A personal loan is money borrowed from a lender that can be used for nearly any purpose, including paying off debt, financing a large purchase such as a vehicle or a boat, or covering the cost of a major expense like a wedding or vacation.
Loans can be obtained from online lenders, local banks and credit unions and the funds are provided in a lump sum. Once you receive the cash, you must make payments until the debt has been fully repaid.
One of the biggest benefits of personal loans versus credit cards is that they come with a fixed interest rate and repayment terms.