What Can a Personal Loan Be Used For?
Personal loans are among the most common financing options for a good reason. They are easy to obtain, don’t require collateral, and their interest rates are usually much lower than other financing options, such as credit cards. The following are a few common uses to help you decide if a personal loan is best for your needs.
Vehicle Repairs
With the cost of new vehicles rapidly increasing, many people are keeping their used cars for as long as possible. Although today’s vehicles are much more reliable than they used to be, they will still need occasional repairs.
Although it’s much more affordable to keep an older car running than it is to buy a new one, repairs can still be expensive. A personal loan can be used to pay for unexpected repairs when they are needed. You can then repay it over time with fixed monthly payments and a fixed interest rate.
Debt Consolidation
If you have one or more sources of high-interest debt, like credit card or store card debt, a personal loan can be used to consolidate it. San Francisco Federal Credit Union (SFFedCU) offers a debt consolidation loan, for example, with terms of up to 84 months and no loan origination fees. Instead of repaying multiple debts that are hard to keep up with, you can repay one loan instead.
Another option to consider for debt consolidation is to go through a structured program offered by a non-profit debt counseling agency, like the one offered by SFFedCU’s partner, BALANCE. If you enroll in one of these programs, a credit counselor will work with you to develop a plan to repay your unsecured debts within 1-3 years.
Moving Costs
Let’s say you’ve decided to move from New York to San Francisco. That big of a move could be very expensive, and a personal loan can be used to pay for a moving truck or moving company, packing supplies, and other moving expenses. This allows you to complete your move without worrying about how to pay for it.
Pet Expenses
Pets are part of the family, so when they get sick or need surgery, you want to make sure to have the money on hand to take care of those expenses. Our Lend-A-Paw personal loan can help you pay for those emergency room visits, medications, surgeries, prescription food—everything to keep your pet healthy and happy!
This loan allows you to borrow anywhere from $500-$50,000, with repayment terms from 61 days to 84 months.
Medical Bills
Even the best health insurance doesn’t cover everything. The cost of copayments, deductibles, tests, and treatments not covered can add up. Surprise bills for out-of-network medical practitioners or facilities can also catch you off guard.
In that scenario, a personal loan could be used to pay your medical bills. This lets you avoid calls from collections agencies or end up with a reduction in your credit score if you can’t afford them.
Home Repairs
The average home needs about $1 in home repairs annually for every square foot of living space. If your roof suddenly starts leaking, a pipe bursts in your basement, or you discover that termites have destroyed your sub-flooring, a personal loan can be used to pay for those repairs.
An important benefit of using a personal loan for home repairs is that it usually only takes 1-5 business days to get approved. Even better, with the right paperwork and good credit, you can get cash in hand the same day that you apply for the loan.
Another option would be to take out a home equity loan. Our home equity loans offer fixed rates, the ability to borrow lump sums, and flexible repayment terms, among other benefits! These loans can be used not just for home repairs but also for milestone life events like weddings or big family vacations.
Home Remodeling Projects
A home remodeling project can turn a dull and dated room into a place that’s warm, inviting, and cozy. Certain remodeling projects can even increase the value of your home. If you add a garage, for example, it will not only add convenience to your life, but it will increase your home’s equity.
A personal loan allows you to borrow the money you need without having to use high-interest credit cards. In addition to saving money on interest, you can repay the loan over several years, which helps with budgeting.
You could also apply for a home equity line of credit (HELOC) and borrow up to 70% of your home’s equity to fund renovations, repairs, and upgrades.
Special Events
A special event like a wedding can be very expensive when you calculate the venue, the vendors, the dress, the rings, the honeymoon—the list goes on and on! But with our low-rate personal loan, you can pay those bills upfront and then pay off the loan in fixed, monthly payments.
This way you can focus on making your special day exactly how you’ve planned it, instead of worrying about how you will pay for it all!
Education Expenses
Many people finance their education with student loans. But tuition, books, and housing may not be your only expenses while you’re in school. Just a few things you may need extra money for include:
- Internship attire
- Summer storage
- Study abroad expenses
- A new laptop computer
- Clubs, sports, and Greek life
If you’re suddenly faced with an unexpected expense, a personal loan can be used to cover the cost and be an important lifeline when you’re living away from home and need some extra money.
Personal Loans With San Francisco Federal Credit Union
If you’re in a circumstance where you need to borrow some money, SFFedCU offers personal loans with competitive rates and no loan origination fees. Loan amounts start at $500 and repayment terms of up to 84 months are available.
Applying for a personal loan with SFFedCU is quick and easy. You can apply online, by phone, or at one of our branches. If you’re approved, you can obtain the money the same day.
Before you apply for a personal loan, there are some important things to consider. Click below to learn more!