8 unconventional uses of personal loans

8 unconventional uses of personal loans

Have you always dreamed of having the lifestyle of the rich and famous? Want the lavish swimming pool, the classic car, and your very own racehorse, but you are stuck in the life of a mid-class employee?

The good news for you is that modern financial product can help you live your rock-star lifestyle financed by your job and excellent credit score. There are numerous opportunities right now to get a personal loan for just about everything. Here is a list of the best uses for borrowing money from Lightstream.

  1. Medical & dental

High-quality medical care is expensive and more delicate or elective procedures, which are not listed as relevant to the medical insurance system are not usually covered. This leaves patients in the position to pay bills of thousands of dollars for a wide range of conditions, from chronical diseases to cosmetic and plastic surgery. Dental work represents some of the most expensive procedures, usually not covered by insurance. With an APR of 5.49%-15.44%, a personal loan is a far better option than paying with your credit card, since almost certainly the interest will be lower.

  1. Auto

Although you can take a personal loan to buy any type of car or to refinance an existing loan, it is interesting to learn about the specific opportunity that you can get to buy a classic vehicle with a personal loan. Some lenders can give you up to $100,000 with an APR around 3-7%, which sounds like a bargain. The low rate is justified by the fact the investment is almost safe, even if the purchased vehicle does not act as collateral.

  1. Aircrafts & boats

You could even get your own motorboat or even small plane. A personal loan could be your ticket to get these high-end items for a fixed monthly installment. You can also go a step further and list any dream you might have. Go a bit wild, think about that yacht club, time-sharing an expensive mansion by the seaside or even a retreat in the jungle. The sky is the limit for how you can spend the money and at an APR starting at 6% going up to 15%, you can get the life of the millionaires for an interest rate that is less than what you pay for your groceries.

  1. Wedding & jewelry financing

If you want to feel like royalty on your big day, or you would love to make this dream come true for someone else, there is the opportunity to use a personal loan to pay for the entire affair. Also, you can take specific loans just for jewelry such as an engagement ring or a present from the parents to the bride. You can expect rates as high as 15% in the worst-case scenario, although most would be around 10%. The best news is that your valuable purchase does not act as collateral, so you don’t risk losing an item with sentimental value.

  1. Horse & horse trailers

Indeed not the first item on a shopping list, a horse and the related equipment such as tools and even a trailer can represent a hobby, a pet for the children or a way to take part in derbies. It goes without saying that you only get into this kind of purchase if you can afford all the connected expenses such as vet, grooming, training, and insurance. Yet, considering it is part of your millionaire dream or you just love these majestic animals, you can get the best deal if you keep your purchase between $10,000-50,000, in which case you can hope for an APR starting at 5.49%.

  1. Swimming pool

If you had been diligent with your money, you deserve a little bit of spoiling yourself and your family, and a pool brings into a home that vibe of upper-class. Taking a loan to make that happen could even teach your children about the importance of paying your bills on time and getting a high credit score. Use this home upgrade as a lesson about the importance of small right choices.

  1. Landscaping

Not only a swimming pool can make a statement not to mention it is not an appropriate improvement for all regions and climates. Sometimes a little gardening can take your home from average to catalog status. Not a necessary expense, but something to indulge in after you have paid your student loans, are comfortable with your mortgage and don’t feel like traveling, but building your nest. Choose a reasonable repayment term and get your fantasy to work for an APR which starts at 5%.

  1. The best education for your juniors

Although educational loans for college tutoring are a separate product, there are options for pre-college students. If you want to send your offspring to a pretentious private school or just want to upgrade their skills in a particular area, like a foreign language, you shouldn’t worry about money. Since this is an investment with a much larger time frame to actually see the result, the APR is slightly higher than for other products, the average values being in the range 10-16%, yet this is still comfortably below a credit card purchase.  

This list just wanted to give you an idea about how you can emulate the lifestyle of the rich while being a mid-class employee. Of course, conditions apply, and such extravagances are reserved to those with an excellent credit score and a solid history. Even better, once you had been approved for a loan, if you don’t exceed the debt ratio you can take another one after six months and check another item off the bucket list.


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