While all or most of us may have savings, there are certain unexpected expenses which we may not want to dip into our savings to cover. This could be anything from needing a new computer because this one has finally given up on you or your furniture desperately needs to be replaced as it has seen too many wrestling matches between the kids and the dog.
There are many reasons to take out a personal loan and each individual’s credit history and financial health will influence the interest rates of a personal loan offered; however, it’s very possible that these rates could help you handle the scenarios outlined here along with many more.
To start with the basics, a personal loan is a type of loan that involves borrowing a set amount of money and paying the creditor off with interest in a structured payoff schedule. These loans are “unsecured” because you don’t have to put up any collateral (such as your house, car, etc.) to get the loan; instead, lenders use your personal credit and other factors to determine eligibility. One of the benefits is that you have more flexibility with what you can use the money for.