By Sabrina Loh
Life happens and sometimes, you may find yourself in a situation where you require some extra money. Instead of borrowing from friends and family, which we all know can get ugly quickly, it may be a better idea to take sole responsibility of your financial situation.
This is when you should consider taking a personal loan.
Personal loans can be used for just about anything. When used smartly, it can be used to improve your credit score, enrich the quality of your life, and serve as a backup plan when an emergency pops up.
Here are 12 things you didn’t know you could do with a personal loan:
If you have multiple credit card debts, you’re likely paying interest on all of them separately. Taking out a personal loan can help you to pay off all these debts in a single payment, get a better interest rate, and increase your credit score.
Spruce up your home
Home upgrades and renovations are often expensive, but a personal loan can be used to finance this, such as purchasing new furniture, remodelling your kitchen, fixing the plumbing, or upgrading your bathroom.
Making repairs and upgrades to your home can be a good investment to maintain or increase the value of your property, and to create a comfortable living space for you and your family.
Pay medical bills
If you or a loved one requires medical care, securing money right away can be extremely challenging. A personal loan can help you to borrow enough money to pay for these medical expenses, often at a lower interest than a credit card.
If your car breaks down or you need emergency funding quickly, a personal loan can see you through when your emergency fund has run dry.
Pay for wedding
The average cost of a wedding in Malaysia is RM50,0000, and can easily go up to RM200,000! With so many factors to consider, like your photographer, caterer, venue, musicians, and attire, it may be difficult for a couple to pay all of it out of pocket.
While you should still try to save as much money as you can for it first, using a personal loan can be one way to cover the rest, instead of using multiple high-interest credit cards.
On the flip side, divorce can also be wildly expensive. If you don’t have enough to cover the lawyer fees and court costs, a personal loan can come in handy.
Travelling is wonderful and it’s always best to save for a trip first. But if there’s a once-in-a-lifetime experience that you just can’t miss, a personal loan can help you finance it. Just keep in mind that you’ll be paying interest after your vacation is over.
Depending on your religion, funeral costs in Malaysia can range from RM10,000 to RM35,000. That’s a lot for any family to bear. A personal loan can help you to fund your loved one’s funeral and put them to rest.
Moving can be expensive, especially a long-distance move and if you have a lot of stuff. If you can’t do it yourself or assemble a group of awesome friends to pitch in, a personal loan can come to the rescue.
It can also be used to help you purchase furniture and appliances like a washing machine, which could save you money in the long run, since you can avoid using laundromats and other short-term expensive alternatives.
Paying for a down payment
Coming up with the 10% (sometimes more!) down payment for a home can be daunting and feel so out of reach. You should use your savings, but a personal loan is one way to secure the balance if you’re a little short, so you can secure your dream home.
Start a company
It’s never too late to become an entrepreneur. If finance is what’s holding you back, a personal loan can help you to get started by funding your tools, equipment, certifications, and more.
Personal loans aren’t just used to purchase physical items. You can also use it to invest in yourself, such as by taking a professional course or undergoing boot camp to qualify for a raise.
BigPay Personal Loans
As part of our mission to make banking accessible for everyone, we’ve launched Malaysia’s first 100% digital loan, which eliminates the hassle of applying for traditional personal loans.
No need to wait in line at the bank with confusing documentation. Just download our app and click apply to get your loan disbursed to your BigPay app in as little as 5 minutes.
We promise you’ll love it.
Learn more about it here.
Tune into our BigPay blog every week to improve your financial knowledge.