A loan can provide you with the money you need to buy what you want. Fortunately, you can find a loan for almost any purpose, from paying expenses to borrowing to invest. Still, a loan may not be the best solution in all situations.

Luckily, there are particular times when loan support is ideal. This includes when you make some major purchases. The following eight items are examples when it is usually best to buy with a personal loan.

1. Essential Appliances

Today’s appliances are expensive. As an example, a refrigerator can range from $500 for a small bare bones basic model up to $12,000 for one with glass doors, smart technology, and advanced temperature control.

Of course, your household probably has many other expensive appliances such as a stove, washer and dryer, dishwasher, microwave, air conditioner, furnace, and water heater that all cost a bundle.

Why It Makes Sense to Use a Loan

  • Pay high upfront costs – Many of these essential appliances cost thousands of dollars, making it difficult to pay the full amount all at once. A loan offers the full amount to buy the item, with payments spread out over time.
  • Long-term savings – The best appliances usually cost more, but the initial higher cost is often worth it. They can provide long-term benefits such as less maintenance and more energy savings throughout the lifetime of the appliance, making them cheaper to operate.
  • Reasonable cost to borrow – Considering you can get what you need now and spread the cost out over time, the cost to borrow is justified. Plus, loans are available to almost any person, regardless of credit score.

2. Medical or Dental Procedures

Even if you have decent medical and dental coverage, there are some things that aren’t covered or they’re only partially covered. Luckily, a loan can make treatment more accessible.

Why It Makes Sense to Use a Loan

  • Treatments essential to health & well-being – Even if an insurance provider says they won’t cover a treatment, you may still need it or want it. Examples include cosmetic surgery or specialized care.
  • Prevention provides a great ROI – Generally, insurance only covers immediate needs. However, paying for preventative care through a loan could save you plenty in the future.
  • Improved quality of life – The top reason for a loan for health procedures is to improve your physical and mental well-being. If you look and feel better, it is definitely worth the cost of borrowing.

3. Education

Many people today choose to learn what they need to improve their chances of a better job or a successful business. That doesn’t always mean attending classes at a traditional educational institution, but that may exclude them from student loan funding. However, personal loans can help.

Why It Makes Sense to Use a Loan

  • Investing in your future – Gaining skills can significantly improve your chances of earning more and being happier in your future.
  • Work while learning – You can repay your loan over time while still earning an income.

4. Buying a Car

When you want to buy a car, your first thought may be that you need an auto loan. While this is certainly a possibility, it isn’t your only one. A personal loan may actually be a better option in some cases. Here’s why.

Why It Makes Sense to Use a Loan

  1. No down payment – Lenders want a deposit when you apply for an auto loan. You do not need a deposit when you apply for a person loan.
  2. No lien – An auto loan includes a lien against the title. A personal loan doesn’t. Sell your vehicle at any time. You own it outright.
  3. Credit building – Taking out a personal loan is one of the best ways to build your credit. A good lender reports your timely payments to the credit reporting agencies, building your credit history. If this is your first loan, you also improve your credit mix which also bolsters your credit scores.

5. Starting a Business

It’s not surprising that many people are discouraged when they try to get a business loan. A loan through a traditional lender usually requires a business credit score, annual revenue, an income statement, and sometimes collateral too.

Luckily, this isn’t the case when you use a personal loan to finance a side hustle or small business.

Why It Makes Sense to Use a Loan

  • Fewer requirements – A personal loan relies on your personal finances. Some lenders grant personal loans to those with less than perfect credit too.
  • Fast money for upfront expenses – Your loan provides money for equipment, advertising, supplies, and other things you need to immediately start earning money. You can usually get your money much faster than through a bank or credit union too.
  • Great ROI – A personal loan can fund business growth to offset the cost of borrowing.
  • Increases ability to scale up quickly – Revenue generated from funds can be used to create growth opportunities.

6. Home Improvements and Renovations

Home improvements and renovations are another good use of loan money. This work can be costly, but borrowing is worthwhile for these reasons.

Why It Makes Sense to Use a Loan

  • Increased property value – The cost of renovation or repairs is usually recouped when the property is sold or rented.
  • Great ROI on certain changes – Some renovations can earn you a lot of money which can potentially reduce or eliminate the amount you borrow.
  • Flexible repayment options – A good personal loan allows you to pay more than your scheduled payments, without penalty. This makes a personal loan a very flexible financing choice.
  • Enhanced quality of life – Home upgrades make it nicer to live in your home.
  • Quicker sale – Good home repairs or improvements make it more likely you can sell your home quickly, if you ever decide to do so.

7. Weddings

Undoubtedly, you want your wedding to be a memorable experience. However, it can be easy to overspend since everything costs so much. Luckily, taking out a loan can help in many ways.

Why It Makes Sense to Use a Loan

  • Spread out significant costs – Any wedding, but especially large ones involve significant upfront costs such as paying for the venue, photographer, attire, catering, entertainment, and honeymoon. A personal loan makes these expenses more manageable by spreading them out over time.
  • Budget-friendly – Taking out a personal loan and only spending the loan amount makes it less likely you’ll overspend.
  • More affordable than credit cards – Slapping items on your credit card is a good way to rack up high-interest debt, since interest compounds on the unpaid balance. A personal loan will probably have a much lower interest rate than your credit cards and interest does not accumulate on the balance.

8. High-Value Assets

If you want to buy high-value assets that can increase in value over time, avoid putting them on a credit card. A personal loan can work better in many ways.

Why It Makes Sense to Use a Loan

  • Fixed interest rate – Credit card interest rates can change, depending on what happens with the prime rate. Most personal loans offer the same rate and payments throughout the loan term.
  • Simple interest – A good personal loan uses simple interest. It is divided equally between payments and interest does not build on the remaining balance.
  • Invest without using your personal savings – Those interested in investing can buy rare watches, jewelry, stocks and bonds, or art without depleting their bank accounts.

What You Should Consider Before You Borrow

Of course, there are factors you should consider before you decide to borrow. These include:

  • Interest rate – Watch out for retailer introductory interest rates that increase substantially later in the loan term. When looking for a loan through a lender, shop around for the best rate through a broker that uses a pre-approval process. It does not affect your credit score.
  • Fees – Always check the fine print for pre-payment penalties and origination fees. A good lender offer a “open” loan which allows you to pay more at any time. Don’t pay an origination fee for setting up your account either. Many lenders offer fee-free loans.
  • Debt load –Always consider whether the item is necessary before you borrow. Fortunately, Experian data shows US consumers are more aware than ever that debt can be a problem and are only borrowing when it makes sense.

FlexMoney Offers Loan Support for Major Purchases

Loans can be a strategic tool you can use to make major purchases when you can’t or don’t want to use your own money. Providing you understand the long-term financial implications of borrowing, a loan offers immediate access to cash and financial flexibility.

If you’re looking for a loan for a major purchase, FlexMoney USA can help. We offer installment loans with instant approval from a network of reputable U.S. lenders. Loans range between $200 and $35,000. The process is easy and safe and the best way to check what’s available to you in minutes, without lowering your credit scores.

Complete one application form and we’ll find the most suitable lenders for your needs. They’ll connect with you and show you what they have to offer. Compare interest rates and terms to find the best online loans available to you in just a few minutes. Apply today.