In moments of financial uncertainty, the quest for regaining control over one’s finances often takes center stage. A strategic tool for achieving financial stability are personal loans. These loans can wield substantial power in steering toward sound financial standing. Here are five compelling reasons to use a personal loan to reach financial stability.

1. Loans are Structured to Help Today without Hurting Tomorrow

Personal loans can get you the cash needed to overcome whatever instability you’re experiencing. There aren’t many restrictions on how you spend the loan funds, so if you need to cover bills, pay a deposit on a new apartment, repair a car, or consolidate debt, a personal loan can help. With fixed repayment terms, payment sizes will be the same on a predictable repayment schedule which helps with planning, budgeting, and creating stability.

2. Loans Help Make Purchases Affordable

If you’re planning to make a large purchase, a loan can change how your budget is affected by the purchase. If you pay for the item with the money in your bank account, you’d no longer have that cash to use for other purposes, like rent or bills. If you use a loan, you can pay the loan back over time in payment sizes that fit your budget and are easy to plan for. Mortgages and car loans—which are not personal loans—are perfect examples of how loans are used to make a purchase affordable, and the principal applies to personal loans.

3. Improve Your Credit Score

Making payments on time and in full will help raise your credit score, which creates more opportunity for you. You may be able to refinance for better loan terms. You may not have to pay deposits on utilities. You may increase chance of approval on a rental application for an apartment. In the future, you’ll have even more credit choices in terms of the companies you can choose to work with as well as types of financial products that are available to you. Good credit scores pave the way for more financial choices.

4. No Collateral Required

Unsecured personal do not require collateral, meaning you won’t risk your home, vehicle, or other item of value in exchange for getting a loan. With secured loans like mortgages or car loans, lenders require you to secure the loan with collateral in case you can’t pay it off. The lender will take ownership of the valuable item in exchange for repayment. Since unsecured personal loans don’t have this requirement, they’re more accessible to a wider variety of people.

5. Quick & Easy Process

If you’re going through a financially stressful time, you probably don’t want to deal with a stressful loan application. Many modern lenders offering personal loans also offer a streamlined application process and swift approval timelines. Even better, many offer a prequalification process before you apply, which typically takes only a few minutes. Without affecting your credit score, prequalification can tell you whether or not an application will be approved, and if it is, how much money you qualify for.