6 best personal loans of February 2022 | Smart Change: Personal Finances
How many personal loans can you have at a time?
Technically, there is no limit to the number of personal loans you can have at one time. That said, financial institutions limit the number of loans they are willing to give to a borrower at a time. These policies may vary depending on your particular situation. Also, the more debt you have, the less likely you are to be approved for a loan.
Can you use a personal loan for anything?
Some lenders restrict lending a little more than others and prohibit the use of funds to pay for college or contribute to retirement plans, among other things. Additionally, taking out a loan in someone else’s name or using it for any form of gambling – including investing – is prohibited with any type of personal loan.
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. Personal loans have lower interest rates than credit cards, with terms 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.