What are the benefits of obtaining a personal loan?

The benefits of obtaining a personal loan include being able to use the money for nearly anything, building credit if you pay the bills on time, and not having to put down any collateral. Personal loans also can have low interest rates, online approval and quick funding.

Benefits of Obtaining a Personal Loan

• Use them for many things. You can use a personal loan for almost anything. Some popular ways to use a personal loan include paying for home improvements, consolidating debt, or simply making a large purchase. 
• Build your credit. When you make your payments on time, the lender will report positive information to credit bureaus, which will raise your credit score.
• Pay over time. With a personal loan, you do not repay the loan all at once. You typically have 12 - 84 months to repay what you borrowed, plus interest. To see how much a personal loan will cost you over the life of the loan, check out the free personal loan calculator on WalletHub.
• Predictable payments. Personal loan payments are typically made in equal monthly installments, on the same day each month.
• Borrow large sums of money. Personal loans usually range from $1,000 to $100,000. Some lenders may offer loans with smaller dollar amounts, too.
• Manage your debt. If you have existing debt spread across multiple lenders, a personal loan can help you combine the debt into one easy-to-manage loan that has a lower APR. If that’s what you want a personal loan for, check out WalletHub’s picks for the best debt consolidation loans.
• Quick decision & funding. After you apply for a personal loan, you may get the decision the same day or within a few business days. Some fast-funding personal loans provide you with funding as soon as the same day you apply, too. Applying online will usually get you the fastest decision.
• Usually don’t need to put up collateral. Unsecured personal loans do not require you to put anything up as collateral. On the other hand, secured personal loans do require collateral, such as a car or money in a savings account. 

If you’re ready to start comparing options, check out WalletHub’s picks for the best personal loans. Then you can estimate your rates with the free pre-qualification tool on WalletHub.