Personal Tennessee bank loans are an excellent way to help you pay for what you need when you need it. There are three types of personal bank loans, they have secured loans, unsecured loans, and variable rate loans. Secured loans are backed by a type of collateral, while unsecured loans are not secured by collateral. Variable-rate loans, however, have benchmarked interest rates that can fluctuate over time, depending on the overall interest rates in the market.
If you need a little extra cash for a big purchase, here are 10 ways you can use a loan from a Tennessee bank.
Secured Loans in Tennessee
1 – Automobiles
Getting a car is expensive. Few people can afford a new car out of pocket. Therefore, many people choose to take out a loan to help finance their new vehicle. However, one trap you don’t want to fall into is buying a loan from the dealership.
Car dealers are notorious for adding extra fees on top of the loan amount. However, when you work with a local Tennessee bank to purchase an auto loan, you will have access to the best rates without navigating upsells from a car dealership.
Of course, you will need to worry about interest rates, but the more money you put towards your down payment, the less you’ll have to pay back in interest. Which is a much smarter investment than letting your car depreciate in value.
2 – Appliances
Many people who buy personal loans in Tennessee use them to upgrade their household appliances. Usually, unsecured loans are used to purchase appliances. You can either take out a personal loan from your local bank, or you can choose to finance your appliance through the appliance retailer’s loan organization.
If you’re doing a large remodeling project or updating several things in your home, a personal loan can help you establish your budget and check off several points on your checklist.
3 – Home Offices
With more people working from home these days, you might be finding that your home office setup doesn’t have everything you need in order to get your work done. But getting a home office set up put together can be expensive. If your job won’t finance your setup, then you might consider taking out a home improvement loan or a HELOC.
4 – Investments
So you want to start investing, but you need the money to get started. Investment loans can be used to help you buy property, flip homes, or start house hacking. You can also use some of the money to start buying stocks and possibly turn a profit.
5 – Medical and Dental Expenses
This type of loan may be a godsend to you if you’ve recently had a major oral health issue or physical health issue that was not covered by your insurance. Or even if your insurance won’t cover enough of your expenses. As a result, you may take out a loan to help pay for those expenses.
Furthermore, if emergency medical expenses arise, a personal loan can help you pay off medical expenses in a timely manner.
6 – Second Homes
Buying a second home is different from buying another house as an investment property. As such, the loans for second homes will function differently than investment property loans.
When buying a second home, requirements from lenders are higher than requirements for primary residence mortgages. This includes both the acceptable credit score limit and the mortgage rates associated with second-residence mortgages.
Of course, once you have your second home, you might be able to establish it as a vacation property so you can rent it out while you’re not using it. That way, you can mitigate your costs and even use your profits from renting out the property to help pay down your mortgage.
7 – Pools and Spas
You can choose to finance the construction of a pool in several different ways. One option you have is to take out either a personal secured or unsecured loan. Another option you have is to do a cash-out refinance on your home and use the extra cash from your new mortgage to fund the construction of your pool.
Using a cash-out refinance could also be a good way to consolidate debts while you add to the value of your home.
A home equity line of credit could also help you pay for building a pool.
8 – Real Estate Loans or Mortgages
Mortgages are one of the most reliable ways for homebuyers to finance their homes. Real estate loans are secured loans because when you agree to one of these loans, you agree the bank can use your home as collateral if you cannot pay back your loan.
Qualifying for your first real estate loan is a big landmark to cross. Check out this article below to learn about how to qualify for a home loan.
9 – Home Improvements
10 – Weddings
Home improvements are really just another way to use a personal loan. You can use
these loans for any number of home improvement projects depending on how much you need to or want to borrow. Usually, there is at least a $1,000 minimum amount for a personal loan, and depending on your credit score you may have access to up to $100,000.
You can also use a HELOC, cash-out refinance, or a home equity loan to get the cash you need to help you pay for your home improvements.
You can use a personal unsecured loan for almost anything, including weddings. Keep in mind, however, that there are no loans specifically designed to cover weddings. Therefore, no secured loan options are available, but a short-term unsecured loan can help you cover your expenses.
If you need more money to pay for wedding expenses quickly, you can usually get your money relatively quickly.
If you choose to take out a loan to help pay for your wedding, you should also know as long as you can confidently pay it back, you will be helping build your credit score.
Can I Get a Loan to Pay for a Family Vacation?
There aren’t any loans designed specifically for grand family vacations. However, all you have to do to get help paying for a big family vacation is take out a personal loan. However, it usually makes more financial sense to be methodical at saving your money to prepare for a vacation.
That being said, maybe you need some extra cash to help you get ready for your best friend’s wedding that snuck up on you. Or maybe you need it for a once-in-a-lifetime family cruise.
Either way, just be prepared to spend time educating yourself on the best options, including using lines of credit or credit cards to help you finance your vacation.
Where can I Get a Personal Loan in Tennessee?
Depending on the reason why you’re looking for a loan, you can find financing options for certain items like appliances or cars through the seller. However, they will generally try to add on hidden fees or extra services or warranties that you might not need to pay for.
Going through a local Tennessee bank for your loan will give you access to professional lenders who want to help you find the right loan for your needs.
F&M Bank has many locations throughout Tennessee and now Kentucky, where you can find a lender who will help you evaluate your financial status, your credit history, and your goals to help you get the money you need. Call or visit an F&M Bank to get started!
F&M Bank is a Member FDIC bank.
