Lending Club Blog

6 Reasons to Get a Personal Loan

While it would be great if we all had enough money to fund all of life’s expenses without worry, we know that’s not the case. Sometimes we have to borrow a little to keep moving forward, and that’s when a personal loan can be a good solution.Debt Consolidation

What is a personal loan?

A personal loan is a type of loan that involves borrowing a set amount of money and paying the creditor off with interest in a structured payoff schedule. These loans are “unsecured” because you don’t have to put up any collateral (such as your house, car, etc.) to get the loan; instead, lenders use your personal credit and other factors to determine eligibility. The concept is simple and similar to the borrowing you’re used to: you borrow and pay that money back. One of the benefits is that you have more flexibility with what you can use the money for.

Here are 6 situations where a personal loan can help:


  • Debt consolidation
  • Having different amounts of debt with various creditors can be difficult to handle. Each debt will have its own interest rate, monthly payment, and due date. For these reasons among others, borrowers can sometimes find themselves lost in their debts, resulting in missing payments, paying more interest over time due to higher interest rates, and having another thing to worry about. By taking out a personal loan, you can use that money to pay off your various creditors and be left with just one single monthly payment to make. Consolidation can save you time and money and is one the best benefits a personal loan can offer. If you’re curious how much you could potentially be saving, check out our personal loan calculator.


  • Credit card payoff
  • Like debt consolidation, credit card payoff can be a great benefit of a personal loan. You may not have a lot of different sources of debt, but even if you have one credit card debt, it can be worth considering. Credit cards often carry high interest rates that you could potentially avoid by exploring the possibility of a personal loan. Taking out a loan to pay off a credit card can be a smart way to keep a little more of the money you earn for yourself.


  • Home improvement
  • Looking to make some home improvements but don’t want to dip into your savings or take out a home equity loan? Personal loans can be a perfect solution for a home improvement project. There is no equity required to qualify for a personal loan, and you can apply from the comfort of your own home and receive your funds in as little as a week. Taking out a personal loan to make those bathroom renovations, upgrade your kitchen, or add a pool or spa to your backyard can be a great option.


  • Medical expenses
  • Alright, this isn’t an ideal scenario: you’re sick, need to undergo a procedure but realize you don’t quite have the money available to pay for it. This is a situation where taking out a personal loan can prove beneficial, since you can borrow what you need and select a payoff structure that works with your budget.


  • Major purchase
  • Whether you’re making a larger purchase that you’ve deemed necessary or you’re trying to figure out how to pay for a new refrigerator because yours suddenly stopped working, or your latest car issue seems like it’s going to be an expensive one to fix, a personal loan can be a good consideration. Get the money that you need and pay off the balance over a longer period of time.


  • Vacation

Vacation LoanWe all need a break from time to time but we know that a vacation can cost a little more than we’d like to spend at any one time. A personal loan can be a good way to finance your vacation, so that you can pay it off over time. And hey, it could be a good monthly reminder of just how much fun you had.

There are many reasons to take out a personal loan and these are just a few. Each individual’s credit history and financial health will influence the interest rates of a personal loan offered; however, it’s very possible that these rates could help you handle the situations outlined here along with many more.
Go over to our personal loans page or personal loan calculator page to find out more.

Check Your Rate

Friday, July 29th, 2016 at 9:27 am

Comments (0)


5 Ways to Get Your Finances Ready for the Holidays

How to Build a Budget: Part 1

The State of Debt: 2016

Types of Loans 101

See more
Lending Club Awards
  • Archives z

Recent Posts

5 Ways to Get Your Finances Ready for the Holidays

Read More »
December 1, 2016

How to Build a Budget: Part 1

Living on a budget. It can sound scary, right?… Read More »
November 21, 2016

Five Signs Your Business Needs Capital

Knowing when your business needs working capital— and promptly… Read More »
November 10, 2016

How does a car refinance loan work?

Whether your goal is to lower your monthly car… Read More »
November 2, 2016

Are you paying too much for your auto loan?

How refinancing your auto loan with a better rate… Read More »
October 25, 2016

The State of Debt: 2016

Politics can be a divisive topic, where issues and… Read More »
October 24, 2016

Lending Club Teams Up with United MileagePlus® to Offer Customers More

  When it comes to… Read More »
October 21, 2016

Patrick Dunne: A Message to Investors

I wanted to take a moment to introduce myself… Read More »
September 29, 2016

Line of Credit vs. Loan

Lines of credit (LOCs) and small business term loans… Read More »
September 28, 2016

Types of Loans 101

There are many types of loans out there and… Read More »
September 16, 2016


We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014
View All w