What Personal Loans Can Be Used For

Feb 18, 2021
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While you may consider a loan a daunting responsibility in terms of paying it back, it’s an incredibly useful way to address many of your financial needs. You can consolidate debt or put in the downpayment for a significant investment or purchase. Personal loans can be used for just about anything within reason, except anything illegal or for gambling. Here are some reasons to get quick online personal loans and how they can help your everyday needs.

Emergency Cash

Most people will find themselves in a rough spot at one point and may not be able to support their daily expenses. If you need money immediately to cover bills, an emergency, or other urgent situations, then a personal loan would be the best option. Many lenders can provide online applications that can be approved in minutes as long as you provide the necessary information and meet the requirements. These loans can be granted as quickly as within the same day or over several business days and can cover emergencies such as medical bills, funeral expenses, and payments for overdue bills and utilities.

Consolidate Debt

Fast online loans can also help you secure enough funds to consolidate your debts, particularly for credit cards. Credit card rates are often much higher than the interest rates offered by personal loans, which can be lowered if you have a good credit standing. Some of the best personal loans will charge as little as 4%. To consolidate your debt, take out a personal loan, pay off your outstanding credit card balance, then make a single payment to your new personal loan service.

Unexpected Repairs

Quick online payday loans are beneficial for things like unexpected car repairs, but they can also reach high interest rates upon repayment when you receive your next paycheck. You can get funding just as quickly with personal loans without the hassle of paying more than what you can by next payday. 

Homeowners can also take out loans for repairs or upgrades for their homes. Avoid using your home equity and credit lines since they’re secured for collateral by taking out a personal loan as an excellent alternative. You can also depend on personal loans to keep your home in case you fall behind on payments, and they are generally approved much more quickly than home equity loans.

Purchasing a Vehicle

Before making a final decision on an auto loan, consider the advantages that a personal loan will afford you. While auto loans have lower interest rates, they also use your vehicle as collateral since they are secured loans. Those who are concerned with missing payments and getting the vehicle repossessed might want to take out a personal loan instead. 

Wedding Costs

Weddings are often very costly, and borrowing money to pay for them can be a risky move. The first step to remedy this is to pare down your wants and non-negotiables to fit your budget; borrowing should be your last resort. However, if you do need to take out a loan to fund your wedding, a personal loan will often be more cost-effective than swiping your credit card and dealing with high interest rates later on.

Conclusion

There are many options for people who need extra funds, whether it’s for an emergency, a big purchase, or a personal expense that can’t be covered by one paycheck for the time being. One of the most affordable and accessible ways to do this is by taking out a personal loan. With lower interest rates and immediate approval, it’s an excellent way to finance your needs for the time being. 

At Hoopla Loans, you can apply for online personal loans with instant approval in South Africa. Whether you need funds for your home, medical expenses, car, or other needs, we’ve got just the right loan options for you. Get in touch with us to get your loans today!