Whether financing a major life event, handling an unplanned expense or consolidating debt, a personal loan can help provide consumers with control over their finances. In fact, people in solid financial standing agree. Sixty percent of those who have used a personal loan graded themselves as having good or excellent financial health, according to a survey commissioned by Discover Personal Loans.
Survey results also found that many who have used a personal loan in the past would consider using one again. More than half of those who have used a personal loan in the past and grade their overall financial health as excellent or good say they are very or somewhat interested in using a personal loan in the future.
“After seeing how beneficial personal loans can be, it’s not surprising that people in good financial health recognize the value in using them more than once,” said Dan Matysik, vice president of Discover Personal Loans. “A personal loan can be an effective option to help people simplify finances and take control of their financial future.”
The survey results show that Generation X, those between the ages of 35 to 54, and baby boomers, those ages 55 and older, use personal loans more than millennials, those ages 18 to 34:
- 54 percent of baby boomers have used a personal loan
- 49 percent of Gen Xers have used a personal loan
- 36 percent of millennials have used a personal loan
The majority of Gen Xers, 61 percent, and baby boomers, 67 percent, picked a personal loan because of the interest rate, followed by the trustworthiness of the lender, according to the survey.
When asked to rank several categories for which they would most likely use a personal loan, 53 percent of respondents said they would use one for a major life event or purchase such as a wedding or car, 31 percent said they would use it for debt consolidation or something else, and 17 percent said they would use it for an unplanned expenditure like a major medical expense.
“When it comes to a personal loan, everyone’s situation is different. Personal loans are a flexible financial tool that can be tailored to fit a borrower’s individual needs,” said Matysik.
About the Survey
The national survey of 2,000 adults was commissioned by Discover Personal Loans and conducted by Rasmussen Reports, an independent survey research firm (http://www.rasmussenreports.com), March 11- 15, 2016. The margin of sampling error was+/- 2 percentage points with a 95% level of confidence, except for questions 13-17 for which the margin of sampling error is +/- 3 percentage points.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover card, America's cash rewards pioneer, and offers private student loans, personal loans, home equity loans, checking and savings accounts and certificates of deposit through its direct banking business. It operates the Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visit www.discover.com/company.
Survey Results From Rasmussen Reports
| Total | Have you ever take out a personal loan? | |||||||||
| Adults | Yes | No | Not sure | |||||||
| Excellent/Good | 58% | 60% | 58% | 49% | ||||||
How would you grade your overall financial health? | Excellent | 15% | 14% | 16% | 11% | |||||
| Good | 43% | 46% | 42% | 38% | ||||||
| Fair | 30% | 30% | 30% | 35% | ||||||
| Poor | 10% | 10% | 11% | 11% | ||||||
| Not sure | 1% | 0% | 1% | 5% | ||||||
| Total | Age | |||||||||||||
| Adults | 18-34 | 35-54 | 55+ | |||||||||||
| Have you ever take out a personal loan? | Yes | 47% | 36% | 49% | 54% | |||||||||
| No | 48% | 58% | 47% | 39% | ||||||||||
| Not sure | 5% | 6% | 4% | 7% | ||||||||||
| Answered By Those Who have taken a personal loan - 998 Adults | Total | Have you ever take out a personal loan? | ||||||||||||
| Adults | Yes | No | Not sure | |||||||||||
| Based on your experience with personal loans, how interested would you be in using the same kind of loan for similar purposes in the future? | Very interested | 21% | 21% | 0% | 0% | |||||||||
| Somewhat interested | 33% | 33% | 0% | 0% | ||||||||||
| Not very interested | 23% | 23% | 0% | 0% | ||||||||||
| Not at all interested | 19% | 19% | 0% | 0% | ||||||||||
| Not sure | 4% | 4% | 0% | 0% | ||||||||||
| Total | How would you grade your overall financial health? | |||||||||||||
| Adults | Excellent | Good | Fair | Poor | Not sure | |||||||||
| Very/Somewhat | 53% | 53% | 52% | 57% | 46% | 22% | ||||||||
| Based on your experience with personal loans, how interested would you be in using the same kind of loan for similar purposes in the future? | Very interested | 21% | 31% | 19% | 18% | 20% | 0% | |||||||
| Somewhat interested | 33% | 22% | 33% | 39% | 26% | 22% | ||||||||
| Not very interested | 23% | 18% | 27% | 21% | 21% | 0% | ||||||||
| Not at all interested | 19% | 24% | 18% | 16% | 29% | 78% | ||||||||
| Not sure | 4% | 6% | 3% | 6% | 4% | 0% | ||||||||
| Total | ||||
| Adults | ||||
| For which one of these large expenses would you be most likely to use a personal installment loan? | Auto purchase | 31% | ||
| Debt consolidation | 11% | |||
| Home improvement project | 12% | |||
| Major medical expense | 17% | |||
| Vacation | 2% | |||
| Wedding | 2% | |||
| School tuition | 6% | |||
| Something else | 5% | |||
| Not sure | 15% | |||
| Answered By Those Who have taken a personal loan - 998 Adults | Total | Age | ||||||||
| Adults | 18-34 | 35-54 | 55+ | |||||||
| What was most important factor to you when choosing your lender for your personal loan? | Interest Rate | 61% | 53% | 61% | 67% | |||||
| Fees | 5% | 5% | 5% | 3% | ||||||
| Trustworthiness of lender | 17% | 14% | 15% | 20% | ||||||
| Ease of application | 4% | 5% | 6% | 3% | ||||||
| Loan amount | 7% | 16% | 7% | 2% | ||||||
| Something else | 5% | 5% | 6% | 4% | ||||||
| Not sure | 1% | 3% | 1% | 1% | ||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160622005349/en/
Contacts:
Rob Weiss
224-405-6304
robertweiss@discover.com
@Discover_News
