When to Take Out a Personal Loan | Peoples Bank

Personal loans can cover a wide variety of financial needs, whether you’re looking to fund a family vacation, begin a home remodeling project, or cover a medical emergency.

When should you take out a personal loan? The reasons vary from person to person, situation to situation, but here is an overview of personal loans and when one might be right for you.

What is a Personal Loan?

Personal loans are different from other loans in that they can be unsecured. That’s because they’re not protected by collateral which your lender can take if you can’t pay back the loan. They’re also considered a type of installment loan with a fixed repayment term (usually two to five years) and interest rate. You receive the money in a lump sum and pay it back in monthly installments.

One advantage of a personal loan is that you usually can get the money in a very short period. The process of applying for a personal loan can be completed quickly, and a credit decision is usually provided the same day.

When to Get a Personal Loan

There are many different reasons and times in your life when a personal loan makes sense for you. Here are some options to consider as you’re deciding when to get a personal loan.

Home remodeling

Whether you want to put on a new roof, remodel your kitchen or bathroom, or start a big landscaping project, personal loans can be a great option to pay for home remodeling projects. This is a great fit for people who don’t yet have equity in their home or don’t want to get a home equity line of credit.

Medical expenses

When thinking about when to get a personal loan, you may want to consider using one to cover the costs of medical expenses such as dental services, orthodontics, bariatrics, and even cosmetic surgery. Expenses such as medical travel, medications, and aftercare can also be financed through a personal loan, but will likely require collateral and excellent credit.

Vehicles

A personal loan is an option when you’re looking to buy a boat, car, or recreational vehicle. Other examples in this category include motorcycles, snowmobiles, and equestrian equipment.

Vacation

Travel can be costly, and maxing out your credit card for a dream vacation isn’t a desirable option for many people. But plenty of people take out a personal loan to fund a vacation, including to cover airfare, ground transportation, meals, guides, tickets to major attractions and activities, and more.

Pay for a wedding

While weddings create memories to last a lifetime, they can also be very expensive. But a wedding – and any large event – can be funded through a personal loan.

Our team is ready to work side-by-side with you to find the best loan for you. Contact us today to get the personal loan that fits your need!