People get loans for a large variety of reasons, with some of the most common being to pay for large purchases, for debt consolidation or to help with emergency expenses. There are benefits to obtaining a loan, including the possibility of increasing your credit score and the ability to afford things that you couldn’t on your own. At the same time, they have to be repaid, and therefore need to be taken out with research and understanding of what your repayment terms will look like. Once you’ve weighed the pros and cons of taking out a loan, you can consider getting one for the following four situations in life.
College Tuition
Unfortunately, college tends to be quite expensive in the United States, and many students need help with being able to afford tuition and other fees. One of the most common ways to receive financial assistance is to take out a student loan from a private lender. Private lenders offer flexible repayment plans and often can give out larger loans compared to non-private lenders. You can fill out a quick online application to see if you can get approved.
Vehicle Financing
Car loans are one of the most popular types that individuals get across the country. Many people prefer shopping for a new car, as they know it will work well, have a good warranty and be serviced if needed. At the same time, new cars can add up in expenses, usually reaching tens of thousands of dollars. Because this is such a common loan that is taken out, the possibility for just which kind you can get ranges greatly and will depend on your credit score, income and other debts.
Wedding Expenses
Weddings are known for being notoriously expensive, causing a lot of stress when it should be a time for pure happiness. Taking out a personal loan to cover your wedding can help with such costs as the wedding venue, dresses and tuxes, the wedding planner and even little things like the flowers or invitations. The amount of money you can get with a personal loan will depend on the typical factors of credit score and income, though usual prices range from $1,000 to $50,000. Keep in mind that repayment typically starts after the wedding, so only take one out if you are prepared to start paying it back right away.
Home Remodeling
Home remolding is yet another big expense that many individuals need financial assistance with. Many homeowners go with a HELOC, or a home equity line of credit, to finance their remodels. A HELOC allows you to have a line of credit available, with the collateral being your home’s equity. It acts as an alternative to a home equity loan, which is a lump sum of money and no credit. Both have their advantages and disadvantages, which will differ based on your own financial situation. At the same time, these two types of loans require equity, so they are not available for every kind of homeowner.
