When, Why and How to Consider Using a Personal Loan
Restoring your financial health after an unexpected crisis or life event can be a tough journey. You’re trying to reshape your financial habits, improve your credit score, pay off old debts and continue managing your routine expenses. It can often feel like you’re walking a tightrope. Any gust of wind (i.e.: an unexpected expense) can have a terrible impact on the progress you’ve made so far. And, it can send everything back into chaos. Fortunately, during this shaky time there is an option for a safety net. Whether it’s to fund an unexpected expense, an expensive but necessary repair, or to have the money you need to put away debt for good, an unsecured personal loan can be a great solution and effective way to avoid additional financial hardship or struggle. Before you apply, here’s what you should know about this solution.
What is a personal loan?
A personal loan is an unsecured installment loan. This means it is not tied to any collateral like your car or home. And, it has a fixed amount, term and payment amount. A personal loan offers an opportunity to get the amount of money you need deposited directly into your checking account. Then, you can use it however you need to use it. This makes a personal loan unique from more traditional loans such as home loans, student loans or auto loans.
What can I use a personal loan for?
While a personal loan by nature can be used for anything you want, there are several common uses for one—especially when you’re in the process of restoring your financial health. Many of our customers find personal loans useful for home repairs, unexpected medical debt, weddings, funerals, other debts like student or car loans or to cover a financial emergency such as a lost job. The key benefit to this loan is that it’s yours to allocate to your biggest and most immediate needs.
How do I know if it’s right for me?
There are many different strategies to handle a financial situation. If you’ve been dealing with debt for a while, you’ve probably been through some of these strategies. If you’ve been working through your debt or are well on the path to financial freedom, this can be a great way to ensure you stay on the path. It’s also a safer and more reliable option than a payday loan. However, if your reason to get a personal loan is because you can’t pay your bills or are drowning in debt, you may want to consider a more permanent debt relief solution.
How can I get one?
If you’re interested in the financial flexibility you can achieve with a personal loan, you have several options. When shopping for a loan, you’ll want to compare annual percentage rates and fees. At New Credit America we offer the Reload Loan. With this fast and straightforward loan, you can get up to $10,000 deposited directly into your checking account to use when “life happens.” And, there are no additional loan fees. To learn more about this product and to apply, click here.