Personal loans, which don’t require collateral, can be used for just about anything.

When you need cash, one of the most versatile financial tools available is a personal loan. Usually these loans are unsecured, which means you don’t need collateral. A lender will simply look at your creditworthiness and income to see if you qualify. Generally, the better your credit score, the lower the interest rate.

A personal loan is also one of the simplest loans to use. You borrow an amount, typically between $1,000 and $50,000, and agree to repay it over a set time with interest. Best of all, you can use a personal loan for just about anything. Here are six ways you can use a personal loan.

1. Consolidate debt: If you have debt on multiple credit cards, you can consolidate what you owe using a personal loan. Then you’ll have just one monthly payment to make on fixed terms. (Note: To discover skills to avoid debt problems in the future, listen to our Intelligent Borrowing podcast.)
   
2. Medical bills: The average hospital stay is over $15,000 according to Bankrate. With deductibles of half that or more, many people use personal loans to cover out-of-pocket medical expenses.

3. Home improvements: Homes age, suffer wear and tear, and sometimes just need to be updated. A personal loan is an excellent tool for doing the improvements that make home sweeter for you. (Note: If the coronavirus pandemic makes you uncertain if you should make home renovations, check out these three questions to help you decide.)

4. Autos and recreational vehicles: Personal loans can be used for anything that moves: cars, RVs, boats, motorcycles, jet skis and even tiny homes. Getting cash for these things now can allow you to enjoy them right away rather than missing out on seasonal fun while you save up enough to cover the cost.

5. Large purchases: Some purchases only come along once in a while, or once in a lifetime. Appliances, home furnishings, wedding rings, honeymoons and vacations are all possible ways to use a personal loan.

6. Start a business: The COVID-19 outbreak has drastically changed the employment landscape. This just might be the time to start that business you’ve always dreamt of by using a personal loan.

Talk to us

If you need a personal loan for any of the reasons above, or even one that’s not, check out our personal loans with competitive rates.

Consumers provides banking services for more than 100,000 members. If you have banking questions, call us at 800-991-2221. We make it easy to bank how you want, when you want. During the coronavirus confinement, we’re available online, by phone and by appointment at select offices equipped to maximize safety.

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