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Millions of Americans have lost their jobs in the COVID-19 crisis. And even those who aren’t completely out of work may still be grappling with income loss. If you’re in that boat, you may need to borrow money in the near term to cover immediate expenses. That’s where a personal loan comes in.
How do personal loans work?
A personal loan is a loan you can use for any purpose. In that way, personal loans work much like credit cards — you can borrow money for whatever you need, but the interest you’ll pay on a personal loan will generally be much lower than what you’ll pay on a credit card. Additionally, too much credit card debt can hurt your credit score, whereas a personal loan won’t hurt it, provided you keep up with your monthly payments.