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In the current time, it’s easy to get a personal loan compared to some days in the past. In the previous years, you could only have gotten a personal loan from traditional banks or SACCOs. However, in this digital era, you can quickly get a personal loan online from the comfort of your house.
But wait,
What is a personal loan?
When I talk of a personal loan, I mean a loan you take to do anything of your choice. In most instances, personal loans are unsecured loans. Therefore, you do not need to provide collateral in exchange for a loan.
Examples of personal loans
- Payday loans
These are loans that you get and repay during your next paycheck. The guaranteed approval loans for bad credit applications centrelink are short-termed with very high-interest rates. However, you will get a payday loan if you have a permanent job.
- Installment loans
An installment loan is a kind of loan that you take and repay in small bits. An installment loan can be secured or an unsecured loan. A secured loan is the one you provide collateral in exchange for a loan. In contrast, an unsecured loan is a loan that you don’t offer any collateral in exchange for the loan.
- Personal lines of credit
A line of credit is a kind of borrowing that operates similarly to a credit card. You will have a specified limit, but you will be getting in bits, and the lender only charges you interest for the borrowed amount. However, you can always borrow till you deplete your limit.
So, how can you use your loan?
Eight ways to use a personal loan
1. For debt consolidation
If you have a debt with very high interest rates, you can utilize a personal loan to pay it off. However, if you need a personal loan with better rates, you will need a good or excellent credit score.
2. Renovate your house
It will be a bad idea to take a mortgage to renovate your house. Instead, you can always take a personal loan to remodel your home. In addition, personal loans are short-term, so it won’t take long to pay off the debt in full.
3. Repair your car
A personal loan is fit for repairing your car if it breaks down before the month ends. In addition, personal loans are easy to get, so you won’t use public transport or walk to work for long.
4. Medical emergencies
Getting ill is inevitable, and no one knows when they are going to get sick. However, if you have no savings, It can be hard to deal with an emergency illness in these harsh economic times. So, applying for a personal loan will help you to sort that out.
5. Pay school fees
We say knowledge is power-but it’s also costly. And in some instances, education is rare to some people who struggle to get a meal a day. Therefore, if you can repay a personal loan, you can take it to finance your education or your kid’s education.
6. Refinance a title loan
A title loan is the one that you provide collateral to the lender in exchange for a loan. If you don’t pay the loan, the lender has a right to take your property. So, you can take a personal loan to salvage your property from repossession.
7. Vacations or weddings
You can spend a personal loan on vacations and weddings. This fact shows that personal loans are flexible to use. In addition, no one will monitor how you pay the loan.
8. Grocery shopping
If you are going short of groceries in your house and it’s not yet payday, you can always take a personal loan to help you out. You don’t have to starve when you can quickly get a loan.
To wrap it up
You can preferably do anything you want with a personal loan. No lender will stalk you to know how you will use the personal loan. All they need is that you can repay.
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