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Your Life
06.30.25

Smart ways to borrow money for moments that matter

If you’re thinking about borrowing money, you’ve come to the right place. Whether you’re planning an overdue kitchen upgrade, covering the costs of education or just need a little help making life happen—there are several ways to borrow to match your unique circumstances. Whatever you need money for, you’ve got options when you’re looking to borrow money.

  1. Personal Loan
    A personal loan is probably what many people think of first when they consider borrowing money. A personal loan can be either secured (backed by collateral) or unsecured (not backed by collateral). A secured loan may come with a lower interest rate, or a higher amount you're able to borrow, but it does put whatever asset you put up for collateral at risk. So if you’re not confident you can repay the loan, it’s best to avoid putting up something valuable, or personally meaningful, as collateral. It could be putting it at risk. An unsecured loan doesn’t have the same risk, but also will usually have a higher interest rate and it’s harder to get approved for a high amount.
     
  2. Home Equity Line of Credit (HELOC)
    If you own a home and have built up equity, a HELOC is a smart way to borrow. Essentially, a HELOC functions as a loan that is secured by the equity you own in your home. It often offers a better rate than other ways to borrow, and is a great option for people who want to fund home renovations. Plus, you can often get approved for more money in a HELOC than would be possible with a personal loan.
     
  3. Credit Cards
    A credit card is perhaps the most common way for an individual to borrow money. Essentially, when you have a credit card, the financial institution that issued the card gives you a line of credit that you can draw from to make purchases. Generally, any money that is used that is not paid back by the next statement date (usually about a month) will have interest charged. Credit cards can be helpful because they often offer rewards, but the interest rates can be high, so it’s easier to carry more debt than intended if you’re not careful.
     
  4. Buy Now, Pay Later – Recently, there has been an increase in consumer’s ability to access small loans to make purchases with buy now, pay later apps like Klarna and Afterpay. These apps and others like them offer convenience to shoppers because they give an easy way for a big (or small) purchase to be broken into set installments over a specific period of time. These short-term loans often charge no interest initially but have late fees and interest if the loan is not repaid in the agreed-to term. 
     
  5. Student Loans
    Student loans are another extremely common form of debt with 25% of U.S. adults under 40 carrying some student loan debt, according to Pew Research. Many loans are backed by the federal government, with private options also available (often with higher interest rates). If you’re planning to pay for school, student loans can be helpful—just be sure to understand the terms and how repayment fits into your future.

A personal loan can help you follow your individual dreams and build the life you want. Atlantic Union Bank’s financial experts are also available to chat over your options if you’re looking for a personal loan, HELOC or credit card. Schedule an appointment now.

Sources:
https://www.nerdwallet.com/article/mortgages/heloc-home-equity-line-of-credit
https://www.investopedia.com/terms/c/creditcard.asp
https://www.pewresearch.org/short-reads/2024/09/18/facts-about-student-loans/

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