3 Smart Ways to Use a Personal Loan

Personal loan from the bank

Do you need to finance a purchase or pay for your home remodelling project, however, lack the funds to do so? A personal loan might just be right for you. You could use this type of loan for just about anything.

Additionally, qualifying for a personal loan in Singapore is much easier than qualifying for other types of loans. Most lenders only require that you have a steady source of income and a good credit standing. Here are other examples of when a personal loan is a good idea.

1. Use it to pay off your credit card debts

If you are paying debts for multiple credit cards, getting a personal loan will help you consolidated all of these debts into just one monthly payment. This is a very smart move, especially if you are falling behind on your credit card payments.

This is because a personal loan may have lower APRs or annual percentage rates than credit cards. So, this does not only help you avoid missing payments, but it also helps you save on interest rates.

2. Use it to pay for your medical expenses

Nowadays, it’s really expensive to get sick. Aside from the hospital bills, you also need to think about the costs of the medicine and your doctor’s professional fee. When the bills start piling up, you may feel overwhelmed and even wonder where you can get the money to pay for them.

A personal loan can help cover the medical bills now, so you’ll only need to worry about paying smaller amounts monthly until you pay the loan in full.

3. Use it to finance a purchase

Starting a business, even a small one, doesn’t come cheap. You will need to make a lot of purchases, especially if you need expensive equipment. If you’re having trouble getting a small business loan to finance all of your purchases, then a personal loan is the next best thing.

A personal loan makes sense if you need to purchase really expensive equipment for your business, remodel your home or pay off credit card debt. However, a loan is still a loan, so only borrow when you absolutely need to. Lastly, pay in time to avoid incurring late payment charges and fees.