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Technically, you can, but a personal loan isn’t a great option for purchasing a home or making a down payment in most cases. Instead, you’ll generally be much better off with a traditional mortgage.

Yes, it is possible to buy a car with a personal loan. However, because personal loan interest rates tend to be higher than auto loan rates, buying a car with a personal loan is not always an ideal solution. More often than not, a traditional auto loan will be the far better option.

From building credit to consolidating debt, personal loans can be financially advantageous. However, they can also lead to more debt and can negatively affect your credit score if you aren’t careful.

Although it’s possible to get a personal loan with bad credit, people with bad credit should expect to pay a higher interest rate and fees to get the loan. Credit unions have more flexible lending requirements than banks, making it easier to get approved for a personal loan even with bad credit.

Of all the factors determining your ability to borrow, credit score is one of the most important. While there’s no specific minimum credit score needed for a personal loan, you will get a better interest rate with a higher score.

Personal loans come in a wide range of amounts, from $1,000 up to $100,00. However, those are extremes. Most lenders offer personal loans somewhere in the middle. The dollar amount of your personal loan will depend on several factors including your income and credit score.

Yes, you can. Whether you’re looking to lower your monthly payment, get a lower interest rate, or reduce your loan term, refinancing your personal loan could be a good option. However, you’ll likely pay some fees, which may include a prepayment fee on your original loan. Note that CU SoCal does not charge prepayment fees on any loans.

Getting approved for a personal loan depends on several factors, such as the lender’s requirements, your credit score, and the application process. In some cases, you might be approved for your personal loan the same day you apply; in others, it could take as long as a week.

There are two types of personal loans, unsecured and secured. An unsecured loan doesn’t require the borrower to pledge any collateral to secure the loan. A secured personal loan requires an item of value (such as a car or house) or a savings account be pledged as collateral to “secure” the account.

Money borrowed through a loan is not income, and therefore not taxable or tax deductible. So, for the most part, the interest paid on personal loans is not tax deductible. However, there are certain scenarios that allow for personal loan interest to be deducted on your taxes (e.g., business expenses, taxable investments, etc.).

A personal loan will indeed affect your credit, but whether a personal loan will improve your credit score or not depends on your ability to meet your monthly payments and eventually pay off the debt in full. As long as you make your monthly payments on time, and in full, that personal loan will help build your credit score. However, making late payments or stopping payments altogether will harm your credit score, whether for your personal loan or on other debt that you have.

1. The $1,500 More Than a Grand in Your Hand (MTAG) Loan with a rate of 11.99% APR for a 24-month term, is offered to qualified CU SoCal Members. The approximate monthly payment for $100 with a 24-month term at 15.99% APR is $4.93. All new accounts will be verified through ChexSystems® and are subject to approval. For Membership or checking account terms and conditions, please visit CUSoCal.org. Member must submit most recent paystub from Preferred Partner employer. Account(s) and loan(s) must be in good standing. If you’ve had any CU SoCal loan delinquencies, you may not qualify. Must have a payroll direct deposit of $750 into a CU SoCal Checking Account or be a CU SoCal Member for more than 6 months. Offer is subject to change. Must be 18 years or older.