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7 reasons to apply for a personal loan

by Uneeb Khan
personal loan

There are some situations where we really have good reasons to take out a loan. Of course, always thinking in a planned way, the search for credit can be really beneficial in several situations.

Even the demand for personal loans has grown in recent years. But it’s always important to remember that this decision must be very well thought out so that you don’t get lost in the middle of debt.

If you want to know the top 7 reasons to take out a loan, follow along!

7 reasons to apply for a personal loan

Let’s cite some of the most important reasons for those who want to apply for a personal loan.

Swap the debt

This is one of the main reasons for borrowing.

This is because we are often sinking into debt with very high interest rates and with no prospect of being able to pay all the installments. When it seems that nothing else will be able to solve it, we have the option of taking out a new loan with rates that are more suited to our budget.

Debts like overdraft and credit card debts are practically like snowballs. If you leave a month without paying, they accumulate until they are huge and without the slightest condition to pay off.

Thus, while credit card rates are around 12% per month, you can apply for a personal loan, which can have rates up to 6 times lower, to pay off the debt and have a smaller installment.

You can also opt for credit portability, which is when you exchange a loan to another institution that offers better conditions. This is a right that you are guaranteed by law.

Open your own business

One more of the great reasons to ask for a personal loan, the time to open a new business is certainly when you will need an amount of money that not everyone has saved.

But, just like the opening of the enterprise itself , asking for a personal loan at that time must be a very well thought out and planned attitude so that you don’t start your business already broke.

This is also true if you already have a company and need to invest in it. Planning and organization are key!

Unforeseen circumstances

As the name implies, unforeseen events are impossible to predict. So if you don’t have an emergency reserve , you have nothing to do but take out a personal loan.

Being that, unforeseen events we can consider as: accidents, a pipe that burst in your house or some health problem that did not exist before. On these occasions, there is not much to do and the personal loan can be a great way out.

However, it is very important to know how to differentiate the unforeseen from the bills that come “out of nowhere” but that you knew very well that they would arrive, such as IPVA , IPTU , school supplies , among others. Know how to differentiate what are the real reasons for taking a credit and those bills that you need to program every year to pay.

After all, if you are going to take out a loan for all your occasional expenses, there will come a time when you will no longer be able to pay them. Therefore, attention and discipline are fundamental!


If you need to buy a good and the installment has higher interest rates than the personal loan, it is worth requesting the credit to make the purchase in cash and at a discount .

Normally, these purchases are for goods with a higher added value, such as a new car or real estate . This is because there are several types of loan on the market with attractive interest rates that are more worthwhile than paying for a loan .

But always look for it! Take a good look at whether the fees and other charges really pay off when making a cash purchase.


A great opportunity has come up to study at that dreamed university, or even abroad, but you don’t have money saved? In that case the loan can become an investment !

After all, education is always positive and the chances of you being better able to pay your bills with a good education grow a lot.

Many institutions have specific lines of credit for those who need to finance their studies or you can opt for a personal loan that has a good rate. Research and decide which is the best choice.


When it comes to building and renovating, it may be worth buying all the building materials in just one go and paying the amount in installments through a personal loan. That’s because, you can get a good discount if you pay a large amount of products in cash.

Just like student loans , there are also exclusive loan modalities for those who want to build or renovate. Including, many stores offer this type of installment.

In this way, whether it is a planned renovation or something you need to do urgently, the personal loan can be a good way to handle a larger volume of payments.

Fulfill dreams

Have you always wanted to visit another country, or is your dream car on sale at the store, but you don’t have any cash? How about opting for a personal loan?

It may seem silly to some people, but dreams come true are also part of our lives and are great motivators for everyday life.

Therefore, if it is done in a very planned way so as not to compromise your budget, taking a loan to make your dreams come true can be a good option.

If you’ve decided it’s time and chosen one of the reasons for taking out a loan !

Here you will find the best personal credit options in one place, with installments and rates that fit in your pocket.

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