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Personal Finances

4 Reasons to Take out a Personal Loan

Have you ever had an unexpected expense come up, but didn’t have the cash on hand to cover it? Ever had an unexpected repair needed for your car, but needed some additional financial support to get it done?

A personal loan with Amerant provides financial flexibility to individuals who need cash now and allows them to pay it back in monthly installments.

If you are in a similar pinch, a personal loan may be right for you. Here are some things you should look at when considering obtaining a personal loan:

  • Low interest rates: Typically, interest rates for a personal loan are lower than those of credit cards.
  • Larger limits: If you need a loan for a larger expense, a personal loan can be a great choice. Credit cards usually offer significantly less limits than personal loans.
  • No limit on use: Some loans, like home equity loans, have specific uses they need to be tied to. However, a personal loan is typically very flexible and allows you to use it however you need or want.
  • Building credit: Paying off your personal loan is also a great way to build your credit and help bump your credit score.

Now that we have a better understanding of what some of the benefits are of obtaining a personal loan, how can one really help? What are some potential uses for a personal loan?

  • Debt consolidation: If you have some higher-interest debts that need to be paid off, such as credit card debt, you can use a personal loan to consolidate your debt.
  • Finance a major one-time expense: Life can be expensive sometimes. Things like a new car, weddings, quinceñeras, etc. aren’t cheap. A personal loan can help you finance any and all of these.
  • Refinance an existing loan: You may already have a personal loan, but you may find a personal loan option with terms that are more favorable than the one you already are indebted to. Refinancing an existing loan may be of benefit to you.
  • Emergencies: That said, life happens. Medical emergencies, accidents, and other unexpected incidents can get expensive too.  A personal loan can help you cover those costs as well.

There are plenty of uses for a personal loan, and Amerant makes it easy to apply for the right loan for you. Learn more today!

Daniel Zayas
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