Popular Personal Loan Uses
A personal loan can help you achieve your financial goals. Whether it’s to take back control of your ﬁnances by consolidating debt or achieving your vision for home improvement.
Wondering how you could use a personal loan? We share three ways in our latest post. We’ll also touch on the difference between a secured personal loan and an unsecured personal loan.
Making home improvements
Home is definitely where the heart is and that also means it is important not to put off updating the spaces that need it. Any time is a great time to refresh your home and make improvements to those rooms that no longer suit your needs. If you’ve got an outdated kitchen, or a drab and dreary bathroom, a personal loan can help you fund the costs of renovating these spaces.
If you can see yourself working from home long term, properly fitting out a study or home office may be a great idea to create a productive environment. If you’re not quite ready to begin knocking down walls, purchasing new furniture can lift a room and give it a contemporary and refreshed feel.
Having multiple loans, credit cards and store cards makes managing repayments tricky. Instead of paying off multiple debts at high rates of interest, you may want to consider a personal loan for consolidating debt. This is where all of your debts are brought together into one loan.
When you consolidate your debts, you have one loan and one repayment instead of multiple repayments that may seem overwhelming. Using a personal loan to consolidate debt helps you better manage repayments more effectively. It also allows you to budget and save more effectively. Read more about debt consolidation.
Purchasing new appliances
If you’re in a situation where you need to suddenly buy a new washing machine (or other appliance) but don’t have the funds available, a personal loan can help. We can generally provide an answer on a loan application within one business day, so you won’t be left high and dry.
With a personal loan, you can purchase major household appliances and electronics immediately, rather than waiting months to save up for them. Be wary of quick finance approvals from small lenders that offer interest free loans or other incentives that seem too good to be true. You could find yourself in more debt which will adversely affect your credit score if you’re unable to repay.
Whatever you're planning to do, a personal loan from Horizon Bank could be the perfect way to make things happen.
To ﬁnd out more about our different personal loan options, get in touch with one of our local branches today and see if there's one that's the right ﬁt for you.
How Personal Loans Work
If you’re ready to update your kitchen, bathroom or refresh another part of your home, you can easily apply online here. Remember, personal loans are also a great way to consolidate debt. If you have many store cards, credit cards and other personal loans at other financial institutions, consolidating them into one easily manageable loan may be in your best interest. Send us an enquiry and a lender will be in touch to discuss your personal circumstances and current loan rates.
Like any loan, when you apply for a personal loan you’ll be assessed against eligibility criteria to ensure you can meet your loan repayments. Once your personal loan has been approved, you've accepted the offer, and all loan conditions have been satisfied, your loan account will appear in your Online Banking.
Once the loan is funded and appears in your Online Banking, you’ll see when the first repayment is due. You can make payments weekly, fortnightly or monthly. Making repayments line up with when you receive your pay is a good way to ensure you always meet your repayment obligation.
Secured personal loan options
You can secure your loan with the equity you have in your home, a vehicle or with savings you already have. A secured loan will give you a lower interest rate which means your repayments will be lower as well. You may be able to borrow more because you are using collateral to secure the loan.
If using an asset to secure your loan, there may be value assessments and additional proof and documentation that needs to be organised before your loan is funded.
Keep in mind, that the amount you can borrow may not be one-to-one with your assets value. For example, using a vehicle worth $30,000 as security may not result in a $30,000 loan.
Frequently Asked Questions
What can I use my loan for?
You can use a personal loan for going on holiday, purchasing new furniture or white goods, undergoing home renovations, consolidating debt or any worthwhile purpose.
What documents do I need to apply for a personal loan?
Documents include but are not limited to providing evidence of income, which usually means your most recent pay slips. Proof of identity and citizenship or residency as well as a list of expenses, which can be identified from your statements.
How long does it take to apply and how fast can I get my loan?
Completing a personal loan application online is convenient and easy. Having the right information on hand will help you complete your application quickly. We pride ourselves on giving fast answers on loan applications, so long as all the relevant documentation has been provided and the applicant meets credit criteria.
What will my repayments be?
Your repayment amount will depend on how much you borrow from us, your interest rate, and how often you make repayments. Use our repayment calculator to give you an idea of what the repayments would be. It’s always better to have a chat with an experienced lender who can lead you through the process and answer any questions.
Contact us and one of our lenders will be in touch. Speaking with a lender is the best way to determine the right loan for you.
The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant Product Disclosure Statement and Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.