What Other Ways Can You Use Personal Loans?

Personal loans for medical expenses: If you are struggling to come up with the cash to pay for your medical bills, you might consider taking out a personal loan. 

Personal loans for debt consolidation: This type of personal loan allows the borrower to consolidate some high-interest debts, such as from credit cards, medical bills or other loans, and make one low-interest payment each month.

Personal loans for pet expenses: If you don't have pet insurance and are faced with a large emergency vet bill, a pet loan can help finance major expenses such as surgery or cancer treatment for an animal in your family.

What Is the Best Personal Loan Rate?

Personal loan interest ranges are typically from about 6% to 36%, depending on creditworthiness and other factors. Generally, the higher your credit score, the better your personal loan interest rate.

Also, the higher your credit score, the greater choice of personal loans you’ll have with favorable terms. Companies want to work with people who have good or excellent credit scores and are more likely to offer personal loans with better terms to these consumers.

“Realistically, you probably need a credit score of 680 to 700 or higher” to qualify for a personal loan, says Joseph A. Carbone Jr., certified financial planner and founder of financial planning firm Focus Planning Group. “If you are in a range of 620 to 680, you might need a co-signer to secure the line.”

But your credit score is not the only factor lenders consider when determining whether to approve you or what interest rate to offer. Companies will request information about your job, your minimum annual income, how stable your income is, your savings and more. Your answers can determine your eligibility.