Personal loans are quickly becoming one of America’s favorite financial products. In the third quarter of 2023, around 23 million Americans took out a personal loan, a 10% increase over the previous year. This growth shows no signs of slowing down, so we here at Equity Bank thought it would be a good idea to explore the personal lending landscape.
In this article, we’ll discuss why personal loans are becoming so popular, some of the situations they’re most commonly employed in, and why Equity Bank should be at the top of your list if you’re considering a personal loan.
Personal Loans on the Rise
Personal loans are popular because they’re flexible and easy to access. If your credit is in good standing, personal loans generally carry favorable rates and allow you to make quick financial moves that may have otherwise been out of reach. Depending on your bank, repayment terms may be very flexible as well, letting you adopt a repayment strategy that is in line with your personal budget.
Personal loans are also becoming more popular as a result of people switching away from big banks. These large financial institutions have more rigid practices and provide less personalized care, making it difficult to trust them with something as close to home as a personal loan.
How To Use Personal Loans
Personal loans are not just useful for situations in which you need quick cash. Many times, you can use personal loans strategically to help you save time and money on big projects or financial hurdles. A few examples include:
Debt Consolidation
When rates are favorable, personal loans are an excellent strategy for consolidating other debt. Credit cards, auto loans, and other debt types carry significantly higher interest rates than personal loans, so many people use their personal loans to pay off their other debts. This not only allows you to cut back on the amount of total interest paid, but it can simplify the repayment process by cutting down on the number of entities you owe to.
Sales on Appliances / Home Improvement
Every homeowner knows how expensive maintaining and upgrading your home can be. Many of us are still using 10-15 year old appliances in one area of the house or another (I’m looking at you, squeaky washing machine). When sales for these expensive appliances come around, personal loans can help you jump on the opportunity without wiping out a significant chunk of your savings.
Home improvement is another area where many choose to employ personal loans. While you can take a HELOC or other type of loan, these may use your property as collateral, and can carry more risk than they’re worth (depending on the value of the loan). For many, a personal loan is right in the sweet spot, providing just enough value for the project without the massive risk of a HELOC.
Emergency Expenses
We’ve all been there. Something awful happens, and on top of everything else, you’re now worried about how much it will cost. Personal loans are a great alternative method for dealing with things like medical bills and car repairs. Generally, the interest on a personal loan from your financial institution will be significantly lower than what is charged by hospitals or debt buyers for delinquent or late payments. Using a personal loan can give you some breathing room and let you recover after a major accident.
What Makes Equity Bank Personal Loans Different?
Equity Bank has the character of a community bank with the services and products of a national financial institution, meaning you get the best of both worlds. We offer unbeatable rates on personal loans, and will work with you personally to ensure that repayment terms are in line with your budget and goals for the future.
Equity Bank also offers great perks like online/mobile support. Through the Equity Bank app, you can check on your loan and repayment status any time from anywhere, giving you full control. Our fast approval process also helps you seize opportunities and waste less time worrying.
See which personal lending products are right for you.
Equity Bank Helps You Capitalize on Opportunity
Equity Bank personal loans help our members tackle their toughest challenges and capitalize on once-in-a-lifetime chances. If you’re ready to bank the right way, contact us today or visit your nearest branch to speak with one of our talented team members.