6 Best Personal Loans of January 2022 | Smart Change: Personal Finances

Can you use a personal loan for anything?

Taking out a loan in someone else’s name or using it for any form of gambling – including investing – is completely prohibited with any type of personal loan. Some lenders restrict lending a little more than others and prohibit the use of funds to refinance existing debt, pay for college, or contribute to retirement plans, among other things.

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

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

Balance transfer credit cards have lower interest rates than traditional credit cards, and most offer an initial APR of 0%. 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 while I am unemployed?

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