Emergencies happen, and even if you’re prepared with a rainy day fund, it might be a struggle to come up with the money you need on short notice. When it comes to covering those surprise costs, there are three main choices—use savings, rely on a credit card, or take out a loan. Though personal loans might seem like a strange choice to help you pay for an emergency car repair or hospital bill, they’re one of the best options you have. Here are a few reasons to use small loans to cover those surprise costs that life throws your way.

3 Reasons to Use Personal Loans to Pay for Unexpected Expenses

1. Lower Interest Rates

Credit cards have incredibly high interest rates, increasing the total amount you’d pay to cover unexpected costs—unless you pay them off immediately. If the amount is high enough, this can add hundreds to the total cost. Personal loans have much lower interest rates, making your total expenses much more affordable in the long run.

2. Affordable Payments

Sometimes, coming up with cash can be a challenge. By taking out a small loan to cover expenses, you’ll get the cash you need but also be able to repay the loan more slowly. You’ll make payments to the lender each month until the loan is paid off. Once you’ve paid down the balance and the interest owed on the loan, you’re done.

3. Unlimited Options

When you take personal loans out from trusted loan companies, you can use the money to pay for anything. There are no restrictions on how you can use the loan, only the expectation that you’ll pay off the balance within the specified loan term. This makes them ideal for individuals encountering unexpected repair costs or surprise medical bills who don’t want to max out their credit cards.

At Coastal Finance Company in Savannah, GA, their experienced team wants to help get the money you need for an emergency. Whether you’re looking for personal loans to cover unexpected expenses or want an advance on a paycheck, their experts will work to give you a decision in as little as an hour. Learn more about their services online, or call (912) 303-9979 to speak with a friendly representative today.