December 11, 2022

6 best personal loans of January 2022 | Personal finance

Can you use a personal loan for anything?

Taking out a loan on behalf of someone else or using it for any form of gambling, including investing, is totally prohibited with any type of personal loan. Some lenders restrict lending a bit more than others and prohibit the use of funds to refinance existing debt, pay for college education, or contribute to retirement plans, among other things.

Should I apply for a personal loan or a balance transfer card to consolidate credit card debt?

Personal loans are a safer bet than a balance transfer card when it comes to credit card debt consolidation. As they are considered installment debt, personal loans have low interest rates compared to credit cards, with terms of up to 60 months. Lenders can even offer loans at no cost.

Balance transfer credit cards have lower interest rates than traditional credit cards, and most offer 0% introductory APR. However, these offers usually last between 12 and 18 months, after which your APR will be based on your creditworthiness and market conditions. Transfer fees of up to 5% of the transferred amount may also apply.

Can I get a personal loan in case of unemployment?

While it is not impossible to get a loan when you are unemployed, it will be difficult without a job offer or other source of income. Some lenders may still offer you a loan offer, but keep in mind that the interest rates will likely be high because you will pose a higher risk.