Although a personal loan is frequently used to cover emergencies or pay down debt, those aren’t the only things it can be used for.
In fact, you can use a personal loan for just about any important expense. That’s one of the great things about a personal loan: unlike a car loan or a mortgage, which can only be used for specific purchases, a personal loan can be used for almost anything.
Here are some creative ways to use a personal loan:
1. Plan A Dream Wedding
Your wedding day will be one of the most important days of your life, but the expenses add up quickly. From finding the perfect venue to hiring the best photographers and entertainers to choosing menu options that meet everyone’s needs, not to mention hair, makeup, and clothing, there’s a lot to pay for.
According to a study by Wedding Wire, the average wedding in Canada costs around $21,900 US (around $29,500 CA).
Those payments add up, and you might not have enough in your savings to pay for everything you want to make your wedding day spectacular. A personal loan can make it so a limited budget isn’t restricting your options.
Additionally, you may suddenly face an unexpected last-minute expense related to your wedding. A personal loan can help you pay for those urgent situations so that you can breathe easy on your big day.
2. Renovate Your Home
Whether you need to make critical structural upgrades to your home or just want to make it more comfortable and livable, renovating your home can be expensive. You don’t want to get half-way through the project only to discover you can’t afford to finish the work.
A personal loan gives you up to $15,000 to put toward your home renovations. So whether you need the full amount up front or run into unexpected cost overruns part-way through, a personal loan can help ensure the project is completed.
3. Start Your Business
If you’re a new entrepreneur or you don’t have the best credit, it can be difficult to convince banks and other financial institutions to give you a business loan. That’s where a personal loan can help you. You can use the money from your personal loan, which gives you up to $15,000, to make business purchases.
If you need a new computer and office set-up to get going, for example, you don’t have to worry about having perfect credit or being approved for a business loan just so you can start your business.
Because personal loan applications are often processed quickly, you can apply for the funds to start your business and have the money you need within a business day. You don’t have to wait weeks to get started.
4. See The World
Now that travel is a viable option again, it’s understandable if you want to plan your dream vacation. Travel can get expensive, however.
You have to consider the cost of transportation to and from your destination, getting around to the different locations, and paying for hotels or other lodging, food, and entertainment costs.
Even if you’ve budgeted and saved for the trip, you might suddenly find yourself in need of money. A personal loan can get you quick access to cash for urgent travel expenses.
The Bottom Line
The money you obtain through a personal loan can be used for almost anything you need, from planning your dream wedding to starting a business to seeing the world.
