Father and daughter shopping at applicance store for a new dishwasher using funds from a personal loan
Loans, Money Management, Article

Personal Loans: Funds for Almost Anything

When applied and approved for, personal loans are given as a lump-sum of money. Personal loans are a form of unsecured debt, which means they don’t require a down payment since they are not backed by collateral or a specific asset, like a home or car. The funds are deposited straight into your account and free to use as you’d like! Here are some common examples of how you can use a personal loan.

Debt Consolidation

Debt consolidation is one of the top reasons people take out a personal loan. It helps you roll over debt from high-interest credit cards, of which rates typically start much higher than personal loans. According to Bankrate, the average credit card rate at the end of 2023 was 20.74%, whereas the average personal loan rate was 12.2% as of May 1, 2024. Not only can you benefit from lower interest, you can also cut down from multiple payments to just one.

Large Expenditures

Sometimes there are high-expense events or items that we can’t afford to pay for all at once. A personal loan comes in handy for wedding expenses, which may include the venue or vendors, rings, the bridal gown and groom’s tux, or the honeymoon. It doesn’t need to be a wedding, though. A personal loan can be used for any vacation or other special event. Or, maybe it’s time to upgrade some of your home appliances, like the stove or dryer.

Holiday Shopping

A personal loan may be a good option when you need to make many purchases in a short time frame. It can provide a lower interest rate than credit cards if you believe it’ll take you more than a month to pay off.


If you run into unexpected expenses, a personal loan can stretch your funds when you’re in a bind. Some of the most expensive unexpected bills include medical and vet bills. Personal loan funds can also be used to cover car or home repairs, or funeral expenses in the event of loss of a loved one.

When NOT to Use a Personal Loan

A personal loan is a great, low-interest option for many things, but there are some cases when it’s not the best option. If you’re purchasing a car or need student loans, it’s best to get a specialty loan for those because the interest rates are usually even lower.

Check out our personal loans page for more information. Still have questions? Orange County’s Credit Union is ready to help! Give us a call at (888) 354-6228. If you’re ready to apply for a personal loan, click the button below.

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