While personal loans involve interest and credit impacts, they also have several potential benefits. For instance, credit history standards aren’t typically as high for personal loans as they are for some other types of lending like credit cards. Personal loans also offer more versatility than most loans (mortgage loans and auto loans, for example, are intended for particular purposes). These loans provide both reasonable interest rates and flexible repayment timelines. Here are a few ways you could use one to live larger that you may not have thought about before:
1. The “Dream Wedding” Loan
According to The Knot, the average cost of a wedding in 2019 was $28,000. For couples who don’t have that kind of cash, a personal loan can allow them to cover the costs now and repay them later. A wedding loan can be used for big-ticket items like the venue and bride’s dress, as well as smaller expenses like flowers, photography, the cake and a wedding coordinator. If you don’t want to deplete your savings account, consider a personal loan to help make your engagement and wedding exactly the way you always dreamed it to be.
2. The “Trip of a Lifetime” Loan
Your average vacation might not cost enough to necessitate taking out a personal loan, but what about a honeymoon, a luxury cruise or the ultimate dream trip abroad? Whether you’ve just graduated and want to go on a trip or you’re celebrating an anniversary, personal loans can help you finance your dream vacation.
3. The “Go Green” Loan
Personal loans could help you pay for eco-friendly home improvement projects like weatherization, solar panel installation or a kitchen renovation that uses sustainable materials and appliances. If you don’t have enough equity in your home to take out a HELOC but you still want to take on some energy saving projects, a personal loan may be your best bet.
4. The “Get Active” Loan
A good way to use a personal loan is to invest in yourself directly, and by that we mean investing in your personal health. Personal loans can make it easier to pick up that new hobby or fitness routine, especially if you’re looking to get specialized equipment. This is another way you can mix fun with function. With the pandemic, it’s becoming increasingly common to think about building a home gym. The difficulty here is that gym equipment can be incredibly expensive. Picking up just one Peloton bike can set you back quite a bit of money, so if you’re planning to really furnish a private exercise room, you’ll probably need some help paying for it.
5. The “Turn your Hobby into a Side Hustle” Loan
One use for a personal loan that’s more fun, but can still be practical, is to use it to launch your side hustle. Nowadays lots of people have hobbies or skills that they’re turning into a side-business, whether that’s on an e-commerce site like Etsy or something more traditional like portrait photography. A personal loan for a camera upgrade, new computer or a higher end product like laser cutter or 3-D printer might be a good fit to get you set up with the equipment or materials you need to get started. That said, don’t let your ambition override common sense. Make sure you can cover the terms of the loan even without your side-hustle’s profit.
6. The “I Need My Own Space” Loan
If you need a change of pace in the places you spend the most time but maybe don’t have or want to use your home’s equity, this is a great use of a personal loan. This could involve revamping your entertainment space into a theater room, upgrading your home’s technology, converting that junk room into a craft room or building the ultimate She-Shed. If you find you’re spending more time in these spaces than before, it’s absolutely worth it to make sure they’re places where you actually want to be.
7. The “Your Imagination is the Limit” Loan
Personal loans come with incredible flexibility and much more manageable rates than a lot of credit cards. Once they’re approved, they give you the opportunity to make a change sooner rather than later. In a lot of ways, they’re a great fit for all of the scenarios above. This doesn’t mean they’re always the best choice for every need, however.
If you’re setting your sights on truly big changes, you might be pushing the limit of what a personal loan has to offer. Or better yet, you might just want to look at a different kind of loan. If you’re looking at a boat or an RV, for example, you should probably check out our recreational vehicle loans. If you want to build some add-on to your house, you’d probably want to check out our Home Equity products, instead.
If you’re looking to start living larger, our personal loan solutions are a smart way to borrow the money you need—whatever the reason. Apply online, call Member Services or stop by one of our offices today — and if you have questions, we’re here to help!