The contents provided on this page are for informational purposes only and do not constitute financial advice. Consider your personal circumstances and objectives before making any financial decisions.
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Life has many expensive needs, wants, and nice-to-haves. Things that are, usually but not always, planned for, but would take a long time to finance with saving, or may be out of reach for whatever reason.
The reasons to get a personal loan are, well, personal, but there are a large handful of common uses such as scheduled dental work or medical procedures, home renovations, pet-related bills, a rental bond, and more.
Weighed up carefully, considering necessity and other available financial options, a personal loan can be an excellent tool to use, but it must be used with care and eyes-wide-open.
A personal loan can be used for almost any personal expense you can think of. Lenders are even required to ask for the reason during a loan application as part of compliance requirements.
Common uses include:
And the list goes on.
Some people use personal loans for planned expenses, while others use them to manage larger unexpected costs. The right use depends on the amount you need, the total cost of borrowing, your repayment terms, and whether the repayments fit your budget.
For smaller unexpected costs, there are options like payment plans with bill providers, no interest loans (NILs) for eligible expenses, and short-term loans like Beforepay Pay Advance. Beforepay offers up to $2000 in as little as 5 minutes, with no credit checks and no hidden costs.
But before you start filling out an application, ask yourself whether the expense really requires a personal loan.
A personal loan is a type of financial credit where you borrow money from a lender and repay it over an agreed period. However, within that simple framework there are several broad categories:
The best fit depends on your circumstances, the loan amount, and the individual lender.
Sure can. This may include specialist appointments, surgery, scans, treatments, prescriptions, or out-of-pocket health costs that aren’t fully covered by Medicare or private health insurance deductibles.
A medical expenses loan could be ideal when:
Before borrowing, you might consider asking the provider for a written quote, checking whether your private health cover applies, and asking whether the clinic offers an in-house payment plan.
If your pet needs treatment and the cost is more than you can comfortably pay in one go, a personal loan for vet bills may be the way to go.
Common reasons people look for loans for vet bills include:
Before borrowing, it can help to ask your vet for an itemised estimate and check whether there are lower-cost treatment options, staged treatment plans, or pet insurance benefits available.
A personal loan may suit larger vet expenses where you need more time to repay. For smaller gaps, a shorter-term option, like Pay Advance, may be more appropriate, depending on the amount and timing.
Have some upgrades, repairs, or improvements to make around the house? A personal loan may suit.
Upgrades may include:
A home renovation loan may be useful for practical improvements, especially when the work protects the comfort, safety, or function of your home. It can also be useful when the cost is known upfront and you have quotes from trades.
For larger projects, you may also want to compare a personal loan with other options, such as refinancing (if you own your home) or savings. The right choice depends on the size of the project, total borrowing cost, repayment timeline, and your available resources.
A personal loan can be used for travel expenses to help cover flights, accommodation, tours, transport, travel insurance, or other trip costs.
Travel loans are usually better suited to planned travel than impulse bookings. A personal loan could help if:
Before borrowing for a holiday, it can help to check whether you can reduce the cost by travelling off-peak, choosing cheaper accommodation, using savings, or delaying the trip until you can pay more upfront.
Though we understand that sometimes that’s not always possible. In those cases (and all the other ones) make sure you fully understand the terms of the loan and have a plan for slotting it into your future budgets.
To help you find the right travel option, we’ve written an article about 5 sites to find travel deals. Check it out after you finish this one!
If you want to learn a new skill or develop in a particular field, an education loan can be one potential option. These personal loans can be used for study-related costs such as:
Borrowing for your education can be considered a practical expense, especially if it supports your work or future plans, but should still be approached with care.
Before borrowing, you might consider:
Moving house can be both a stressful and expensive time of your life, particularly if you already have an active rental bond. A bond loan can be a handy way to pay an equivalent bond before the previous one has been returned.
A personal loan for moving expenses may cover:
While a personal loan is one option for moving costs, there are others that may suit your situation. For example, Services Australia offers Rent Assistance for those who receive certain payments from them. And for those based in NSW, the government is rolling out their Smart Rental Bonds initiative, allowing renters to transfer and apply a bond from one property to another for a small fee.
Weddings can be one of the largest series of expenses a household will face. Venue deposits, catering, photography, outfits, flowers, transport, accommodation, honeymoons, and more, definitely add up. A wedding loan can be useful to help you stretch the costs out but should always be approached with caution.
A wedding loan may help if:
Wedding expenses can balloon out of proportion quickly, so it can be good to decide the most important things early. For example, you might prioritise venue, food and photography, then simplify or remove lower-priority costs.
