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.
In some cases, furniture companies offer these types of interest rate specials. Other times, you can take full advantage of credit card rewards programs by using a personal loan. However, credit card
companies that offer rewards programs typically may come with higher interest rates than credit card companies that don’t offer those special reward programs. In these cases, you may want to take out a personal loan in order to pay off the credit card balance, getting the rewards but not having to pay the higher interest rates.
Other advantages of taking out a personal loan is that they don’t require any collateral. Taking those advantages even further, when you take out a personal loan from Tio Rico, it will come with fixed rates and payments based on your monthly income, making budgeting a breeze. If you want to learn more, stop by one of our locations nearest you or call us right now at 602-322-1010 to speak with one of our personal loan experts!