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Business Loan vs. Personal Loan: Which Should You Choose?

CreditStrong for Business

If you ever default, they’d be able to collect by seizing personal assets. If you default, the lender will seize your pledged assets. And of course, if you’re looking to finance something that isn’t business-related, like medical bills, debt consolidation, or home improvements, you won’t be able to use a business loan.

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Business Loans Vs. Personal Loans: What to Know

Lendio

It can come in handy if you’d like to consolidate debt, fund a home improvement project, or pay an emergency expense, such as a car repair or medical bill. Flexible: A personal loan can be used to pay for a variety of personal expenses, like car repairs, medical bills, and home improvement projects.

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The Ultimate Guide to Investing With Peer-to-Peer Lending

Prosper

I’ve had past due medical bills [and] that unexpected car breakdown where you suddenly need three grand. Loans that have paid off, charged-off or are in default are not considered active. Many Prosper customers have had such positive experiences as borrowers, they choose to give back as investors.

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Home Equity Loans: Pros and Cons

Prosper

It’s a loan against your house, much like your mortgage, and is secured by your home in case of default. This makes a HELoan perfect for large renovation projects, medical bills, and other scenarios where you need a fixed, large sum of money. HELoans are a form of second mortgage. How Much Can You Borrow?

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Boosting Your Odds of Loan Approval

Due

Borrowers may use personal loans to subsidize medical bills, car repairs, wedding expenses, funeral costs, and home renovations. This can be reassuring for lenders, as it reduces their risk in case of default. Mortgage insurance is a type of insurance that protects the lender in case you default on your loan.

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Here’s Six Things You Need to Know Before Taking a Loan On Your 401(K) Retirement Plan

Due

Typically people will use a 401(k) loan to pay for smaller debt, such as medical bills or even car payments. Loan penalties Depending on your 401(k) plan and whether you may be permitted to take out a loan, you may be subject to penalty fees unless you are unable to repay the borrowed amount or default on your debt agreements.

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Employee Loans: Everything You Need to Know

Fundera

The promissory note will outline the loan’s repayment terms, including the payment amount, payment frequency, interest rate, and what happens if the employee defaults on the loan. Maybe they’re faced with unexpected car repairs, medical bills for a family member, or even something like a surprise furnace replacement.