5 Reasons Why You Need a Personal Loan


If you’ve suddenly found yourself faced with an unexpected expense or if you are looking to start an expensive personal project, you might be considering taking out a personal loan. A personal loan is a great way to pay for a variety of things, but they’re not the perfect solution for every purchase. In this post, we’ll take a good look at what a personal loan is, how they work, and some common situations where personal loans are the right way to go.

What is a Personal Loan?

Personal loans are unsecured loans commonly used for large purchases, emergency expenses, debt consolidation, and more. Since they are unsecured, you do not have to offer up anything as collateral, unlike with a home loan or car loan. However, if you do not pay your personal loan on time, your credit score could suffer or the loan could go into default. 

How Do Personal Loans Work?

To receive a personal loan in Ohio, you’ll need to apply for one from a lender. After you’ve been approved, the lump sum of the loan is deposited into your account. This process can take up to three days or can be as quick as 24 hours. Once you’ve received your loan, you are expected to pay monthly installments. Most personal loans in Ohio have fixed interest rates compared to credit cards, making them a less expensive option in many cases.

5 Reasons Why You Need a Personal Loan

Here are some of the most common reasons for taking out a personal loan in Ohio.

1. Debt Consolidation

Consolidating debt is a common reason for taking out a personal loan. If you are paying off multiple loans or credit cards with high-interest rates at once, consolidating them into one personal loan is smart. A personal loan in Ohio will typically have a lower interest rate than most credit cards, and paying one monthly payment is far less stressful than multiple monthly payments.

2. Emergency Assistance

An emergency can take many forms. Whether it’s an unexpected medical bill, car repairs, or funeral expenses, a personal loan can relieve the financial burden and provide peace of mind. Even with health insurance, some medical procedures can cost thousands, a sum most people don’t simply have lying around. Funeral expenses in Ohio can range upwards of $8000 and payment is often required upfront for burial services.

3. Home Improvement Projects

Owning your own home is a great joy. The repair and improvement projects that come along with owning your own home, however, can be a bit pricy. Many homeowners opt for personal loans to help finance these expenses over taking out a home equity loan because they don’t have to offer up their home as collateral.

4. Large Purchases

If your refrigerator bites the dust or you’re suddenly in need of a new laptop, a personal loan can be an absolute lifesaver. Home appliances, computers, and other equipment are hugely necessary to our everyday lives, but the cost can be a major hindrance to replacing these items. A personal loan alleviates that cost, allowing you to purchase the items you need without paying a large amount upfront.

5. Wedding Expenses

The average cost of a wedding in Ohio was around $22,026 in 2017, a number that has certainly gone up over the years. Unless they’ve been saving specifically for their nuptials, many happy couples simply don’t have that kind of cash lying around. If having a big wedding has always been your dream, a personal loan can take the stress out of the expense so you can enjoy your special day in peace.

When Not to Take Out a Personal Loan in Ohio

Though a personal loan is right for a variety of situations, there are times when you should not take out a personal loan.

  • You can’t afford the monthly payments. This should be a no-brainer, but if you can’t afford to pay off the personal loan month after month, you should not take out a personal loan. If you’re already on a tight monthly budget, a personal loan may not be right for you.
  • You have bad credit. If you have a low credit score, you’ll likely have a high interest rate and a difficult time finding a lender. Some companies, like America’s Loan Company, however, offer bad credit personal loans to help individuals with bad credit. These loans often help improve your credit score, too.
  • You don’t need it. Want to treat yourself to an expensive vacation just because? Want a fancy new refrigerator with a touch screen even though you already have one? A personal loan isn’t a smart choice in these cases. Personal loans are extremely beneficial for unexpected and necessary expenses, but you don’t need to go into debt if you don’t have to.
  • You qualify for better options. There are other financing options available that better suit specific situations. When buying a house or car, or paying for your education, there are specific loans that come with benefits specific to those situations. A mortgage, student loan, and car loans are often better than personal loans.

Personal Loans Pave the Way to Financial Stability

Personal loans can be used for a wide variety of reasons and can be enormously beneficial. If you think you qualify for a personal loan in Ohio and are ready to take the next steps, fill out our online personal loan application or visit one of our local branches. America’s Loan Company wants to make the process of applying for a personal loan in Ohio simple and stress-free. Cover your financial needs, build your credit, and get back on track with a personal loan today.