
Speaking of budgets, you can use our Loan Payment Calculator to determine the cost of your monthly payment.
Get Started With a Personal Loan Today
Ready to borrow the funds you need? Schedule a call with one of our expert lenders to learn more about Personal Loans or start the application now.