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When Do You Need a Personal Loan?

Darah Albesa
When Do You Need a Personal Loan?

When Do You Need a Personal Loan?

If you lack funds and need to borrow from a New Zealand lender, apply for a personal loan. A personal loan grants you a one-time cash loan with long-term, monthly payment terms. Additionally, to qualify for a personal loan, you must have a good credit score and a reliable source of income.

Applying for a personal loan indeed has a lot of benefits. However, keep in mind that this convenience comes with a fair responsibility. 

Personal loans have higher interest rates than other types of borrowing. Being a responsible borrower will help you avoid hefty late fees and help you clear your debt hassle-free. Most importantly, only apply for a loan if you need it.

When to Borrow from a Personal Loan Company

Only apply for a personal loan from a local lender or banking institution if you need the money. Here are some situations where a personal loan can come in handy.


If your home is overdue for repair and maintenance.

Are you living in an old house showing signs of structural deterioration? Does your home need an emergency foundation repair or a plumbing overhaul? Then you should apply for that loan today! 

Home repairs and maintenance can save you more money in the long run. Ignoring these issues will almost always lead to costly repairs. These issues could also compromise the health and safety of your household.


If you need cash to cover emergency health issues.

Personal loans can help you cover emergency medical and other hospitalisation expenses. Borrowing money from a lander is a sound decision, especially if you don’t have a rainy-day fund. As an emergency fund source, this loan type can be processed fast and has a high chance of approval.

A personal loan can also be a safety net to help you recover from a disaster, especially those that leave you financially damaged.

If you want to buy a vehicle for leisure or work.

You may be new to a city and need a vehicle to help you get around for work or leisure. If you have a stable job that generates a regular monthly income and a decent credit rating? A personal loan could be your answer.

Personal loans can provide the funds for a car down payment or upfront payment if you’re buying a used vehicle


If you’re going to a once-in-a-lifetime holiday trip.

Another advantage you can get from personal loans is they allow you to take a once-in-a-lifetime trip. Just like using the fund to buy a vehicle, ensure you’re also financially capable of paying your debt.


If you want to consolidate your debts into one loan.

If you have outstanding credit card balances and current debts from multiple lenders, why not take a personal loan and use the funds to pay it off? 

A single loan with a single interest rate, pay period, and due date can relieve the stress of processing multiple loans. 

These are some instances where you could consider a personal loan from a lender. Whether from a banking institution or an NZ online loan provider, remember to be a responsible borrower and reap the rewards of this convenient loan type!

Darah Albesa
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