As much as you can plan, life has unexpected twists and turns, making you need a decent amount of money as soon as possible. Not having access to this cash will make you realize how hard it is to get it. Besides, you may not have a favorable credit score, plus the ratio of your income to debt may not qualify you for a loan within a short period. Such a scenario will open you up to learn some of the choices Americans are using it to overcome similar situations. One of the alternate options is taking personal loans, which can either have a surety or none. Hard money loans, as those at, are one type that you require a surety. Always evaluate your financial situation to avoid getting into unnecessary debt. That said, taking a loan can enable you not to miss out on a lucrative deal and also make a large purchase, for example, a home. In this article, we expound on three good reasons you can use a personal loan.

Three ways on how to make use of a personal loan:

1. Merging your debts


Applying for a loan instead of paying several loans or credit cards enables you to clear your debts without feeling overburdened. While credit cards have a higher interest, paying them off through a personal loan with a lower interest rate is an added advantage on your side. You will not only reduce the amount you pay but the time taken as well. Merging debts is mostly beneficial to people owing to various lenders.

2. Cost of relocating


If you are relocating to a nearby city, you may not need a personal loan. However, the longer the distance you are moving to, the more expenses you will incur. Hence, you may opt to take a loan to transport your belongings, furnish the house you are moving to, and meet any additional expenses.

However, ensure you will be able to pay off the loan to avoid adding the pressure of changing houses. People who are looking forward to an increased income in their new and far-off location are most suitable in using this method to utilize their loan.

3. Giving your home a new look


Home improvement, such as remodeling your bathroom and kitchen, installing solar panels, and a swimming pool can be costly, and you may not have the money upfront to do it. Getting a personal loan to cover these expenses would come in handy. Compared to various products under home equity, getting a personal loan does not require you to put up your home as a surety. Hence, the risk is minimized.

The above methods for making use of personal loans come in handy when your credit score is notable. What about people whose credit score is wanting?

Understanding loans that need a surety

A hard money loan is an established line of credit that is supported by a pledge. In most cases, this pledge is an asset that the borrower can forfeit if they do not honor their part of the agreement. Essentially, the lender agrees to lend the borrower a certain amount of money with a deal that if the loan is not paid fully and a good time, they can access the asset’s title. Hence, sell and be able to get what the borrower owes them.

The following case in point gives a straightforward scenario. If a borrower gets $20,000 then offers an asset worth $25,000 as surety, the lender receives a considerable amount of profit if the loan defaults. However, this is not the moneylender’s aim because the laws and duration to get access to the asset can be immense eventually. Even so, the surety enables the lender to tolerate any borrower’s low credit score.

Do you need a loan?


Considering you will need to put up an asset as surety, make sure it is the last remaining alternative to meet your financial emergency. Loans are the last resort if all other ways fail. If you don’t access the money, you may go bankrupt or miss out on a lucrative deal.


One outstanding quality of loans is that they permit individuals without an impressive financial history to access finances quickly. Depending on the money they borrow and the surety given, borrowers in the following categories:

  • They have outstanding debts in the payment of their mortgage and other obligations.
  • They have faced bankruptcy or are about to lose their home.
  • What they earn is not clear. Such a scenario comes into play if the borrower is a solo entrepreneur.

The other advantage of loans is they take a shorter time for the lender to approve. Once all the documentation, including the surety titles, are approved, the money is released quickly.



Even though hard money loans seem to be a considerable route to take, borrowers should also appreciate its cons. Their interest rates can be 10% higher than the regular ones. Besides, these rates are not a one size fit all. Each client gets a different rate from the next one.

It may seem getting a loan is popular with most people. However, this is not the case. The largest number of people who use surety loans are renovators, house-flippers, and real estate agents. They take these loans with a plan to either resell a property or refinance to get another type of loan in the future.

A borrower should be ready to give a down payment of around 35% while the loan is at a maximum of 65% of the asset’s value. Following are the steps to take:

First, do thorough online research on the best companies and investors who can loan you and also go through their client’s reviews. Compare the different rates they are offering and decide on what suits you best.

Secondly, have a professional in the finance field go through any document required to sign.

Finally, though it may be an emergency, do not settle on the first lender you come upon and do not show you are pressed for money. Give yourself time to get the best deal.