There are times when you might want a chunk of cash, but you don’t want to pay the fees that come with a cash advance — and you certainly don’t want the high interest rate. In these cases, a personal loan can help. If you have good credit, it’s possible to get a personal loan at a reasonable rate, no matter what you are trying to accomplish.
What is a Personal Loan?
A personal loan is a (usually) unsecured loan designed to allow you to get a certain amount of cash for nearly any reason. Rather than being tied to a specific purchase, such as a car or a home, a personal loan can be used for almost any purpose. Some lenders like you to disclose what you’re using the personal loan for (moving, debt consolidation, wedding, or some other purpose), so be prepared to answer those questions.
Personal loans are also installment loans, unlike credit cards, which allow you to keep borrowing as long as you pay down what you owe so you still have a balance available. With a personal loan, you are given a finite amount of money, usually as a lump sum, and you are expected to repay it using installments over a specific period of time (usually between three and five years).