US Loans: 5 Benefits You Should Be Taking Advantage of Today

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Listen up, folks. There are tons of loan benefits available to you right now that could be putting cash back in your pocket every month. But are you taking advantage of them? Probably not. Americans leave billions of dollars in loan benefits on the table every year simply because they don’t know about them or don’t think they qualify. Spoiler alert: you probably do. Whether you have student loans, a mortgage, personal loans, or credit cards, loan benefits should be on your radar. They could help you pay less interest, lower your payments, earn rewards, or even get a portion of your loan forgiven. It’s like free money – and who doesn’t like the sound of that? Check out these 5 loan benefits you should be using today to keep more money in your wallet where it belongs. The only thing you have to lose is leaving these lucrative offers on the table.

Low Interest Rates Make Borrowing Affordable

Low interest rates mean now is the perfect time to borrow money for that home renovation or new car you’ve been wanting. Interest rates in the U.S. are at historic lows,

so taking out a loan today could save you thousands compared to borrowing when rates inevitably start climbing again.

Low Rates Equal Lower Monthly Payments

Lower interest rates translate directly to lower monthly payments for you. For every percentage point drop in your interest rate, you can expect to pay roughly 1% less in interest charges each month. So if rates drop by 2-3 points, you’re looking at paying 2-3% less each month—which can add up to major savings over the lifetime of your loan.

You Can Borrow More For Less

With interest rates low, you may be able to borrow more money for the same monthly payment. This means you can afford a more expensive home or vehicle without increasing your budget. You end up getting more for your money thanks to interest rates working in your favor.

Shorter Loan Terms Are More Affordable

Low rates also mean shorter loan terms, like 15-year mortgages instead of 30 years, become more affordable. Shorter terms mean paying the loan off faster so you end up paying far less interest overall. This can save you tens of thousands of dollars depending on your loan amount.

Tax Deductions Provide Extra Savings

The interest you pay on most loans, like mortgages and auto loans, is tax deductible. This means you can deduct a percentage of the interest from your taxable income. At lower rates, more of your payment goes toward principal instead of interest, so you may get a smaller tax deduction—but you’ll still come out ahead with major savings on interest.

Flexible Terms In Case Rates Climb Again

Many lenders offer flexible terms in case interest rates start rising again in the future. For example, you can take out a 30-year mortgage but lock in a low rate for the first 10-15 years. After that initial period, your rate may change but by then you’ll have paid off a good portion of the loan and saved thousands in interest charges. Flexible terms give you the best of both worlds.

Flexible Repayment Options Fit Your Budget

When it comes to repaying your loan, flexibility is key. Most lenders today offer options to fit your unique budget and needs.

Payment Plans Tailored to You

You can choose between standard repayment, graduated, extended, or income-driven plans. Standard repayment is fixed payments over 5-30 years. Graduated starts low and increases over time. Extended lowers payments by extending the term up to 25 years.

Income-driven plans like PAYE, REPAYE, and IBR cap payments at 10-20% of your income and forgive the balance after 20-25 years. These plans provide relief if money is tight. You can switch between plans down the road if your situation changes.

Deferment and Forbearance

If times get really tough, you can temporarily postpone or lower payments. Deferment pauses payments for up to 3 years for reasons like job loss, economic hardship, or military service. Interest is subsidized for certain loan types.

Forbearance also pauses or lowers payments for up to 3 years due to financial difficulties. However, interest continues to accrue. Only use these options if absolutely necessary since interest may be added to your principal balance.

Loan Forgiveness Programs

Programs like Public Service Loan Forgiveness forgive your entire balance after 10 years of qualifying payments and employment. Teacher Loan Forgiveness offers up to $17,500 in forgiveness for educators. The military also offers forgiveness for those in service.

Take advantage of these benefits and find a repayment plan that provides flexibility and forgiveness options to suit your needs. Your future self with thank you!

Borrowing Can Build Your Credit Score

Borrowing money and paying it back on time is one of the best ways to build your credit score. Your credit score determines your ability to qualify for loans, credit cards, insurance, apartments, and even some jobs. The higher your score, the better. Here are a few ways borrowing can help boost your score:

Payments are reported to credit bureaus

When you take out a loan, the lender will report your payments to the three major credit bureaus – Equifax, Experian and TransUnion. As long as you make on-time payments each month, your score will steadily increase. Late or missed payments severely hurt your score, so be sure to pay on time each and every month.

Credit mix is improved

Having a good mix of accounts in your credit report, including installment loans (like mortgages, auto, and personal loans), revolving credit (like credit cards), and service contracts (like utilities), demonstrates you can responsibly manage different types of credit. Personal loans, in particular, show you can handle fixed monthly payments.

