Nearly half of Americans take out personal loans for major purchases — here's a better alternative

If your personal finances are already feeling a bit precarious, having to cover a major expense feels like a bowling ball flattening your wallet, especially if you don't have enough money in the bank to cover it. In fact, many turn to borrowing in this case. A recent Experian survey found that nearly half of Americans (42%) say they would rely on a personal loan to cover a major purchase. Other reasons for taking out a personal loan included paying for emergency expenses (35%), home improvement costs (33%) and education (17%). A personal loan is a solid financing option because it's versatile and can be used for any expense — and it generally comes with lower a APR than a credit card — but it's also worth knowing of other financial products that are designed to help pay for specific needs, such as education for instance. Here are three personal loan alternatives and when to use each. Personal loan alternatives 0% APR credit cards HELOCs Private student loans When a personal loan makes sense Bad credit? You can still get funding for major expenses. Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability. Upstart Personal Loans Annual percentage rate 6.20% - 35.99% Loan amounts $1,000 to $75,000 LEARN MORE Avant Personal Loans Annual percentage rate 9.95% to 35.99% Loan amounts $2,000 to $35,000 LEARN MORE 0% APR credit cards Zero percent APR credit cards are designed to give you an introductory period where you can make purchases and pay zero interest on that balance month to month (for as long as the intro period lasts). This lets you stretch out the cost of a major purchase over several months without being charged interest. It's also an ideal financing option for covering an emergency expense that you can't pay out of pocket for; with a 0% APR credit card, that emergency doesn't put you in deep debt, as long as you pay it off over the promotional period. Here...