A growing number of people these days, currently over 10% of all U.S. adults, take out personal loans to help with their financial needs.1 This type of funding can offer an alternative to other options because a loan can be used for a large variety of reasons. Some use the money to pay off multiple debts. Others need it for home or auto repairs.
To better understand the top reasons why people take out a personal loan, we looked into why new OneMain customers applied for a loan. We pulled internal data for both secured and unsecured loans to build the report. (Secured loans are backed with something of value that the applicant owns, called collateral. Examples include a car, truck, boat or RV. An unsecured loan is money borrowed without using collateral.)
Here are the results of our research:
1 Tatham, Matt. "Experian Data Shows Personal Loan Debt Continues to Grow." https://www.experian.com/blogs/ask-experian/research/personal-loan-study/ (accessed August 14, 2019).
Published on August 28, 2019. Matt Diehl contributed to this article. Infographic design by Zac Willett.
Infographic by OneMainFinancial.com