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5 Smart Uses for a Personal Loan

Did you know that personal loans are one of the most flexible, affordable options for borrowing funds? In addition to offering much lower interest rates than credit cards and fixed monthly payments, they can also cover nearly every expense.

This post will look at five scenarios where a Connexus Personal Loan makes great financial sense.

Consolidating High-Interest Credit Card Debt

One of the most common uses for a personal loan is debt consolidation. If you carry a revolving balance on your credit cards, you could use a personal loan to consolidate these balances.

Essentially, the personal loan replaces the credit card debt but at a much lower interest rate and with a fixed monthly payment. This means you can pay down your debt faster while saving on interest – all without taking on any additional debt.

Using a personal loan to consolidate high-interest credit card debt is one of the smartest ways to put this financial tool to use.

Home Renovations and Repairs

Home Equity Loans and Lines of Credit are generally the best options for funding home improvements, repairs, and renovations. However, they rely on the borrower having equity in their homes. What about homeowners that are facing a home repair project but don’t have enough equity against which to borrow?

A personal loan can help! Connexus Personal Loans can be used to cover the costs of unexpected home repairs or remodeling projects, should you need to borrow before you have home equity.

Covering the Cost of Unexpected Expenses

Most people reach for a credit card when facing an unexpected expense, like a large car repair bill, medical expense, or home repair cost.

However, credit cards almost always come with hefty interest rates that can make paying down the balance an expensive and lengthy endeavor. On the contrary, personal loans offer rates starting as low as 8.24% APR – plus, Connexus Personal Loans don’t have application fees, annual fees, pre-payment penalties, or origination fees. Unlike many credit cards, they also offer a fixed APR that lasts the life of the loan.

Using a personal loan instead of a credit card means you benefit from both interest savings and the comfort of knowing your monthly payment and rate won’t change.

An Alternative to Payday Loans

If you’ve poked around our blog, you know that we advise against payday loans.

Designed to make money off the people who can least afford it, payday loans offer quick cash to applicants who frequently have poor credit. The tradeoff for the “convenience” of these loans is their extremely high interest rates, which, according to the Center for Responsible Lending, reached over 600% APR in some states in 2021.

While a personal loan will have different lending criteria, they are still an affordable borrowing option that remains within reach for many families. If you’re thinking of taking out a payday loan, schedule a call with Connexus first. We may have loan options that can help you get the money you need without visiting a payday lender.

Covering the Cost of that Once-in-a-Lifetime Event

As great as it would be to pay cash for every significant step in life, we know it’s not always feasible. Whether it’s tuition expenses, a large purchase, a dream wedding, a new baby on the way, or that once-in-a-lifetime “bucket list” trip with the whole family, sometimes the funds need to be borrowed.

If you plan to borrow to cover upcoming costs, consider a personal loan. You can get the cash you need at a rate as low as 8.24% APR. Plus, our flexible options mean you can borrow the amount you need (anywhere from $1,000 up to $50,000) on a repayment schedule that won’t break your budget.

(Speaking of budgets, try our payment calculator now to see what loan amount might work for you.)

Get Started with a Personal Loan Today

Ready to borrow the funds you need for the next big step? Our online Personal Loan application is quick and easy, and our team is waiting to help guide you through the process if you need assistance at any time.

Get started today by scheduling a call to learn more about Personal Loans, or start your application now!

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