Monthly Archives: October 2015

5 Reasons When Its Ok To Seek A Personal Loan Online

Most times financial experts and writers will tell you debts are bad. In many cases debts are, who wants to be in debt? Yet believe it or not, not every debt is bad. Debt helps us to build up our credit history and our FICO score for one, secondly it allows us to get a home and a car, among other things. So some debt is good debt, needed debt, and some debt, such as racking up $10,000 on credit cards buying stuff we do not need is bad debt. When we manage our debts wisely, good debt can be a tool to obtain the things we need in life. Which is why personal loans when used correctly can be a very beneficial type of debt, that can help us with sudden emergencies and other long term needs. This assumes we use the money from a personal loan wisely. Lets discuss some good reasons people take out personal loans for.

Medical Expenses
Medical expenses are a prime example, if not the best example of a good reason to take out a personal loan. One should never put off a medical procedure simply due to finances or not being able to afford it at the time, as our health is important. We only have one life, and the debt from a personal loan is a small thing when compared to this. Putting off medical care can complicate whatever condition we have and make it worse.

Home Repairs and Improvements
Your home is likely your number asset, so home repairs should never be out off, especially when it comes to emergency repairs such as water damage restoration. Putting off repairs, especially over money, is never a good idea, and putting off these repairs could lead to more costly repairs down the road. This is one area where a personal loan can definitely help, and even save you money later. Another area where personal loans are a good idea is taking out a personal loan for home improvements, since they add value to your home. Think of a home improvement as an investment.

Consolidate Debt
If you have many smaller debts, sometimes a personal loan can be a good idea to consolidate all of those debts down to one more manageable debt. One lady I advised her issue was that she had 15 separate debts and kept missing payment dates, so her credit one would suffer with each missed payment. Simply rolling all debts into one monthly payment can greatly assist people and make their bills more manageable, so this is one instance where a personal loan would make sense.

Better than Credit Cards Often Times
Sometimes, not always, using a personal loan is a much better option than breaking out the plastic for a large purchase or expense. The only time breaking out plastic is a better idea is if you have a low interest rate and if you do not mind your credit score tanking due to a high credit utilization. The more revolving credit you use out of your total credit limit, the lower your credit score will be. The rule of the thumb is to use no more than 30 percent of your available credit, anything else signals to lenders that you are having financial problems. Many times a personal loan will offer you a lower interest rate, and keep your credit score intact, so in this case a personal loan would make the most sense.


Emergencies

These happen to every day americans every single day of the year. Often times these emergencies catch us unaware, such as needing a new transmission, which is an expensive endeavor. Even those of us with rainy day funds can be hard pressed during an emergency. Also you may need that rainy day fund for another sudden emergency, in these cases a personal loan is the right choice.

If you need a personal loan, be sure to read the reviews of personal loan lenders on this website to find the right lender for your needs.