5 Common Reasons People Apply for a Loan

Vacation LoanEveryone needs help at one point or another. The same is true for financial help! As a loan provider to locations throughout North Carolina, Virginia and Georgia, we’ve heard countless reasons as to why someone is requesting a loan. Some of them can be pretty bizarre but most of the reasons people need a loan are common. Here are five of the most common reasons people apply for a loan.

1.) Automobile purchase

Auto loans are one of the most frequently issued types of loans. As our family, work or just personal situations change, so too do the requirements of our vehicles. Whether you’re buying a new or used car, truck, SUV or even scooter, most people don’t have that kind of cash just lying around. That’s where the auto loan comes in to provide a means to finance this new automobile purchase!

2.) Bill consolidation

Just about everyone has bills or debt of some sort. Mortgage, car payments, schooling, power, water, cable, phone, credit cards… it’s just a fact of life! Many people choose to consolidate some or all of their debt into just one loan. This is done for two reasons.

Consolidating debt provides consumers with the convenience of only having to deal with one loan instead of several instances of debt. One payment is much easier to handle than several! Many people also choose to take out a loan for bill consolidation purposes because they can achieve a better interest rate. This will save them money in the long run on their interest.

3.) Medical expenses

As unfortunate as it is, many people require a loan to cover unexpected or even planned medical expenses. As family members get sick or require procedures to improve their quality of life, it can leave behind costly bills. A loan can help with these medical expenses by paying the doctor or hospital up front and allowing you to make payments on this large expense over time.

4.) Home improvement projects

It always seems like there’s something else that needs to be done around the house, right? These could be smaller projects like landscaping and painting the windows or larger projects like replacing the roof or adding a deck. Instead of continuing to put it off, many people take out a loan to pay for the expenses involved with tackling the home improvement project. Many people also use loans to pay for their new HVAC or water heater system.

5.) Vacations or Getaways

Some reasons to apply for a loan are more fun than others! Vacations, while costly, are an important part of most people’s lives. Some people choose to finance their vacations and getaways using a loan. This gives them the up-front cash they need to enjoy this special time with friends and family.


Regardless of your reason for needing a loan, we can help! Federal Financial Services provides personal and automobile loans to individuals throughout North Carolina, Virginia and Georgia. Click below to apply online!

One Response to 5 Common Reasons People Apply for a Loan

  1. Scott December 14, 2016 at 3:24 pm #

    I had never considered taking out a loan to be able to afford to go on vacation. I can see why this would be useful if you don’t have the money now, but know you will in a couple months. My parents and I have been wanting to go to Europe for a while now. I’ll have to talk to them about this option as a way to pay for it.

Leave a Reply