The affinity that some consumers have for personal loans or installment loans isn’t a surprise. When you compare them with alternatives such as payday loans and credit cards, personal loans that are unsecured have a few key advantages. Even though they’re not as common, personal loans that are secured actually hold true value for borrowers who are qualified also.
Here’s a quick look at a few reasons why you need a small loan.
If you’re not able to pay for your next vacation in one lump sum, you might consider taking out one of the best Texas loans before reserving your airfare and hotel and then using the remaining funds to cover any expenses that’ll be incurred on the trip itself, like souvenirs, meals, admission to attractions, and tours. That said, you shouldn’t ever take out an installment loan to pay for vacations you know you just can’t afford, but they can assist you when it comes to spreading out the expense of one over several monthly payments that are more manageable.
It doesn’t matter if you’re making improvements to the inside of your home or if you’re looking to improve the outside, if you lack sufficient home equity – a minimum of 15%, or a loan to value ratio of 85% – to be qualified for a secured home equity line of credit or loan, getting an unsecured personal loan might just be your next best option for financing your project. You’ll be able to use the proceeds of the loan for funding any purchases related to the project as long as you make sure to pay off the loan according to the repayment terms.
Even though financing a wedding is typically something you’ll only do once, it’s quite a different animal than the planned home improvement projects. This is due to the fact that most weddings tend to require months of preparation and planning. In metropolitan areas, venue and catering services might need to be reserved a minimum of a year in advance. The engagement jewelry will be an expense that needs to be dealt with sooner though.
You might want to take out an installment loan before you make the first wedding-related purchase. You can set up a separate checking account to hold the money from the loan and to disburse any monthly payments. Otherwise, use this account for making purchases related to the wedding. If you need a larger sum of money, you might want to take out a loan with a longer-term so that the payments will be more manageable and to ensure that you don’t run out of money.
Start a Business
If you need funds to start a micro business or to jump-start a career as a solopreneur, you really don’t need to apply for a commercial loan. An unsecured installment loan can do the trick just as well, in the event that the amount you’re able to get is enough to finance your startup costs.
While the above reasons are some of the most common ones for taking on a bit of new debt in the form of an installment loan, they are by far not the only reasons to do it. If you’ve applied recently for a loan online, you might’ve noticed the choice “Other” in the drop-down menu for “Loan Purpose”. Lenders tend to be just as ready to give you a loan as you are to get one, so they’re willing to consider underwriting loans that don’t fit the typical common uses, which is great news for you.