 TITLE: How Does a Personal Loan Affect Your Credit Score? CONTENT: When to Consider Taking Out a Personal Loan\n-------------------------------------------\nNow that you know the pros and cons of personal loans, when might it make sense to apply for one? Here are some scenarios where a personal loan could be your best option.\n*   **You need to pay off high interest debt.** Since they have lower interest rates than credit cards, personal loans can help you get out of credit card debt at a lower cost.\n*   **You have a costly emergency.** Sure, you could put that new roof on a credit card—but then you're taking on high interest debt that will grow over time. When an expensive emergency strikes, a personal loan with its lower interest rate and fixed payments can be a better way to go.\n*   **You want to remodel your home.** Unlike a home equity line of credit (HELOC), personal loans don't require using your home as collateral. This allows you to finance remodeling without putting your home at risk.\nSome people take out personal loans to finance weddings, vacations and other big events. Whether or not this makes sense for you depends on your personal finances. If you know you'll have the money to make the loan payment every month, a personal loan could be the answer you're looking for. But if you're already living on a tight budget, taking out a personal loan to finance a trip to Fiji could get you in trouble. If you can't make the payments, your credit score will suffer. Instead, start socking away money to save for the trip of your dreams rather than paying extra in interest to fund it. Find out more about when to take out a personal loan.\n> Find the best personal loans in Experian CreditMatch™.\nPersonal loans can be a useful tool for improving your credit score, reducing credit card debt or covering unexpected expenses. However, they also come with costs and risks that you need to consider before you apply. Carefully weigh the pros and cons of personal loans and take an honest look at your own financial behavior to decide if a personal loan is right for you. END