Some people think that getting a personal loan is only for life-threatening emergencies. The truth is, personal loans are very helpful in many other ways than just for emergency situations. In fact, it is a great financial tool to help you reinstate good financial stability or even take it to the next level.
Here are other ways you can use a personal loan:
Finance your home remodeling and repairs
Need to remodel your home? Add a new room, expand your kitchen, or redesign a room for the new baby on the way. Perhaps you need to repair your plumbing or leaking ceiling. If you do not have enough savings but your home is not giving you maximum comfort, then it is time to take out a loan.
Whatever project you want to do in your home, it will eventually add value into it too. A personal loan is a great way to afford your home project without eating up your home equity. Using your credit card for this kind of needs is risky and can rack up higher interest.
Improve your credit
Taking up a personal loan can help you build your credibility and creditworthiness. When lenders determine your credit score they consider a combination of revolving credit lines (credit cards) and installment loans.
Don’t just depend on your credit card to build up your credit score. Taking out a loan and always paying its installment on time will raise your credit score too.
Start a business on the side
Having a single job is no longer enough if you have big dreams or a family to feed. You will definitely need a side hassle to live comfortably. A huge number of the working class are now entering the world of entrepreneurship.
Unfortunately, banks do not lend cash to micro business owners who are just starting up. If you need cash to kick off your business, you can get a loan from cash mart licensed lender Singapore. Ensure that you read a moneylender review to know which licensed lender can best meet your micro-business needs.
Pay for your wedding ceremony
A lot of women dream of a grand wedding ceremony. Who wouldn’t want their love story to have a memorable wedding? However, the lofty aspirations come with a price. Add to that many close family ties burdens the couple to invite everyone.
Personal loans can solve this problem. Some couples take out a personal loan which they can repay in installments. This can cover the wedding ceremony and even the honeymoon.
As long as you have a stable source of income and a solid repayment plan, the personal loan is your best option.
Settle your credit card debt
Personal loans are unsecured. This is why many think that it has a higher interest rate compared to traditional bank loans. On the other hand, it has more flexible payment terms that can solve your growing credit card debt.
Paying up your multiple credit card debts can be solved with a single personal loan. The rate of the personal loan is lower compared to the combined of the credit cards.
Cover your moving expenses
Home relocation will definitely cost a lot especially if you will need a truck to move your things. You can get a loan to pay for the moving of your belongings and buy new furniture. The loan can also help you pay for some minor house repairs if your new home needs it.
Finance funeral expenses
Nobody wants to talk about funerals, but sometimes we are confronted with the truth that a loved one can depart anytime. A funeral can be very expensive, from the casket cost to the patch of land where the deceased will be buried. If no insurance will cover the funeral expenses, a personal loan can help you out.
Take a worthwhile vacation
About to have a work burnout? According to the Framingham Heart Study, women who do not have frequent vacations are more likely to have heart attacks compared to those who take their regular vacations.
You need to take some time and unwind from the stress of uneven work-like balance. Furthermore, researchers tracked 12,000 men for nine years and compared their risk for coronary heart disease. They found out that those who took annual vacations actually had lower overall mortality rates and fewer heart attacks.
This means you need a vacation for at least a year. Take a recreational trip. Get a loan and escape to your dream vacation every once in a while.
Buy a car
You can use a personal loan to pay for the car’s downpayment. This is called a personal bridging loan. If you want to buy a car to be used for your side hustle, then getting a loan is a smart move to have a better financial status.
Purchase electronic gadget
Let’s say you want to be a freelancer. You will need to have the right gadget to be always available to your clients. If you are a freelance writer, web developer, photographer or artist, you will need the best tools to deliver your promised outcome. Get a loan to buy a laptop, a personal computer, or a high-quality camera.