Cash Flow

5 Good Reasons to Take Out a Personal Loan

There are times when we need money to help us through a difficult situation or to pay for a residential refurbishment. However, debt isn’t the root of all evil, it can provide us with funds when we desperately need them. As long as you deal with a reputable money lender and make payments on time, you should have no problems borrowing cash. Unexpected expenses can occur at any time; it could be a car breakdown or a pressing medical issue, or a big vet bill for the family dog – there are many reasons why you might need some extra cash, and here are 5 good reasons to take out a personal loan. 

  1. Higher Borrowing Than Credit Cards

All credit cards have a limit, it depends on the company or bank you are dealing with. The limits are set depending on the person who applies for the card. If you’ve a weaker rating, you will only be able to use so much until your credit line is limited. When you need a larger sum of money which is bigger than what your credit card issuer is willing to allow, you’re better off going for a personal loan. If you don’t know much about personal loans, you can visit for more details. Personal loans tend to be more generous with their credit lines, giving you a chance to borrow more money, plus they offer flexible terms, meaning you can choose a repayment method that suits your lifestyle. You could, for example, repay the loan over a period of 3 years, which would make the payments manageable on a $5,000 loan or even more. Traditional lending institutions require a lot of paperwork and can take days to give you a decision, but fortunately, we now have the online lender, who really isn’t that interested in your financial status, as long as you have stable income, and they even lend to those with a bad credit rating.

  1. No Collateral Required

When getting an unsecured personal loan, you don’t need to have any collateral. This means the money lender takes all the risk when they approve your application. If you have trouble making payments and you cannot honour the contract, they don’t have the power to seize your assets. With a secured loan, the bank can take your house or car to pay for the loan. Although the consequences are severe, you still won’t lose your home or vehicle. Online lenders are far less rigid regarding loan approval and very often, an application is approved and the funds transferred on the same day, and you can’t get any quicker than that.

  1. Stable Payment Plan

Personal loans are instalment loans that are paid with a fixed amount, they don’t change over the course of the payments. They are done on a monthly basis and nothing varies during this time. Once you’re approved, you’ll know exactly how much you need to pay and your total interest. You’ll also know when the payment scheme is due to finish. You can even take out insurance that covers the repayments in the event you fall ill or are made redundant, which gives you peace of mind, and it might be possible to defer payment for a few months, in the event unexpected costs arise.

  1. Home Improvements

Many people apply for personal loans to renovate their property. The biggest investment you’ll ever make is on a home, so why not make improvements where possible. Many of us would like to add an extension or convert a loft but don’t have the funds. A personal loan gives you the opportunity to revamp your house, and that is adding value to your investment, which will pay big dividends in the future. If might be to replace timber windows and doors with made to measure UPVC units that are double glazed, giving you great thermal and sound insulation, or you feel it is time to install that swimming pool you’ve always wanted. Taking out a personal loan means you don’t have to wait, and let’s face it, sometimes there is never a ‘right time’, and you certainly won’t regret spending money on your home.

  1. Emergencies

Personal loans are good in the event of an emergency. You can get quick cash from an unsecured loan when you apply to money lenders online. Once approved, you’ll receive your cash in a matter of hours. You can also check out other secured personal loans if you have some time, they may offer lower rates. It might be a sudden vet bill after the family pet was involved in a road accident, or a dental bill that you didn’t expect, there are always surprises in life and it is nice to know that there are online lenders who are there for you when it matters. It can be embarrassing having to ask family or friends to tide you over during a financial crisis, but the online lender is only a Google search away and they are very quick, with approval in a matter of minutes.

There are various institutes to use if you need a personal loan, you can go down the traditional money lending route or contact alternative lenders. When you need to reach a goal or an opportunity presents itself, a personal loan can help. This article highlights just some of the main reasons why people apply for a personal loan, and if, for any reason, you are in need of some extra cash, search online for a lender and you will receive approval within minutes and often, the funds are transferred into your account on the same day the application was made.

You might not be in need of such a service now, but store their web address in your smartphone memory and when the day comes that you need an injection of cash, it can be arranged in a very short time.