Personal loans can 100% be a valid option when you need some extra help and don’t want to dip into your emergency funds or rack up any more credit card debt. In fact, it’s actually a pretty smart thing to do.
Currently, over 19 million* Americans already have a personal loan versus the 176 million that have credit cards. Let’s go over some of the best use cases and how AmOne, a loan matching service for those looking to borrow up to $50,000, can help.
60% of Personal Loans Are Used for Debt Consolidation
Most people take out a personal loan to help consolidate their credit card debt. Obviously, you don’t want to get into Squid Game-level debt, so combining all your older debts under one lower interest rate is an option.
So if you have credit card debt of $50,000 or less, AmOne can help by matching you with a low-interest loan to pay off all your balances.
This will leave you with just ONE bill each month, making it easier to manage as well as benefiting from a lower interest rate. AmOne starts at just 5.99% APR compared to credit cards that can go as high as 36%!
The lower the APR, the LESS interest over time you have to pay back, which means getting out of debt even faster, which is the whole point.
“AmOne did an amazing job with pairing me with a company that would approve me with a loan. Thank you for helping me in my time of need. Everyone who handled my loan was courteous and professional. This was a great experience.” -Danielle C.
Just make sure not to use the same cards to add on even more debt since that’ll defeat the purpose!
Did You Know? Personal Loans Can Help Build Your Credit
Regardless of your credit status, AmOne can find loans with APRs from just 5.99%. You can find some of the best personal loans with fair credit.
However, the better your credit, the more eligible you are to get lower interest rates (which is the goal). When people apply for a personal loan, the lender checks their credit history and analyzes their cash flow to ensure they can handle the payments. If your credit score is in the good range (670-850), you’ll receive a lower interest rate.
If you know your credit could use some more work, you can also use a personal loan to boost your credit! Versatile, right? You could see a 20 – 40 point increase in your credit score after a few months of on-time payments. As part of AmOne’s service, they can also connect you with a reputable credit repair company if needed. Some consumers have seen up to 100 points increase using this method. AmOne can help you determine if this is the right option for you, and in 6 months, you could qualify for an even better rate after credit improvements.
And don’t worry, using their service just to check your options and get more information has no credit score impact.
10 Other Uses for Personal Loans
We know that most personal loans are taken out for debt consolidation, but you may not know there are plenty of other use cases. These are instances when you don’t want to put big purchases on a high APR credit card or be tempted to overspend, so a personal loan makes financial sense.
- Travel/Vacation (Family Vacations and Honeymoons)
- Home Improvement Projects
- Medical Bills
- Student Debt
- Small Business Startup Expenses
- Funeral Costs
- IVF Treatments
- Paying Off Other High-Interest Debts
There are so many uses for a personal loan, and it’s time people see it as a valid and useful option rather than a last resort.
How to Get a Personal Loan
The average loan people take out is $10,000-$15,000, but AmOne can help you with up to $50,000 if needed. Think about if you have current credit card debt that you can potentially save hundreds or thousands on by consolidating into one rate or any potential big purchases you have coming.
AmOne’s flexible repayment terms include
- The # of months/years you have to repay
- Interest rate
- What the monthly payment is
It only takes 2 minutes to check, and once approved, you can get the funds as quickly as one business day! With the versatility of personal loans, it’s time to look at them as smart financial decisions in the right situations rather than scorning them. Just be sure to commit to paying them back!