Can you take out personal loans for household bills?
Yes, you can take out personal loans for household bills.
Who offers personal loans for household bills?
With both traditional and non-traditional lenders offering personal loans for household bills, borrowers will have no shortage of options to compare. Depending on the amount you’re looking to borrow, the type of personal loan you’re looking for and your credit history, there is a wide range of personal loans for household bills available.
Comparison sites like RateCity are a great place to see who offers personal loans for household bills and help you make a more informed decision when selecting a suitable lender.
How do you take out personal loans for household bills?
Once you’ve compared your options and found a personal loan for household bills you want to take out, you can click through to apply directly to the lender's website and begin the application. Depending on the type of loan you’re looking for and your credit history, some borrowers may be better off engaging a mortgage broker to help them with their application and loan structure.
Can people with bad credit take out personal loans for household bills?
People with bad credit can take out personal loans for household bills – at least in some situations. If you’ve got bad credit and you’re sure that you can afford to make the repayments, there are some online lenders and non-traditional lenders that can help people with bad credit take out personal loans for household bills. But if you have a history of bad credit and you can’t afford to pay your household bills, you should be very wary of taking out another loan and falling into a debt trap.
How do you compare personal loans for household bills?
There is a wide range of personal loans for household bills on offer. To help you compare your options, look at the following;
- Interest rate. Start by looking at the interest rate and compare the difference between a fixed and variable rate. When comparing options side by side, look at the comparison rate as it combines all fees to give you a more accurate rate.
- Fees vary between lenders so check establishment fees, ongoing fees, early repayment penalties and late payment fees.
- Loan amount. Some lenders may have a minimum loan amount that may not suit you.
- Loan terms. Loan terms vary between 30 days and seven years, depending on the lender and the amount you wish to borrow.
- Repayment schedule. Some lenders may let you schedule your repayments to suit your pay cycle.
What are the pros and cons of personal loans for household bills?
If you’ve got household bills piling up, taking out a personal loan for household bills may help you consolidate your debt and avoid any late payment penalties or credit impairments. Before applying for any personal loans for household bills, always weigh up the pros and cons.
The obvious down side of taking out any sort of personal loan is that you will have to pay – in the form of interest and fees – for the privilege. And if you fall behind on your repayments, it could damage your credit score.
Generally speaking, personal loans for household bills tend to have lower interest rates than credit cards, which may work out costing you less in the long run, especially if you’re not in the habit of paying off your monthly statement in full.
If you’ve got an existing mortgage with a redraw feature, this may be a better option as the interest rate is generally lower than that of a personal loan or credit card.