From car title loans to online loans to personal loans, loans are incredibly common here in the United States. After all, only around 30% of all American adults have even just $1000 saved for emergency uses, meaning that the vast majority of us do not have large sums of money lying around in just about any capacity. The use of loans can help the average and everyday person to finance larger scale purchases, allowing them to sustain their lifestyle.
For instance, car title loans are incredibly common when it comes to buying a car. Car title loans have become so common, in fact, that more than 100 million people in the United States have some type of auto loan. To further drive home this point, it can be seen that more than $568 billion of car loans are owed all throughout this one country alone, let alone in other places all throughout the world.
It makes sense that car title loans have become so popular here in the United States, as the cost of a brand new car now exceeds $31,000 and is on the rise. While buying a used car is an option, many people don’t feel comfortable driving a car or other such motor vehicle that has been owned before. But buying a brand new car is certainly not within many of our budget – at least not without the help of car title loans and the like. In fact, car title loans are relied upon by nearly half of all car owners (around 44% of them, to be a bit more precise) to buy their car, with the average person taking out car title loans of more than $30,000 – sometimes even considerably more, at that.
But car title loans are certainly not the only popular type of loan here in the United States. In addition to car title loans, personal loans have also become commonplace. The personal loan is ideal for a number of reasons. For one thing, it comes in many different sizes. While personal loans can be as small as a mere $50, they can also go up to a whopping $200,000. On average, how ever, the amount given for a personal loan here in the United States will sit at just about $7,000.
No matter what the amount, personal loans can be used for a wide variety of purposes. For instance, more than 30% (31%, to be a little bit more precise) of all personal loans are taken out for the purposes of vehicle expenses, ranging from regular vehicle maintenance to the need for vehicle repairs. In addition to this, more than a quarter of all personal loans are used for everyday expenses, such as paying bills, rent, and utilities. Finally, just over 20% (one fifth) of all personal loans go towards personal emergencies, such as unexpected medical expenses (among any variety of other things). However, these reasons for taking out a personal loan only represent the top three reasons for doing so – there are infinitely more reasons that people take out personal loans in varying sizes all throughout the United States.
So what should you consider when taking out a loan? Of course, you’ll need to consider your credit rating. As with many things in life, such as renting a property or even renting a car, your credit score matters. If your credit rating is too low, it is unlikely that you’ll be able to get the size of loan that you’re looking for – if you’re able to get a loan at all, that is. Working to get your credit rating up can help you to get the loans that you might need in the future, and it is always something to invest in, to say the least.
Of course, you’ll also want to consider the terms of your loan, as not every loan is created equal. Some loans, for instance, accrue interest as time passes on. Working to pay off such loans as promptly as possible is ideal, or else you’ll wind up owing far more money than you originally owed, something that can make it all the more difficult to pay off the loan.