Some loans are reserved for a specific purchase like you buy a home with a mortgage loan, you purchase a car with an auto loan and you pay for college with a student loan. But a personal loan can be used for just about anything. Some lenders want to know for what reason you are borrowing a loan, but as long as the loan is borrowed for a responsible and legal reason, you can use loan amount wherever you wanted to. A personal loan often has no collateral—it is “ unsecured ”—the interest rate will probably be higher. There are also secured personal loans if you want to lower your costs. Here are five circumstances in which a personal loan might be a good idea . 1. Consolidate Credit Cards 2. Refinance Your Student Loans 3. Finance a Purchase 4. Pay for a Wedding 5. Improve Your Credit The Bottom Line Personal loans can be useful, given the right circumstances. For example, most people can’t afford a luxurious wedding but getting a loan for a wedding can help them to afford their dream w...
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