Why should you wait to satisfy your wishes or to cover needs? Modern life can be really unpredictable. We all may experience spontaneous desires or temporary monetary issues once in a while when we consider various lending options and think “Probably, I need a loan now“.
“Money is a guarantee that we may have what we want in the future. Though we need nothing at the moment it insures the possibility of satisfying a new desire when it arises.” – Aristotle
The lending industry is rapidly growing over the last few years due to its accessibility. More and more people are choosing small loans to cover different types of expenses.
The total personal debt for American citizens is currently $143 billion, according to the Chamber of Commerce. So, here are the main reasons why consumers need loans.
Why People Choose Personal Loans?
- “I need a loan now please help!”
Many people face temporary financial difficulties because of the world economic crisis. Some of them can’t afford expensive purchases or live paycheck to paycheck while urgent unexpected bills can easily unsettle them and knock them off the wagon. So, consumers decide that they need an emergency loan to help them stay financially secure.
All the people who need loans now may turn to their local banks, credit unions, or peer-to-peer lenders. Every lending institution has its own advantages and drawbacks. Depending on your current financial needs and credit history, you may need to opt for a certain finance-related service provider.
For instance, a traditional bank prefers to deal with consumers who have a good credit history.
- “What if I need a loan but I have bad credit?”
You should save your time and apply to online lenders instead. Personal Money Service can facilitate this process for you and help to obtain the necessary funds even when you need a loan with bad credit.
Here are the top 8 reasons to take out a personal loan:
1. Consolidate the Debt
Some people have several high-interest debts which turn out to be even more difficult to pay off.
- “What can I do if I need a loan but keep getting declined?”
One of the best reasons is to use a small personal loan as a way to consolidate debts and turning them into one single loan. This is a smart technique that can allow making only one payment on a monthly basis instead of multiple payments that can easily be forgotten or missed.
Do you need a loan been refused everywhere? It is possible to qualify for a lower interest rate that will also save your cash.
2. Combine Credit Card Balances
The same way consumers may consolidate their credit cards. You may need a loan asap so that the extra money is deposited to your bank account and you can use it to pay down the balances on all of your credit cards. After that, you will have to repay just one loan instead of multiple cards each month.
“If you need a loan urgently but have poor credit, you should pay down balances on your credit cards. This is the best action consumers can take to eliminate the risk of being rejected again.” – Jennifer White, a consumer education specialist at Experian
Consolidating your credit cards is a great option. It can help you reduce the interest rate and boost the credit score.
3. Purchase a Car
One of the best reasons for a personal loan is making an expensive purchase that you can’t afford if you live paycheck to paycheck.
- “I need a loan today because I want to purchase a car.”
It’s quite possible. You can finally allow yourself to buy an auto, a motorcycle, or a boat if you want. This lending solution works best for the situations when you can’t qualify for a secured loan with a lower interest rate.
4. Pay Wedding Expenses
More and more couples desperately need a loan fast to finance the dream wedding. There is no doubt that every person wants to turn this special occasion into the best day of their life. Thus, the expenses may be much higher than you’ve planned.
If you can’t afford to pay for the venue of your dream or a brand new fashionable bride’s dress, one of the good reasons for personal loans is to take it for funding this special day. The money can also be spent on the photographer, the wedding coordinator, or the beautiful venue.
Some people also need a small loan to purchase the engagement ring. As you can see, this quick cash can cover any expenses connected with the wedding.
5. Pay for a Vacation
Have you been dreaming about a perfect honeymoon getaway? Are you willing to go on a long-awaited cruise on your vacation? Do you need a $5,000 loan with bad credit?
Don’t postpone making your dreams come true. While traditional banks may refuse your application, many online lenders will agree to cooperate with borrowers who need a loan desperately because they would like to go on a vacation.
You may use the money to buy flight tickets, book a hotel, finance your food or entertainment, etc.
6. Unforeseen Urgent Expenses
Nobody likes to talk about such problems, but this is life and it’s certainly unpredictable.
You can’t always be ready for various unpredictable expenses and have enough money in savings. There are some situations in life when you may need a 100 dollar loan now and you can’t wait.
For instance, short term loans are a great way to fund funeral costs as this ceremony is usually very pricey. Funeral expenses cost a lot, so if a deceased person hasn’t saved enough, his or her family members may opt for this lending solution to finance the ceremony.
Another significant reason for a loan is to cover urgent medical bills. You may need a loan today because you can’t wait until the next payday. Various treatments including cosmetic surgeries, dental procedures, or fertility treatments can be really expensive.
Do you need a 500 dollar loan to pay off the bills? All the costs connected with medical services and aftercare may be easily covered.
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7. Home Repair
Whether you need to repair a roof, remodel the pool, fix the leaking pipes, or remodel the whole house, borrowing options can save your time and give you the necessary funds. If you need a quick loan for any type of home remodeling, you can apply for this lending solution from any finance-related service provider.
- Do you need a loan with no credit check? Pay attention to the terms and conditions as every creditor will still perform at least a soft credit check to avoid risks.
There are multiple lenders who will be glad to give you a hand and provide the necessary funds for your home improvements even if you need loans fast.
8. Moving Costs
While you may need money now, loans for moving are also extremely popular among people these days. When you are willing to relocate to another city or even state, then you may need loans today to support you moving and help it go more smoothly. You may use the money to cover expenses connected with furniture, moving your personal belongings, transportation, rent, etc.
If you are moving and need a loan with poor credit, make sure your new income will be enough to repay the debt.
These are the main reasons for loans. Choose the best reason for a personal loan that will suit your current financial situation and your needs. Always keep in mind the lenders’ conditions and read the fine print to understand all the extra fees.