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

6 Best Personal Loans of January 2022 | Smart Change: Personal Finance
Written by Publishing Team

Can you use a personal loan for anything?

Taking a loan on someone else’s behalf or using it for any form of gambling – including investing – is strictly prohibited with any type of personal loan. Some lenders limit loans a little more than others and prohibit using the money to refinance existing debt, pay for college or contribute to retirement plans, among other things.

Should I apply for a personal loan or 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. Since they are considered installment debt, personal loans have lower interest rates compared to credit cards, with terms up to 60 months. Lenders may offer loans without fees.

Balance transfer credit cards have lower interest rates than traditional credit cards, and most offer an introductory interest rate of 0%. However, these offers usually last 12 to 18 months, after which your APR will depend on your credit eligibility and market conditions. A transfer fee of up to 5% of the amount transferred may also apply.

Can I get a personal loan while I am unemployed?

While it is not impossible to get a loan while unemployment, it will be difficult without a job offer or other source of income. Some lenders may still extend the loan offer to you, but keep in mind that interest rates will likely be higher, as they will pose a higher risk.

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