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Who Uses Personal Loans?

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Some people assume that applying for a loan means you are in a bad financial situation. However, most borrowers have a history of responsible and healthy financial habits.

At Discover, we want to take the taboo out of personal loans, so people can get the right financial product for their situation. So, who uses personal loans? Let’s take a look.

Responsible Debt Managers

One of the most common uses for personal loans is debt consolidation. You can have a good credit score and still have debt. Debt consolidation allows you to combine all of those separate debts (credit cards, department store cards, etc.) into one monthly payment – usually at a lower interest rate, which saves you money. It’s convenient, sure, but it’s also a responsible and effective strategy for people looking to better their personal financial situation and eliminate higher-interest debt.

Couples Getting Married

Weddings are increasingly expensive. But for some couples, the big day deserves the full treatment: the dream venue, an extensive guest list and an unforgettable honeymoon. In this case, a personal loan could be the perfect solution. Many personal loans feature fixed rates and fixed terms so you’ll know exactly how much you’ll be paying per month and exactly when you’ll pay off the loan.

Woman Reviewing Budget And Considering Personal Loans Online


Small and new business owners use personal loans for a variety of reasons. New business owners may need additional cash flow as they start to grow their operations. Small business owners may use a personal loan to invest in new equipment or cover unexpected operating expenses or emergencies. While there are loans available specifically for businesses, personal loans may offer more flexible options for smaller expenses.

Adventure Seekers

Another common borrower is the wanderer. Those consumed with wanderlust use personal loans to take care of travel expenses during their trip. Whether it’s used for air travel, lodging or entertainment, a personal loan can transform a vacation into a once-in-a-lifetime experience.

People on the Move

You never know where the next opportunity in life will pop up. Getting a new job in a different location can be expensive, especially if there’s lag time before starting your new job. Personal loans can be a great financial solution for these exciting, but stressful, times. A personal loan could help rent a moving truck and cover moving expenses, which can be costly if your company doesn’t offer a relocation stipend.

A personal loan can be an ideal solution for a variety of situations. Loan applicants with good credit could find that a personal loan best fits their personal financial needs. If you’re ready to take control of your financial situation, contact a Discover loan specialist today at 1-866-248-1255.


Who Uses Personal Loans?