Personal loans are no longer viewed as a financial last resort. In fact, they have become a common tool that many Americans use to achieve goals, cover unexpected expenses, and make major purchases.
According to new data analyzed by the financial experts at Achieve, personal loan ownership has been steadily increasing since 2017. Today, 38% of American adults have at least one personal loan, and there are now more than 67.5 million personal loans listed on consumer credit reports—an increase of 7% from the previous year.
So what exactly are Americans borrowing money for?
Major Purchases Lead the Way
The most common reason people take out personal loans is to fund major purchases. Whether it’s buying a vehicle, paying for a wedding, or covering another large expense, demand for loans tied to major purchases jumped from 32% in 2024 to 42% in 2026.
This increase reflects a growing trend of consumers using loans as a planned financial strategy rather than waiting until they have saved enough cash to make a purchase outright.
Emergency and Medical Expenses Remain Important
While many loans are helping people reach personal goals, others continue to serve as financial safety nets.
The percentage of Americans considering loans for emergency expenses rose from 27% to 35% over the past two years. Medical expenses also increased as a reason for borrowing, rising from 16% to 20%.
Interestingly, most Americans still try to pay medical bills using their own resources. Four out of five consumers report relying on their personal budgets before turning to borrowing. However, when unexpected costs arise, loans remain an option many people consider.
Education Loans Continue to Generate Interest
When it comes to online searches, education loans remain the most researched borrowing option.
Nearly 3 million online searches related to education loans were recorded in 2026, significantly outpacing searches for emergency financial assistance. As college costs continue to rise, it’s no surprise that many families are exploring financing options to make higher education more affordable.
Demand for education-related loans also increased from 11% to 17% over the past two years.
Vacation Loans Are Becoming More Popular
Borrowing for experiences is also gaining traction.
The percentage of Americans who view vacations as a worthwhile reason to take out a loan increased from 13% in 2024 to 21% in 2026. While financial experts generally encourage saving for travel whenever possible, many consumers are choosing financing options to make dream vacations happen sooner.
In fact, vacation loans are now nearly as popular as loans used for medical expenses.
Home Improvements Continue to Drive Borrowing
One of the biggest increases came from homeowners looking to improve their living spaces.
The percentage of consumers willing to take out a loan for home improvement projects rose from 23% to 33% between 2024 and 2026. Whether it’s updating a kitchen, replacing a roof, or creating a more comfortable home environment, Americans continue investing in their properties.
This trend may also reflect homeowners choosing renovations over moving, especially as housing affordability remains a challenge in many markets.
What This Means for Consumers
According to Achieve’s financial analysts, Americans are increasingly viewing personal loans as a financial planning tool rather than a last-minute solution during times of crisis.
Many of today’s borrowers are using loans to pursue goals such as education, home improvements, vacations, and major purchases. While emergency and medical expenses remain important reasons for borrowing, aspirational goals are becoming a larger part of the lending landscape.
However, there is another side to the story. The same research found that 42% of consumers cite current economic conditions as a primary reason for considering a loan. Rising costs and affordability challenges may be encouraging more people to finance expenses that previous generations might have paid for with savings.
As always, experts recommend carefully evaluating interest rates, repayment terms, and your overall budget before taking on any new debt.
Have you ever used a personal loan for a major purchase, home project, or unexpected expense? As borrowing becomes more common, the conversation around responsible lending and financial planning continues to evolve.
