A personal loan can be a terrific option for a large purchase, debt consolidation or minor home improvements. Learn more about what personal loans are used for.
While there are several kinds of personal loans that are easy to get approved for, they tend to be more costly than a traditional personal loan.
A personal loan is a versatile type of loan you can get from a bank, credit union, or online lender. You pay it back in set monthly installments. ; Personal loans can be used for a variety of purposes, including emergency medical expenses and debt consolidation. ; Before pursuing a personal loan, learn how they work—and what you should consider when exploring different products.
A personal loan is an unsecured loan you can use to consolidate debt, pay for major expenses, and more. Check your rate for up to $40,000 with Discover®.
The best personal loan providers have minimum annual percentage rates of 6.94% to 8.99%, offer loan amounts up to $100,000 and don’t charge origination fees. ; Our recommended lenders are fast — you can get your loan funded as soon as the same day you’re approved, and no lender on our list takes longer than four business days to fund a loan. ; Among the 1,500 personal loan borrowers we surveyed, the average credit score was 654 and the average loan amount was $16,866.60.
Table of Contents ; What Is an Unsecured Loan? ; What Are Common Uses for Unsecured Personal Loans? ; What Are Some Different Types of Unsecured Loans?
14-min read · Expert Approved ; Written by · Rebecca Lake, CEPF® ; Reviewed by · Erin Kinkade, CFP®
Personal loans may be used for almost any purpose and are sometimes a good option, but they can be expensive, and there are often better alternatives.
Thinking about getting a personal loan? Knowing exactly what they can be used for is important. Learn more about personal loans and if one is right for you.
In this article: How Personal Loans Work · What Can I Use a Personal Loan For? · What Personal Loans Can’t Be Used For · What Credit Score Do I Need for a Personal Loan?