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10 Best Ways to Use a Personal Loan

Ever feel like your financial goals are just out of reach? Personal loans can bridge that gap. They are your secret ingredient or missing puzzle piece…your golden ticket or genie in a bottle. But what exactly can you use personal loans for? Keep reading to learn the top 10 ways to use a personal loan.

Definition of Personal Loan

A personal loan is a type of unsecured loan typically offered by banks, credit unions, and online lenders. It provides borrowers with a fixed amount of money that is repaid over a set period—usually with interest—and can be used for various personal expenses.

Top Ways to Use Personal Loan

Personal loans are the duct tape of your financial toolkit, versatile and ready for any job. Here are the most common ways people use personal loans:

1. Consolidate Debt

Think of debt consolidation as financial spring cleaning. By rolling multiple high-interest debts into one personal loan, you can save money on interest and make your monthly payments simpler. This approach not only helps reduce financial clutter but also can improve your credit score over time.

2. Home Renovations

Looking to transform your living space into your dream home? Personal loans are the key to financing home improvements like kitchen remodels, bathroom upgrades, or adding a new room. Unlike home equity loans, personal loans don’t require collateral, making them accessible to homeowners who may not have tons of equity built up.

3. Major Purchases

Do you need a new fridge to keep your cool? Or maybe a reliable car to replace your old one? Personal loans can provide the funds for large purchases, helping you avoid high-interest store financing options or dipping into your savings. Whether you're upgrading your home appliances, buying new furniture, or investing in electronics, personal loans offer a straightforward financing solution. Plus, by spreading the cost over a manageable repayment period, you can enjoy your new purchase without straining your monthly budget.

4. Medical Expenses

Unexpected medical bills can be a financial storm cloud. A personal loan can help cover these costs, ensuring you get the necessary treatment without the stress of immediate out-of-pocket expenses. This is especially beneficial for procedures not covered by insurance or for elective surgeries.

5. Education Costs

Education is an investment in yourself or your family, and sometimes you need a bit of extra cash to cover all the costs. While student loans are often the “go-to” for financing education, personal loans can help with additional expenses such as books, supplies, or living costs. They can also fund vocational training or certification programs that might not be eligible for traditional student loans.

6. Wedding Expenses

Weddings can be magical, but they may come with a fairy-tale price tag. A personal loan can help cover the costs associated with the big day. From the venue and catering to the dress and photography, using a personal loan allows you to plan your dream wedding without financial strain. It also provides the flexibility to manage unexpected costs that may arise during the planning process. By financing your wedding with a personal loan, you can enjoy your special day without compromising on your favorite details.

7. Vacation? Yes Please!

Sometimes, a dream vacation is just what the doctor ordered. Whether it's a tropical getaway, a European adventure, or a cross-country road trip, taking time to recharge and create lasting memories is important for your mental and emotional well-being. If you’ve been putting off a much-needed break, a personal loan can make it possible by covering travel expenses, accommodations, and activities.

PRO TIP: Before you go, plan your repayment strategy carefully to avoid returning from paradise to a financial headache.

8. Business Ventures

Have a brilliant business idea but need a boost to get started? A personal loan can provide the capital you need to launch or expand your small business. This is especially useful for those who might not qualify for traditional business loans. Personal loans can fund various startup costs, including purchasing inventory, marketing, or other essentials, giving you the necessary funds to get your business off the ground.

9. Emergency Fund

Life is unpredictable, and sometimes you need a financial safety net. Having access to a personal loan can provide peace of mind during unexpected events like job loss, urgent home repairs, or family emergencies. It allows you to address urgent needs without dipping into your savings or retirement funds. Additionally, a personal loan can help bridge the gap while waiting for insurance claims to process or other financial resources to become available, ensuring that you can handle emergencies promptly and effectively.

10. Break the Payday Loan Cycle

Personal loans offer longer terms and lower interest rates compared to payday loans, helping you break free from the cycle of debt. With flexible repayment options and no rollover fees, personal loans provide a more sustainable borrowing solution. Plus, they can potentially save you hundreds of dollars in interest charges, especially because the APR for payday loans can be sky-high!

Express Loans: The Best Personal Loans at Academy Bank

While personal loans aren’t one size fits all, they are pretty darn close! They can be used for a variety of financial circumstances—from medical expenses to planning your dream location—and are a great tool for managing finances and achieving personal goals.

Applying for a personal loan at Academy Bank is a simple process, which is why we call it an Express Loan. Whether you have a low credit score or have been in the credit game for a while, we make it easy for you to get the funds you need quickly.

Existing clients of Academy Bank can apply for an Express Loan in just minutes. If you’re new here, let us be your financial sidekick! New clients should first open a checking account with Academy Bank and then apply for the Express Loan. Like we said…it’s simple!

Member FDIC

Subject to credit approval. Restrictions Apply. Direct deposit relationship required. Origination fee, 10% or $100 whichever is less. Annual Percentage Rate (APR) is based on credit score. Only one personal loan allowed to any borrower at any time. Loan terms are based on the loan amount.