Should I take out a personal loan to invest?

Measure the risk before you bank on a reward. (iStock)

Personal loans are a popular form of debt. The total amount Americans borrowed using this type of financing reached a high of $162 billion in the first quarter of 2020, per TransUnion.

Personal loan interest rates are near all-time lows, so you may be tempted to take out a loan for a variety of reasons — but what about investing? Depending on your credit score, some borrowers could qualify for a personal loan as much as $100,000.

Before you build wealth by investing borrowed money, here’s what you need to know.

Is using a personal loan to invest a smart move?

Consumers can take out a personal loan and invest the money — but whether that’s a good idea depends on your financial situation or goals. It can be a huge gamble, yet can also pay off if

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Can you take out a second personal loan?

There are many unexpected life events that can trigger the need to take out multiple personal loans at once. Personal loans are often used to consolidate other debts or make large purchases. But when you already have one personal loan and find yourself in a situation where you need another, what should you do? How many personal loans can you have at once?



a person wearing glasses sitting at a table using a laptop: Woman works on laptop


© Branislav Nenin/Shutterstock
Woman works on laptop

The short answer is that you can take out more than one personal loan simultaneously. But just because you can doesn’t mean you should, as it can seriously impact your credit score and overall financial health.

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Can I take out two personal loans at the same time?

The

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Can a Personal Loan Help You Cope Financially During This Covid-19 Pandemic?

A lot of people are getting into financial straits because of the COVID-19 pandemic. Due to the measures to flatten the curve of those people infected, governments around the world have mandated to stop many businesses from operating, which led to millions of people losing their jobs and experiencing a significant decline in their income. 

Many households can barely pay their utility bills because they don’t have enough money for such expenses. Plus, the additional costs of buying the required technology for the remote schooling of their children – another feature of the “new normal” – put a heavy burden on the finances of the families that are badly affected by this health crisis. 

For those who don’t have sufficient savings and are struggling to pay for important expenses, you can go to online lenders like GoodCheddar to obtain a personal loan. Here’s what you should know why this loan

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Should You Get a Personal Loan to Pay the Bills?

A stressed woman sitting at her dining table and looking through her bills and receipts with her head resting in her hand.

Image source: Getty Images

Right now, for millions of Americans, times are tough. It’s understandable if you can’t pay the bills with the country in a recession and COVID-19 still a serious threat. But you’ll need to explore solutions to help you get through.

One option is to secure a personal loan. While this approach can work, it’s not necessarily the right option for everyone. Here’s what to consider to help decide if it’s the best approach for you.

Can you qualify for a personal loan?

If you’re thinking about borrowing to cover the bills, the first big question is whether you can qualify.

Lenders typically check your credit score and sources of income when deciding whether you can borrow, how much you can borrow, and what rate you’re charged to borrow. If you’re struggling to make ends meet because of a lack of income, you may not be approved

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3 Bad Reasons to Get a Personal Loan

Don’t get a personal loan for the wrong reasons.

Personal loans are often a good way to borrow. You can use the loaned money for anything you’d like, and the loans come with a fixed repayment schedule, so you’ll know the costs of borrowing up front as well as the payoff date. The interest rate is also usually well below what you would pay on a credit card (unless you qualify for a special promotional rate).

But that doesn’t mean it’s always a good idea to get a personal loan. In fact, there are plenty of circumstances in which it doesn’t make sense to take on this type of debt. Here are three of the worst reasons to take out a personal loan.

1. Because you don’t have your spending under control

If you are trying to live well beyond your means, a personal loan can, theoretically, provide you with

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Can I get a personal loan if I have student loans?

When you have student loans, getting a personal loan can be tricky. Lenders may see you as a risk. But there are ways to improve your chances of qualifying. (iStock)

If you’re a student loan borrower, it likely that you have significant student debt — even with the forbearance options currently available.

In the 2018-2019 academic year, the average student loan at private for-profit colleges and universities was $7,614. The average student loan was $8,100 at private non-profit schools and $6,483 at public schools, according to Statista. Total student loan debt in the U.S. for the 2018-2019 school year totaled a whopping $106.2 billion. When you consider that it takes about 52 months to graduate with a bachelor’s degree, it’s easy to see how debt can really add up.

With all that student debt, you may not want to take on more — but you may have to,

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LendingClub Studies Reveal Customers Prioritize Personal Loan Payments Over Credit Cards, Helping Them Progress Towards Financial Health

SAN FRANCISCO, Sept. 22, 2020 /PRNewswire/ — LendingClub Corporation (NYSE: LC), America’s largest online lending marketplace connecting borrowers and investors, today released findings from two recent studies on member financial health and payment behavior before and during the novel coronavirus (COVID-19). Conducted in January and June 2020, the studies sought to understand member behavior before and during the coronavirus-driven recession and how they make decisions regarding prioritization of bills and expenses in relation to their long-term financial goals.


Lending Club, the world's largest online marketplace connecting borrowers and investors. (PRNewsFoto/Lending Club) (PRNewsFoto/Lending Club)

The key takeaway: Customers are prioritizing personal loan payments over their credit cards. These findings support recent assertions from TransUnion suggesting that personal loan delinquency rates were either in line with, or performed better than, credit cards across most credit tiers during the Great Recession.

The findings show that:

  • Despite their overall high levels of income ($90,000 average) and healthy credit profile (700 average), financial stress affected the day
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How a Personal Loan Could Help You Get By During COVID-19

If you need money during the pandemic, a personal loan could be a good solution.

Americans are struggling financially during the COVID-19 pandemic. Millions have lost their jobs. Many have seen their incomes decline. And others are dealing with sudden expenses, like child care because schools are remote or the additional technology costs of working from home.

If you’re having a hard time covering your basic bills or paying for sudden expenses and you don’t have a savings account to tap, then borrowing money may be your next best bet. And in that regard, a personal loan can really help.

What’s a personal loan?

A personal loan lets you borrow money for any reason you might need it. You can take out a personal loan to pay off another debt, cover home repairs, or simply keep up with your general bills.

Personal loans are unsecured — they’re not tied to

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Is your SBI home, personal loan eligible for restructuring? How to check online

SBI’s retail customers upon logging in the portal will be asked to key in their account number. After completion of OTP validation and inputting a few necessary information, the customer will come to know their eligibility and receive a reference number. This reference number will be valid for 30 days and within which time customers can visit the branch to complete the required formalities.

C.S. Setty, Managing Director (Retail & Digital Banking), SBI expressed the hope that with the launch of this portal, the customers will find it operationally convenient to check their eligibility before they go to a branch.

Under this resolution framework framed by RBI, such borrowers are eligible whose loan accounts were classified as standard and not default for equal to or more than 30 days as on 1 March, 2020, and their incomes are impacted by Covid-19.

Retail customers will be offered a simple option to

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Warning Signs of Personal Loan Scams

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Interest in personal loans is rising this year, industry experts say. 

Unfortunately, potential scams are rising too.

Amid record-breaking unemployment rates and a staggering economy, consumers are seeking personal loans for two primary purposes: to consolidate credit card debt or simply to get by, says Brian Walsh, CFP and senior manager of financial planning at SoFi, a national personal finance and lending company. 

“This is a way to help get them through until they get back to normal,” says Walsh.

Scammers have taken notice. In the first four months of 2020, the Federal Trade Commission (FTC) reported more than 18,000 accounts and more than $13.4 million

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