If you have an immediate or long-term need for cash, taking out a personal loan can help. These loans are offered by banks, credit unions and even reputable online lenders. They’re a great option if you need to make a big purchase or cover one, like housing costs or a car.
Personal loans are often compared to credit cards, because both allow you to borrow money. But loans have some clear advantages:
- Personal loan interest rates are lower than credit card interest rates.
- You can borrow more money with a loan than you can borrow on a credit card.
- You can pay back these loans over the course of 2 to 5 years in affordable monthly installments.
Furthermore, if you’re looking for personal loans for bad credit, there are options available. Interest rates may be slightly higher if your credit score is low, but you can still get the cash assistance you need when you need it.