The great thing about personal loans is that they can be used to pay for just about anything. While there’s almost no limit on what a personal loan can be used for in Richmond, VA, we take a look at some of the better ways you can put your cash bonus to work in the 804.
A little extra cash can open a lot of doors in River City. An unsecured personal loan offers relatively easy access to a large lump sum of cash that can then be paid off over time in fixed monthly payments, usually at an annual percentage rate (APR) far below what you can get on a credit card. Best of all, it’s entirely up to you what you spend the money on.
We know what you’re thinking: that’s a lot of GWARbar burgers and craft brew, but we are here to tell you that personal loans are best used for major personal investments or “milestone” expenses that you can then pay off over time as part of your long-term financial plan. What are we talking about? Here are a few examples.
A wedding is a once-in-a-lifetime event that often comes when you can least afford it. Whether you have your eyes on the glittering chandeliers at The John Marshall Ballrooms or an ‘I Do’ Drive Thru “micromony,” a personal loan can help make your wedding as special as you have always dreamed it would be.
Whether you’re treating yourself or a loved one, a dream vacation can be a life-changing experience, and sometimes it’s time to just pack your bags and go. Planning a honeymoon? Let local travel experts help you coordinate, or stay (a little) closer to home with an unforgettable fall road trip along the 469-mile Blue Ridge Parkway.
While it’s a lot less glamorous, using a personal loan to pay for domestic appliances or fund necessary repairs and upgrades to your home lets you build equity without borrowing further against your home or building up credit card debt.
We all know the Richmond area is a mecca for all kinds of tempting, expensive things. If you’ve dipped a little too deep into your pocket to afford some of them, you’re not alone. In fact, the most common use for personal loans these days is to consolidate and pay off high-interest debt accumulated on credit cards and bills.
Similarly, we can all be caught off guard by unexpected costs such as hospital bills, emergency car repairs, or urgent home maintenance. While it could be tempting to try and pay this off using your credit card, it might be more realistic to take out a personal loan to cover an unforeseen expenditure. You’ll be able to plan ahead better and will probably pay less interest over time.
While a student loan is probably the best way to help afford your tuition costs, a personal loan can be useful for covering other necessities to help you succeed at school or work. Consider using a loan for expenses like books, computer equipment, or even specialist skills training that will help you succeed down the line.
Now that we’ve dipped a toe into the full range of things you could use your personal loan for, let’s consider when it really makes sense to use a personal loan and when there might be a better way to go.
Personal loans make the most sense when they will help to free up cash, improve your income or open up opportunities in the future. They work best when you are committed to budgeting accurately and paying back what you borrow as part of a long-term financial plan.
With this in mind, personal loans can be great for:
Used right, the fixed rates and predictable payments of personal loans bring stability and long-term savings for disciplined borrowers while avoiding the risk of having to use your home, car, or cash as collateral.
Personal loans are easy to apply for and come with few strings attached, making it easier to spend the money on things that will not pay for themselves in the long run. In general, a personal loan should not be used to pay for things that can be funded with less risk in other ways or to help finance other investments—especially ones where you could lose money.
In particular, that means personal loans should not be used for things like:
Personal loans are easy to apply for but it’s important to do your homework to ensure you get the best APR and terms. Consider talking to a community lender like Partners Financial Federal Credit Union. As a member-owned credit union, we are committed to your financial success and offer personal service you won’t find at a commercial bank.
Here are the key steps you should take in applying for a personal loan:
With a personal loan from Partners Financial Federal Credit Union, we can help you consolidate debt, pay for home repair and improvements, or finance the vacation of your dreams.
Our personal loans features include: