Experts agree that you should keep at least three months of living expenses in your savings account for unexpected expenses. We all know that’s not how the real world works. Groceries, gas and utilities cost money. It’s sometimes a miracle if you have anything left for a nice date night or a fun afternoon with the kids at the end of the week.
What happens when something unexpected does pop up? You need a new washer and dryer? You take a visit to the emergency vet? Your friend announces an engagement and wants you to book a trip to the Bahamas ASAP.
For everything that life throws at you, there’s a personal loan to help cover the expenses and help open opportunities for you. Keep reading to learn how to get a personal loan and what it can help you cover. Or, skip the post and apply for your personal online right now.
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What is a personal loan?
Let’s quickly break down what a personal loan is:
- Unsecured: Like a credit card, you don’t need to put up any collateral (like a house or car) for a personal loan. This makes them more accessible to a wider amount of borrowers.
- Fixed interest rate: The rate on your loan closing documents never changes during the life of your loan. This means your monthly payment stays the same until you finish paying off your loan.
- Lump-sum disbursement: You receive the funds from your personal loan in a single, lump sum. In most cases, you can use these funds however you want.
You can apply for up to $50,000 in funding through a personal loan at Arsenal. The rate you receive depends on your credit score and repayment terms. The better score you have, the lower your rate.
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How to get a personal loan
Unlike mortgages, home equities or autos, a personal loan is one of the easier loans you can apply and be approved for. The loans mentioned first require extensive amounts of paperwork, liability insurance and collateral. Because it’s unsecured, a personal loan only really requires an application.
Consolidate credit card debt with a low-interest personal loan
Getting a credit card is really easy. It’s a little too easy, sometimes. They can be a great tool if you pay off your balances each month and avoid the interest charges. If you’re struggling to make ends meet, chances are good you’re going to accrue interest each month.
A personal loan can help you consolidate your debt into a single, lump sum and give you a more manageable monthly payment — often at a lower interest rate. This could even help boost your credit score, making it easier to get lower rates on bigger loans (for a home or automobile) in the future.
Skip the credit card application for household appliances
It’s almost like your major household appliances know the exact worst moment to break down. We’re not talking about your microwave or toaster. We mean your HVAC system breaking down in the middle of summer or winter. You could even sit on your couch the wrong way and it completely collapses on you.
Whatever big-ticket expense you need, there’s a retailer who offers a credit card for it. Usually these credit cards have a zero percent financing offer for the first few months. If you look at that offer a little more closely, after the promo period, that rate can go up to 30 percent.
Getting a personal loan for your larger appliance, furniture or household expenses could save you big money if you’re looking for longer financing terms.
Destination weddings cost a lot
Your friend just got engaged! That’s awesome news. They want you to be in the wedding. It’s not just any old wedding, but a destination wedding in Hawaii. Not only are you going to have to cover the cost of air travel and hotel, but you’re also going to need to cover your wedding outfit, bachelor/bachelorette party, possibly the bridal shower and a bunch of other stuff.
How do people afford this? They might need to get a personal loan. A set payment each month for expenses associated with a wedding might be a lot more doable than racking up debt on a credit card. The choice is ultimately up to you.
Unexpected medical expenses
If you chip your tooth, you could end up with a dental bill for thousands of dollars. If your dog eats something out in the yard, there’s another couple of hundred that you never planned on spending.
Routine medical expenses for you and your family cost enough, but these little trips to medical professionals can wreak havoc on your credit card balances. Funds from a personal loan can help you budget better with a steady monthly payment structure.
How to get a personal loan for first-time borrowers
If you don’t have a credit history (with the exception of student loans), you can still get approved for a personal loan as a first-time borrower. Borrow up to $2,500 at a 15.00% APR* with repayment terms up to 36 months.
Apply for a personal loan online
*APR=Annual Percentage Rate. Rate as of 7.18.2025 and subject to change.
