A credit card is a valuable tool when you need money in a pinch. But if you’ll need a little time to pay it back, it’s probably not the right financial tool for you. Getting a personal loan is a much better idea if you’re borrowing larger amounts of money that you won’t be able to pay back immediately. Here are some good and bad reasons for using personal loans.

Good Reasons

Investing in Your Home: Whether you’ve got an expensive repair that needs to be made, or you just want to redo your kitchen –  spending money on your home doesn’t usually come cheap.  A personal loan will allow you to up the value on your home and provide you with a fixed monthly payment that you can handle.

High Interest Debt: Credit card debt can be hard to get out from under. If you’re dealing with debt on multiple credit cards, you may be in some financial trouble. A personal loan with a fixed monthly payment can be a great option for you if you’re dealing with a mountain of debt that seems impossible to climb. However, you just have to remember to not continue to use your credit cards along with the personal loan, and further get yourself into serious debt.

Starting a Small Business: You’ve been dreaming about opening up your own business. Follow your dreams and make it happen. Startup costs can be expensive, so this is a great reason to get a personal loan.

Bad Reasons

Vacation: If you don’t have the money you need to take a vacation, the last thing you want to do is go into debt just to make it happen. Staycations are a good alternative and can be just as relaxing as a vacation, so save your money and by next summer maybe you’ll be ready to book that trip to the beach.

Investments: No matter how good you think you are at investing, it’s still a little like gambling. There are no guarantees when it comes to investing, so don’t put yourself into debt for something that may just end up putting you even further into the hole.

Wedding: Weddings can be super expensive. If you can afford a pricey wedding, great. But if you don’t have the funds for your dream wedding, do you really want to start off your new life together with a shiny new pile of debt?

Sometimes, for important items we need in life – the money just isn’t there. First Financial is dedicated to providing small personal loans that can help cover the costs of life’s necessary expenses. If you live, work, worship, volunteer, or attend school in Monmouth or Ocean Counties in NJ – this may be a great financial solution for you. Learn more and apply online today!

*APR = Annual Percentage Rate. Rates are subject to change. Maximum loan is $25K and maximum term is 60 months. Not all applicants qualify, subject to credit approval. A First Financial membership is required to obtain a personal loan, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan. See credit union for details.

Article Source: John Pettit for CUInsight.com