Before borrowing, consider whether you can:
A personal loan can help spread the cost, but your repayments will continue long after the wedding day. It’s worth making sure those repayments still feel manageable once normal life resumes.
A dental bill can bite a hole in your budget. A personal loan can help with treatment including:
Before borrowing, you might consider asking your dentist:
A personal loan can be used for car purchases but many lenders also offer specific car loan/car finance products.
A car loan may help cover:
Before borrowing for a car, it can help to check:
Once you have all the information, you can make a fully-informed financial decision, or maybe shop around for a cheaper option.
It’s never a good time for a home appliance to break, but if something does, a personal loan may be able to soften some of the financial burden.
These might include:
Or a mix of multiple.
Before taking out a loan, it’s worth comparing:
A personal loan is only one way to manage a larger cost. Depending on the expense, timing and amount, another option may fit better.
Using savings can help you avoid interest and fees. But if using savings would leave you without a buffer for essentials, you may want to use a balance of both.
Some providers, such as dentists, vets, schools, or medical clinics, may offer payment plans. These can be worth asking about before applying for a loan.
A payment plan may be simpler if it’s interest-free or low-cost. A personal loan may offer more flexibility if you need to pay multiple providers or cover several costs at once.
A credit card can be convenient, but it can also become expensive if you carry a balance over time. A personal loan usually has a set repayment schedule, which may make budgeting easier.
Buy now pay later may work for smaller purchases, but it can become hard to track if you have several repayments across different providers. Spreading costs can make an expense feel more manageable upfront, but the full cost will always be lurking until it’s repaid.
A Pay Advance is generally designed for smaller, short-term gaps, while a personal loan is usually better suited to larger expenses with longer repayment terms. Pay advances are often used for immediate costs like a vet bill, car repair, or bill due before payday, while personal loans are commonly used for larger expenses like renovations, education, or relocation.
Read our comparison between pay advance and personal loan to help you choose the right product for you.
A personal loan can be useful, but it won’t suit every expense. A good place to start is asking a few practical questions.
Some reasons to borrow are more practical than others.
For example, borrowing for dental treatment, car repairs, moving costs, or a replacement fridge may feel different to borrowing for a holiday or wedding extras. That doesn’t mean lifestyle borrowing is wrong. It just means you need to be extra-vigilant and cautious when borrowing.
Personal loans work best when the expense is clear. Written quotes can help you avoid borrowing too little or more than you need.
Before applying, check the repayment amount against your income and regular expenses.
If your income changes from week to week, it can help to budget around a lower-income month rather than your best month. Tracking income patterns over 3–6 months and separating essential from non-essential expenses can give you a rough indicator of cash flow, especially when income is irregular.
Don’t just look at the monthly repayment. Check:
A personal loan can be used for many different reasons, from practical essentials to lifestyle choices.
The key is to match the loan to the need.
If the expense is important, the amount is clear, and the repayments fit your budget, a personal loan may help you manage the cost over time. If the expense can wait, be reduced, or covered through a lower-cost option, it may be worth exploring those paths first.
Want to dive deeper into personal loans?
Learn how personal loan fees and interest work.
A personal loan can be used for many personal expenses, including medical bills, vet bills, dental work, home renovations, travel, education, moving costs, weddings, cars, and home appliances. Some lenders may have restrictions, so it’s worth checking the loan terms before applying.
Not always. While personal loans are flexible, lenders may ask what the loan is for and may have restrictions on certain uses. It’s best to check the lender’s terms before applying.
Often, yes. Many lenders ask for the loan purpose as part of the application. This helps them understand what you’re borrowing for and whether the loan type matches the expense.
Yes, a personal loan can be used for unexpected expenses, especially if the amount is larger and you need time to repay. For smaller short-term gaps, another option, such as a Pay Advance or provider payment plan, may be more suitable.
A personal loan may be used for moving costs, rent in advance, or rental bond. However, government bond loan schemes or rental support may be available depending on your state, territory and eligibility, so it’s worth checking those options first.
It depends on the cost, provider terms, and repayment schedule. A payment plan may be useful if it’s low-cost and offered directly by the provider. A personal loan may be more useful if you need to cover multiple costs or want one structured repayment.
It depends on the expense and how you plan to repay it. A personal loan usually has a structured repayment schedule, while a credit card can become expensive if you carry a balance over time. Compare the total cost, fees, interest, and repayment flexibility before deciding.
It’s usually sensible to borrow only what you need. Borrowing extra may feel convenient, but it can increase your repayments and the total cost of the loan.
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