You can use a personal loan for just about anything, from credit card debt consolidation and car repairs to weddings, home improvements and medical procedures. As long as you don’t take out a loan whose terms specify what the funds must be used for, you’re free to do what you want with the money. For example, LightStream has different APR ranges specifically for different loan purposes, but most lenders do not.
The only things you’re really not allowed to spend the money on are school tuition (you need a student loan instead), gambling and illegal purposes.
Things you can use a personal loan for:
- Debt consolidation
- Medical/dental bills
- Home improvement
- Starting a business
- Emergency expenses
- Car repairs
- Veterinary bills
- Big purchases
Those are just some of the expenses for which you can use a personal loan. However, just because you can use a personal loan for almost anything doesn’t mean you necessarily should. Personal loans charge interest and fees, so it’s best to only take out a loan for expenses that are necessary or will profit you in the long run.
A medical bill is an example of something that might be necessary, and remodeling a kitchen is an example of something that could increase the value of a home. On the other hand, while you might be tempted to take out a loan for your dream wedding or vacation, it’s better to save first and only spend money you already have.
Finally, it’s worth noting that you won’t be able to use a personal loan for anything if you can’t get approved for one. Personal loans tend to require a credit score of at least 660, though some accept lower scores. You can see your personal loan approval odds with various lenders by using WalletHub’s free pre-qualification tool.
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