Should I Get a Personal Loan?
When you need extra cash, personal loans can be a good way to tap into new funds and give yourself more financial flexibility. But with so many types of financing out there, you may be wondering what is the benefit of a personal loan, in particular? Well, there are actually plenty of advantages to a personal loan that can make it the right financing vehicle for your needs.
What is the benefit of a personal loan?
When weighing personal loan pros and cons, you may find that the advantages far outweigh any potential drawbacks. Take a look at five of the most compelling perks to taking out a personal loan and decide for yourself:
- Low interest rates
- Tap into extra funds for the unexpected
- Get your money quickly
- Simple repayment plan
- No collateral needed
1. Low interest rates
Personal loans often offer comparatively lower interest rates than many other types of financing. In particular, your interest rate on a personal loan could be significantly lower than a credit card. With that lower interest rate, personal loans can be useful ways to tackle debt consolidation. If you’re struggling to keep up with a large credit card bill, for instance, then a personal loan could help you wipe the slate clean. You’d still need to repay your loan amount, of course, but you might owe considerably less interest compared with a credit card.
2. Tap into extra funds for the unexpected
When life throws a major unplanned expense your way, your options may be limited. Needing to replace a leaky roof, for instance, may run tens of thousands of dollars — and that could put a huge dent into your savings. Even if you have those funds to spare, you may not want to withdraw so much money from your bank account all at once to pay for necessary home repairs. That’s where a personal loan comes into play. Guaranteed Rate personal loans range from $4,000- 50,000 dollars and have repayment term options from 1-5 years. After all, it’s a lot easier to budget for a monthly loan payment than to free up the funds to pay large expenses upfront and in full.*
3. Get your money quickly
With some types of loans, you could wait weeks before you get the funds you need. Not so with a personal loan. The application process for a Guaranteed Rate personal loan could take as little as 10-to-15 minutes. And your funds will land in your bank account within 1-to-2 business days, rather than a few weeks.
4. Simple repayment plan
With fixed interest rates and relatively short amortization schedules, personal loans offer a pretty simple repayment plan. Every month, you’ll pay a set amount to chip away at your balance until your debt is gone.
Compare that simple setup with a credit card, which is a rolling balance that continually accrues interest with no precise end date. That’s why so many people struggle to get out of credit card debt: the interest just keeps piling up. With a personal loan from Guaranteed Rate, you’ll owe a fixed amount of interest that never changes and is broken down across each payment.
5. No collateral needed
A personal loan is what’s known as an unsecured loan. The advantage of an unsecured loan is that there’s no collateral for you to put forward. That’s just one less thing to worry about when financing a large purchase.
What can I use a personal loan for?
Once you have your funds, you can use that money just about any way you like:
- Consolidate high-interest debt
- Get cash for big, unexpected expenses like home repairs
- Pay for home renovation projects
- Furnish your home with new furniture
- Cover the cost of a special event like a wedding
- Fund your next vacation
- Pay for large-ticket items like home appliances
Get the funds you need with a personal loan today
There are plenty of compelling reasons to take out a personal loan when you need some extra cash. Applying for one is easy, your money is quickly deposited and, thanks to short amortization schedules and low fixed interest rates, repayment is a breeze.
You can use a personal loan to do everything from consolidate high-interest debt to cover emergency expenses. When you’re ready to tap into a new source of funds, don’t hesitate to apply for a personal loan from Guaranteed Rate. You could have that money in your bank account before you know it.
* You must be 18 years of age or older. To qualify, a borrower must be a US citizen, a permanent resident, or a non-permanent resident in the US on a valid, long-term visa. All loan applications are subject to credit review and approval as well as income and employment verification. You must meet our minimum requirements established for this offer including, but not limited to, credit history, debt-to-income ratio, and application information. Your actual rate depends on your requested loan amount, loan term, creditworthiness, and a variety of other factors. Loan amounts range from $4,000 - $50,000. Rates and loan amount may differ due to state specific requirements and may impact your ability to qualify for a loan. Limitations: CA (rate and amount), FL, ME, NC, TX and VT (rate), IL, MA, RI (amount). The lowest rate advertised is reserved for the most creditworthy borrowers. Advertised rates and terms are current as of 8/10/2022 and are subject to change without notice.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate, Inc. does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate. Guaranteed Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.