What Are Personal Loans and When Are They a Good Idea?
There are many different loans out there intended for specific purposes. You could be taking out a mortgage to buy a home, using an auto loan to purchase a car, or taking out a small business loan for your startup.
A personal loan, however, can be for any of these things—or something completely different. Sometimes they’re a great idea, and sometimes not so much. Let’s dive in to what personal loans are, and how they are most commonly used.
What are Personal Loans?
Unlike an auto loan or a mortgage, which are secured by the asset being financed, a personal loan is typically unsecured. Its approval is based mostly on the creditworthiness of the borrower.
Personal loans come with far more risk for the lender than View full post…