When does it make sense to get a loan?

Few of us go through life without ever applying for loans or borrowing money. Borrowing and repaying money can help you establish a 信用记录 that can make it easier to get financing when you need it. But it's important to use credit responsibly so it can benefit your finances, rather than harm them.

贷款类型

T在这里 are different types of loans and for specific purposes. Secured loans require a collateral and unsecured loans do not require collateral. Usually, secured loans have a lower interest rate than unsecured loans. This is because the financing institution will be taking a lower risk when lending you money, because they can take possession of the collateral in the case the person defaults on payments.

Here are the most common types of loans:

• 个人贷款. These loans may have higher interest rates when compared with other loan types since they are unsecured. You can use the money for a wide range of purposes, from completing home improvements to enjoying a vacation.
• 汽车贷款. These loans are secured and will use the financed 车辆 as collateral. 取决于 car you are purchasing, they may offer low interest fixed rates and, 在某些情况下, even zero percent interest.
• 抵押贷款. These are another type of secured loan, and your home will be the collateral. 取决于 按揭类型 you apply for, you may have different terms, length and types of rates (variable or fixed).
• 学生贷款. These are designed to help students 支付大学学费. In many cases, the loans are offered by the government and may have reasonable interest rates. 取决于 loan you take, you may begin paying it back after you graduate. It can also be beneficial to look at other options to help 支付大学学费 like scholarships and grants.
• 债务合并贷款. Designed to lower the overall interest rate and consolidate your credit card debt into a single payment, these loans can assist you in organizing and managing your credit obligations.
• 房屋净值贷款. These include loans and lines of credit (HELOC). They are secured, with the equity of your home serving as collateral. 一般ly, this loan or credit is used for major home improvements or other 大的购买. It’s important to note that if you default in your payments, you could potentially lose your house. The loans usually have a fixed interest rate, while the line of credit will have variable rates. Consider using our 计算器 to help determine how long it will take to pay off a HELOC.
• 发薪日贷款. These loan types generally come with very high interest rates and need to be paid in full on your next payday. People may get them for an emergency, but they should be used with extreme caution as they can lead to a cycle of debt if not managed properly.

Reasons to take out a loan

• 你要买房子. To make a home purchase, most buyers need a mortgage loan. This type of financing is often considered good debt because a home is an investment that's anticipated to increase in value over time. 需要注意? Look at your entire financial picture and 预算 before taking on a 房屋贷款，并确保你 买房 你真的可以负担得起.
• You're adding to your education. If you're going to college, finishing up an advanced degree or need additional training to move ahead in your career, 取出一个 学生贷款 可以是一种选择. Shop around for the most favorable rates and repayment plan. Consider starting with federal loan options first, and then move to private options.
• You're setting up a household. You'll need some basics to begin with, such as a bed or a refrigerator. 必不可少的家用电器 and furniture can often be purchased through installment financing from the store, 但是不要过度. Not everything in your first place needs to be new. 旧货店, yard sales and family members can be good sources of basic furnishings that tide you over until you can afford the items you want.
• You're consolidating debt. 如果你有几个 信用卡 高利率, it might make sense to get a loan to achieve a lower overall interest rate and smaller payments. 整合 可能是一种选择. 但是请注意: Put those cards away once you leverage the loan to pay them off. Don't rack up new charges as you're paying off the 合并贷款.

避免贷款的原因

• You want to buy extravagant holiday gifts. It's not a good idea to borrow money, either through a loan or on your credit card, to spend above your means. Instead, try to choose meaningful, less expensive ways to remember others during the holidays. 也许是创造一个 假期预算 will be helpful for future holidays.
• You'd like a nice wedding. Taking out a loan for a ceremony and reception that you can't afford could start your marriage out with debt. Scale back your plans to fit your 预算, find creative ways to save money through the planning process and focus more on enjoying the special day.
• 你需要休假. Travel typically costs more than you think it will, and if you have to take a loan simply to go on the trip, you're better off finding more 负担得起的方式 放松和充电.

Other loan considerations

• Borrow only what you need. While it's tempting to borrow more, you'll end up having more to pay back and risk undermining your 预算.
• Shop around for good rates. Compare interest rates and payment terms. 如果你有一个好的 信用评分, you may be able to negotiate a better offer.
• Pay off credit card balances every month. Carrying a balance means you'll pay more for every purchase you make, in the form of 利息费用 关于金额.
• 考虑检查你的 信用报告 一年三次. Pull one report every four months from one of the three credit bureaus at annualcreditreport.com to confirm everything on your report is correct and accurate.

Now that you have learned information about loans, you may want to use the following 计算器s to help you understand potential payment amounts if you decide to get one.

• 一般 贷款计算器
• 汽车贷款 比较计算器
• Home equity line of credit 计算器