What Counts as an Unexpected Bill for a Personal Loan?
Even with an effective budget (opens in new tab), unexpected expenses can creep up at any time. Your car breaks down, your water heater goes out, or you need urgent dental work. Suddenly you’re facing an unexpected bill that your income may not be able to cover.
If you have an emergency savings account, you can use those funds to help cover the cost. But with nearly one in five Americans having no emergency savings,[1] it’s important to understand other options for paying unexpected bills, like personal loans (opens in new tab), payment plans, and other options before borrowing
Personal loans can provide the cash needed to cover an unexpected expense upfront. Then you repay the loan (opens in new tab), with interest, through monthly payments.
But what counts as an unexpected bill that might qualify for a personal loan? This article will explain what counts as an unexpected bill (and what doesn’t).
What Counts as an Unexpected Bill for a Personal Loan?
An unexpected bill is any expense that falls outside your normal budget and couldn’t reasonably be planned for.
Common examples of unexpected bills include:
Car repairs. A blown transmission, damaged suspension, or other mechanical problem could result in a sizeable repair bill with little to no warning.
Medical or dental bills. Injury, illness, and infections often require costly diagnostic tests, medical interventions, and prescriptions. Even if you have insurance, your policy might not cover the full cost of care, leaving you with an unexpected bill.
Home appliance issues. Malfunctioning appliances, and HVAC failures may require urgent attention. In fact, quickly addressing any issues can prevent further damage to your home, possibly saving you money in the long run.
Necessary last-minute travel. If you have a family emergency, you may need to book transportation and/or accommodations without enough notice to save up for the travel.
Veterinary emergencies. Pets are part of the family, and emergency vet care could cost hundreds or even thousands of dollars.
Essential device repair or replacement. Smartphones aren’t a luxury anymore; they’re a critical tool for consumers who rely on a phone for work, education, healthcare access, or communication. If something goes wrong with your phone, you might need to fund the replacement rather than wait while you save for a new phone.
What Doesn’t Count as an Unexpected Bill for a Personal Loan?
Any expense that you could reasonably be expected to anticipate doesn’t count as an unexpected bill.
For example:
Ongoing vehicle expenses. Gas, oil changes, and insurance premiums should all be expected as a normal part of vehicle ownership.
Medical and dental checkups. Periodic preventive doctor and dentist visits should be included in your budget.
Cosmetic procedures. Botox, fillers, and surgical enhancements can be planned for, rather than treated as an unexpected expense.
Home maintenance. Lawn care, painting touchups, and preventative HVAC maintenance are just part of homeownership. Don’t forget to include these items in your household budget.
Home renovations. Upgrading your home may well be worth the expense (as you get more enjoyment from the house and the property’s value may even increase), but this is an expense to plan for, not treat as an unexpected bill.
General travel. If you want to travel for enjoyment, new experiences, and lifelong memories, you absolutely should. Build this expense into your savings goals so you can fund it stress-free.
Optional tech upgrades. You don’t need to keep up with the latest iPhone iterations. If you want to, save a portion of every paycheck so you’ll have enough to pay cash when the newest version is released.
Why a Personal Loan Often Makes Sense for Unexpected Bills
Personal loans allow you to borrow a lump sum and repay it over time in monthly installments. Because personal loans often have fixed interest rates (opens in new tab), you know exactly how much you’ll pay each month and when the debt will be paid in full.
Personal loans are often suitable for unexpected bills because they can be processed quickly. In some cases, you might be able to access the funds you need the same day you apply for the loan. Funding timing varies by application completion, verification requirements, branch hours, and state-specific requirements.
Before accepting a personal loan, make sure you understand the terms of the agreement, including any fees.
See If You Pre-Qualify for a Personal Loan for Your Unexpected Bill
If you’re facing an unexpected bill, consider a personal loan to break the expense up into more manageable monthly payments. Check online to see if you pre-qualify (opens in new tab) or contact Lendmark Financial Services (opens in new tab) to discuss your options today.
Disclaimer: The content provided within this article is for informational purposes only and is not intended as financial, legal, or professional advice.
All loans are subject to credit approval, income verification, and normal underwriting standards, which include assessing your ability to repay the offered monthly loan payment. Minimum and maximum loan amounts, interest rates, terms, and loan fees are subject to specific program guidelines available in your state of residence and may change without notice. Available cash amounts may vary. Collateral requirements may apply. Active-duty military, their spouse, or dependents covered by the Military Lending Act may not pledge any vehicle as collateral. This offer may not be valid if you opened a loan in the past 60 days. Your credit report will be accessed before opening a new loan account.
