6 Best Personal Loans of January 2022 | Personal Finance

Can You Use One Personal Loan For Anything?

Taking out a loan on someone else’s behalf or using it for any form of gambling, including investing, is an absolute no-no with any type of personal loan. Some lenders restrict loans a little more than others and prohibit the use of funds to refinance existing debts, pay for studies or make contributions to retirement savings, among other things.

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

Personal loans are safer than a balance transfer card for credit card debt consolidation. Since it is installment debt, personal loans offer low interest rates compared to credit cards with a term of up to 60 months. Lenders can even offer loans with no fees.

Prepaid credit cards have lower interest rates than traditional credit cards, and most offer an annual introductory interest rate of 0%. However, these offers typically last between 12-18 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 if I am unemployed?

While getting a loan is not impossible with unemployment, it becomes difficult without a job offer or other source of income. Some lenders may still offer you a loan, but keep in mind that the interest rates are likely to be high as you are at greater risk.

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