A personal loan is an amount of cash that you can borrow for various purposes. For example, you could use a personal loan to pay for house repairs, consolidate debt, or even plan a nice wedding. Personal loans are available by banks, credit unions, and online lenders. Depending on your credit and income history, the money you are approved for may come in small amounts or large sums. Personal loan interest rates and fees vary greatly.
It is important to understand how personal loans work to know what to expect when you apply for one. In general, short-term loans are used to pay small bills or unsecured loans like utilities. They also can be used to take care of major expenses like tuition, medical bills, and debt consolidation. Before you sign on the dotted line, it is important to consider whether your credit scores will allow you to obtain the funds or not.