Getting a personal loan is a popular tool for borrowers looking for an unsecured cash out option.

Our network of loan companies is committed to finding you the lowest rates for home equity lines, installment loans, mortgage refinancing and house buying loans.

The unsecured personal loan is easy process, and it doesn’t necessitate collateral and boasts a speedy process, with funds typically available by the following business day.

Top 10 Reasons to Get a Personal Loan in 2024

With 30-year mortgage rates topping 8% recently, it’s understandable if homeowners don’t refinance to get the money they need for major expenses. One option for homeowners with good credit is a personal loan. Learn more about personal loans below, then talk to your loan advisor about the next steps.

What Is a Personal Loan?

Personal loans are usually unsecured, which means you do not have to provide collateral if you don’t pay. There is nothing for the creditor to take if you don’t pay the loan, but your credit score will suffer.

An unsecured loan uses your credit score and history to determine if you can qualify and what your rate is. You can use a lump-sum personal loan for just about anything, such as a new car, home renovations, paying down high-interest debt, and more. You make monthly payments on the personal loan until it’s paid off. This differs from a credit card, which has a line of credit that can be paid off and reused.

Best Reasons to Get a Personal Loan In 2024

Personal loans have a lot of things going for them, including the following in 2024 and beyond:

Interest Rates Will Remain Elevated

No one can predict what mortgage rates will do in the future, but these days, they are around 8%. There are signs that the Federal Reserve may continue with rate hikes in the near future to tame inflation. So, we can likely expect mortgage rates to stay above 7% for some time – at least for the next several months or a year.

With mortgage rates this high, it’s unlikely for homeowners to do cash-out refinances to get the money they need. Most current homeowners have mortgage rates well below the current market and will stand pat until rates come down. So, a personal loan can be an effective way to get a good interest rate but keep your first mortgage in place.

Consolidate Debt

Americans owe at least $1 trillion in credit card debt. Some of that amount is purchases, but it also includes fees and interest. This all adds up and can make it tough for people to pay down what they owe. Plus, interest rates for some borrowers are well above 20%, making it even more difficult to pay off those cards.
A personal loan is a popular option to consolidate debt when refinancing the mortgage is out of the question. With credit card rates so high, good-credit borrowers can often score a low personal loan rate under 10%. Those with the best credit may get a rate of 5% or less, which is great for a personal loan.

Pay For A Funeral

Most people might not think of this, but using a personal loan for a funeral can be less expensive than funeral loan with a higher rate.

Make Home Improvements

If you own a home, you could take out a home equity line or credit or home equity loan. But what if you don’t want to take on a second mortgage and risk your home? A personal loan is unsecured and someone with good credit can still get a good interest rate. Personal loans aren’t as risky as second mortgages and can be obtained in large amounts, based on your credit score.
For example, if you want to do a $25,000 kitchen upgrade, it’s possible to get a large personal loan, potentially at a low interest rate.

Moving

If you need to move out of state, you could have to pay tens of thousands of dollars in expenses to a moving company. Moving hundreds or thousands of miles means paying to pack up everything, hiring movers, and taking everything to your new city.
A personal loan can help you cover moving expenses and rent a home or apartment while looking for a permanent place to live.

Wedding Costs

It isn’t recommended to borrow money to pay for events, such as weddings. Instead, you should save money over months or years to pay in cash. However, in certain situations, it can be smart to use a personal loan to pay for a wedding. Credit cards usually have higher rates, so a personal loan could be more economical to pay for a wedding or other event.

College Expenses

Student loans often have lower rates, but a personal loan could be a good move if you cannot qualify for a student loan for some reason. Also, student loans cannot generally be discharged in bankruptcy, but personal loans can.

Medical Expenses

Most Americans know how expensive medical care can be. Some people who need money to pay for major medical expenses may use a personal loan. For example, someone who had a stroke or heart attack could have tens of thousands or more in medical bills. Some of the expense may be covered by insurance, but not everything. A personal loan could be a good choice so you or a loved one can get the care you need.

Finance A Car

You can get an auto loan if you need to buy or lease a car. But a personal loan is a good choice for certain borrowers. Auto loans may have lower rates than personal loans because the car is used as collateral. But if you don’t want to risk your car being repossessed, you could get a personal loan for the new ride. Plus, you could have money left over with the personal loan you can use for other things.

Start a Business

Do you dream of starting your own company? That’s wonderful but it takes money. Sometimes a personal loan can be used as seed money for an office lease, purchasing equipment, paying salaries until your business is profitable.
Unanticipated Expenses

Whether it’s your HVAC system, roof, or something else, life happens to everyone. Many American adults lack a financial safety net if a major expense comes along, and a personal loan can provide that much-needed financial cushion. A personal loan is usually less expensive than a credit card, too.
Summary

These are some of the best reasons that you should consider taking out a personal loan. Talk to your loan advisor today to find out if a personal loan is the right fit for you.