You may want to consider a personal loan the next time you’re in a financial bind.

Here’s why:

Lower APR than some credit cards

If you have a credit card at your disposal, you may be tempted to swipe away the problem or take a cash advance. While this is definitely a quick fix, you should be mindful of the interest you could accrue over time, which may be much higher than that of a personal loan. Also, don’t forget about the cash advance fee and even higher APR that may accrue immediately.

Shorter loan term

Unlike credit card balances that are stretched out over time, personal loans have set monthly payment amounts and you’ll typically repay the loan within a few years. Plus, it’s an installment loan and if handled responsibly, it will convey to creditors you can responsibly handle debt over time.

Safety valve

Are you about to embark on a life-changing journey, such as becoming a stay at home parent or starting a new business, and foresee a possible financial emergency in the near future? If so, you may want to secure a personal loan before disaster strikes so the safety valve will be there when you need it. (You may also want to consider applying for a line of credit from your financial institution).

Debt consolidation

Are you saddled with credit card debt and one step away from financial ruin? Consolidating your credit card debt by taking out a personal loan should free up some cash and allow you to get back on track, financially. You could also save money with a lower, fixed APR.

Eliminate budgeting woes

With credit cards, the monthly payment fluctuates as the outstanding balance changes. However, the payment amount for a personal loan will remain constant, making it easy to incorporate it into your spending plan.