A signature loan gives you quick access to cash and the rates are competitive. Plus, the payments are the same each month, so you know exactly when the debt will be paid off and the total cost of the loan. But when should you consider a signature loan over something else?
1. For Big Purchases
If you have big purchases coming around the corner — like holiday expenses, a wedding, or new household appliances —will you reach for your credit card? If you don’t have the cash to quickly repay your balance, interest charges can add up, quickly increasing the purchase costs. Plus, carrying a high credit card balance could damage your credit score. A low-rate signature loan may be a better option. Because the signature loan payment is the same amount each month, you know exactly what to budget for. You’ll also know the total cost of the loan and the date your debt will be paid in full.
2. Consolidate Your Debt
If you’re juggling multiple loans or credit card debt, consolidating into a single low-rate loan may help you save money on interest so you can pay down your debt quicker, and simplify your debt repayment plan.
3. Emergency Cash Flow
A signature loan is handy when you’re faced with costly surprises that might overwhelm your emergency fund — like extensive vehicle repairs, medical bills, or essential appliance replacement.
4. Home Improvement Projects
If you’re a homeowner tackling home improvement projects or repairs, like remodeling your kitchen or switching to environmentally efficient landscaping, you may be aware that you can tap into your home’s equity for cash flow through a Home Equity Line of Credit or Loan. However, for small or medium projects, a signature loan is quick and easy and doesn’t reduce your home’s equity.
5. Cover Moving Expenses
You’ve paid your deposit on your new apartment and now you’re faced with moving expenses. The costs of packing materials like bubble wrap and boxes can be surprisingly expensive. Plus, you may need to secure a moving company or truck rental. A signature loan can provide peace of mind during your transition without having to tap into your emergency fund.
SESLOC Signature Loans are affordable, and it’s quick and easy to apply so you can get the funds you need to meet your goals. Learn more, or apply today »