
You may be thinking “what are personal loans used for?” A personal loan is a loan taken out for virtually any particular, personal need you may have. For many, personal loans are used in order to make large home-related purchases such as a new stove or a washer and dryer, as purchases like these can be much larger than a paycheck for an entire month. Other times, personal loans are reserved f
or needs such as debt consolidation, a wedding, or a vacation.
Advantages of taking out a personal loan could be to gain special benefits only offered by credit card companies or retailers. An example of this may be any scenario where you transfer credit card balances into an account with a 0% rate and pay off as much as possible during the time frame that the rate is applicable for. At the end of that time frame when the rate is due to increase would be a great time to pay off your remaining balance with a much lower interest personal loan.
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