Credit history is lengthened

The length of your credit history accounts for about 15% of your FICO score. Taking out a personal loan and making regular payments over the lifetime of the loan will extend your credit history and build your score over time. Longer credit histories demonstrate stability and reliability to lenders.

Low utilization ratio

personal loan amount is fixed, so as you pay it down each month, your overall debt utilization ratio decreases. Keeping utilization under 30% of your available credit is best for your score. Paying off a personal loan completely can drop your utilization significantly.

Higher limits

When you take on a new loan, the total amount of credit extended to you increases. A higher credit limit, combined with low utilization, demonstrates you can responsibly handle more access to credit. This reflects positively on your score.

While the benefits of borrowing for your credit are clear, only borrow what you can afford to pay back. High-interest debt and excessive balances hurt your score and financial well-being. Use credit responsibly and make on-time payments to reap the benefits of a good score.

Use Loans to Consolidate Higher Interest Debt

Using personal loans to consolidate higher-interest debt is one of the smartest financial moves you can make. By rolling multiple debts into a lower-interest loan, you can simplify your payments and pay less over time.

Lower Your Interest Rate

The average credit card interest rate is over 15% APR, while personal loan rates are often well under 10% APR for those with good credit. Transferring high-interest debts to a lower-rate loan means more of your payment goes toward principal instead of interest each month. This can help you pay the debt off faster and save money.

Simplify Your Payments

Juggling multiple bills each month can be tedious and increase the chance of missing a payment. A debt consolidation loan lets you combine several payments into one lower monthly payment. This single payment simplifies your budget and makes it easier to pay on time each month.

Improve Your Credit

As you pay down a personal loan, your credit utilization ratio improves, which accounts for 30% of your credit score. Paying on time also helps build a solid payment history. Both of these factors can give your score a nice boost over the life of the loan. With a higher score, you’ll qualify for lower interest rates on future loans and credit cards.

Fixed Repayment Terms

Personal loans have fixed terms, typically 3 to 5 years. Knowing your debt will be fully repaid at the end of the term gives you a light at the end of the tunnel. This can help keep you on track as you budget each month to ensure you meet your repayment obligations. Once the loan is paid off, you’ll have an additional several hundred dollars each month to put toward other financial goals.

Using a personal loan to consolidate your high-interest debts is a strategic way to gain control of your finances and set yourself up for financial success. Lower rates, simplified payments, improved credit, and fixed terms are all benefits of debt consolidation that can have significant payoffs down the road. Take advantage of this useful financial tool and start reaping the rewards today.

Personal Loans Offer Quick Access to Cash

Personal loans offer quick access to cash when you need it. Unlike mortgages or auto loans which are secured by property, personal loans are unsecured – meaning no collateral is required. This makes them an attractive option if you need money fast for unexpected expenses, medical bills, home improvements or other short-term needs.

Fast approval process

Personal loan applications can often be approved within a few business days. The application process is typically quick and easy, allowing you to complete it entirely online. Once approved, funds can be deposited directly into your bank account, usually within a week. This rapid access to cash can help relieve financial stress during times of emergency or crisis.

Flexible terms

Personal loans come with flexible repayment terms, usually ranging from 2 to 7 years. You choose a term that fits your needs and budget. Longer terms mean lower payments but higher interest paid over the life of the loan. Shorter terms have higher payments but lower total interest. Look for lenders that don’t charge prepayment penalties so you have the option to pay off the loan early and save on interest.

Fixed interest rates

Personal loans come with fixed interest rates, so your interest rate and payment amount will not increase over the life of the loan. This makes it easy to budget by knowing your payment will be the same each month. Interest rates for personal loans are often higher than for secured loans like mortgages, but lower than most credit cards. Shop around at different banks and credit unions for the best rates.

Consolidate high-interest debt

If you have good credit, a personal loan can be used to consolidate high-interest debts like credit cards. By rolling multiple high-interest payments into one lower fixed-rate personal loan payment each month, you can save thousands of dollars in interest charges and pay off your debt faster. Make sure to close those credit card accounts to avoid running up more debt.

Build credit history

For those with no or bad credit, a personal loan can be a way to establish or rebuild credit. When you make on-time payments each month, it demonstrates your ability to responsibly borrow and pay back money. This can help boost your credit score over time, making you eligible for lower interest rates and better terms on future loans.


See, there are so many great reasons to explore your loan options today. Between low interest rates, tax benefits, building your credit, and having extra cash on hand for important life milestones, you’d be doing yourself a disservice by not looking into what’s out there. The best part is, these benefits can apply regardless of your current financial situation. So do yourself a favor and check out your options – you never know, you might find a loan that could change your life for the better. What do you have to lose? At the very least, you’ll gain valuable knowledge about the resources available to help you save money and plan for a brighter financial future. So start researching, ask the right questions, and choose a loan that will set you up for success. You’ve got this!

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