More than 20 million consumers have a personal loan, with an average balance of $6,382, according to TransUnion. In fact, personal loans are the fastest-growing type of consumer debt. The most popular reason to get a personal loan is debt consolidation, but it can be used for everything from unexpected expenses to college tuition or home repairs.
If you’ve ever thought of applying for a personal loan, it can help to know the ins and outs of this form of financing.
What is a personal loan?
Personal loans are installment loans that provide a lump sum that you pay back with interest in set monthly installments over the term of the loan. Once the loan is paid in full, it is closed. If you need more money later, you have to apply for a new loan. Personal loans can be