There comes a time in almost every person’s life when they may need a little extra cash. A personal loan is designed to help you manage a financial issue. It may be an unexpected expense, like replacing a furnace or expensive car repair. You may have the opportunity to take a dream vacation. You may even have the money in savings but don’t want to drain your account. These are some of the things you can use personal loans to manage.

Personal loans are borrowed from a bank, credit union or other type of lender that is paid back in installments at a fixed amount. Normally, a personal loan is repaid in between two and five years with interest rates that can range from 6 to 36 percent. A personal loan is usually unsecured which means you don’t have to put up collateral to take out the loan, unlike car loans which use your car to secure the loan or a mortgage which uses your home. The lender may not even ask why you need to borrow the money as you can use it for any reason.

Credit cards often have much higher interest rates than personal loans, although this is not always the cases. You may also be able to take out a personal loan for more than your credit limit on your credit card. One reason people seek personal loan quotes is to consolidate high-interest credit card debt. Since a personal loan has a lower interest rate, the debt can be paid off much faster.

Taking out a personal loan to consolidate debt is a sound financial decision as long as you stop using the credit cards until the loan is paid in full. If you don’t have significant equity in your home or don’t want to take out a home equity line of credit, you could use a personal loan to finance any home remodeling. You could use the funds to put in a swimming pool, remodel your kitchen or replace your roof. If your company has recently relocated you to a new town, a personal loan can be used for moving expenses. A personal loan can allow you to pay medical bills, like dental work, cosmetic surgery, fertility treatments, medical travel, parking and medications. Adoption expenses can also be covered by a personal loan.

Many personal loans companies offer online personal loans. Like a personal loan borrowed from your local bank, credit union or finance company, online personal loans provide you with funds that can be used for any reason. They are convenient and you may prequalify for the loan without hurting your credit. Some online lenders offer funding the same day or the next day and there are many that will lend to you even if your credit is poor. Because you don’t have a relationship with an online lender, however, you don’t necessarily know if you can trust them. Many online personal loans companies charge significantly higher interest than your bank or credit union would charge. There have been instances where online loans companies charge interest rates as high as 365 percent and some use deceptive lending as well as illegal collection practices. Be sure to do some research before borrowing from an online lender.

Like all loans, in order to qualify for even small personal loans, the lender will want to review your credit. The most important factor in getting approved for unsecured personal loans is your credit score. Because the loan is not secured by property, like a car or house, lenders usually require a credit score of 680 or higher. The lender will also review how much debt you already have and will compare that to your income. The amount you want to borrow is also a factor in whether you will be approved for a loan.

If you are looking for personal loans with bad or poor credit, it is possible to find lenders who are willing to work with you. Personal loans with bad or poor credit may come with higher interest rates. However, taking out a small personal loan is also a good way to start repairing your credit. Many experts suggest small personal loans as a step in rebuilding credit, especially if you are working toward purchasing a vehicle or a new house in the future and your credit has been damaged significantly.

EmployeeandMemberDiscounts.com can help you find personal loan quotes that will fit into your budget and can help you get through a financial issue. We even have lenders who offer a personal loan to those with bad or poor credit repair options. Visit our website today to learn more or give us a call to see how we can help you set up a discount system for your organization.