Personal loans are a flexible solution when you need money for just about anything. But just because you can use a personal loan for a new TV or luxury vacation, it doesn’t mean it’s a good idea. So how do you best use a loan that’s practically a blank check?
Funds from a personal loan are distributed in a lump sum to the borrower. The amount is then paid back with interest over the course of the loan term. That makes personal loans better for some uses than others:
Personal loans can be a great way to get cash when you need it, but they do have their drawbacks:
This article is for informational purposes only. It is not intended to serve as legal, financial, investment or tax advice or indicate that a specific DCU product or service is right for you. For specific advice about your unique circumstances, you may wish to consult a financial professional.