Ahead of your next big-ticket expense, it may be time to reconsider the personal loan.
Personal loans have increasingly become an attractive option for borrowers with good credit. During the first three quarters of 2015, lenders issued $30.24 billion in personal loans to borrowers with prime and near-prime credit scores, up 67 percent from the same period in 2013, according to an April analysis from credit-reporting company TransUnion. A June survey from Discover Personal Loans estimated that 60 percent of personal loan borrowers had good or excellent financial health.
Borrowers are using the loans for a multitude of reasons. Discover found that a third expected to use a personal loan to buy a car, and 17 percent for medical expenses. Another 11 percent used the funds to consolidate other debts.
"Depending on how much you need and when you need it, taking a personal loan may be advantageous," said Greg McBride, senior analyst for Bankrate.com. "You want to cast a wide net and know what all your options are."