Not all debt is bad. Think credit cards, where consumers use them for everyday purchases, or getting a mortgage to purchase your first home.
A popular alternative to personal loans are credit cards, but you may not be able to borrow a large sum.
Interest rates for personal loans are usually lower compared to what you’d find for credit cards.
Borrowers who take out unsecured personal loans don’t need to put up collateral to borrow money.
Multiple loans tend to come with different payment due dates, lender policies, and interest rates. It’s far easier to take out a lump sum and make one payment using one lender.
That means you’ll know for how long you’ll need to make payments.
Personal loans offer a wide range of repayment terms, from a few months to a few years.
Making on-time payments consistently helps to build a strong credit history and boosts your credit score.
There are plenty of online personal loan lenders that use an application process that’s completely online.
This is beneficial because you know exactly how much you’ll be changed in interest for the lifetime of your loan — no surprises there.
The main one is that you can use a personal loan for most purposes. Some common uses include major purchases and debt consolidation.