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3. Your personal loan rate is lower than an auto loan rate. Unsecured personal loan interest rates tend to be higher than auto loan rates. But if you have outstanding credit, you may qualify for a ...
For example, if you take out a car loan, you can only use it to buy a vehicle. Personal loans can be used for many purposes, from consolidating debt to paying medical bills.
A personal loan works a lot like an auto loan. You borrow money from a lender and pay it back in equal payments over a term of up to seven years. However, unlike a car loan, ...
Similarly, a loan taken out to buy a car may be secured by the car. The duration of the loan is much shorter – often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. In a direct auto loan, a bank lends the money directly to a consumer. In an indirect auto loan, a car dealership (or a ...
Dig deeper: Personal loan vs. home equity loan: ... Her expertise and analysis on personal, student, business and car loans has been featured in Business Insider, CNBC, Nasdaq and ValueWalk, among ...
A personal loan also may not make sense if it’s being used for a purchase that would qualify for a better loan type. Auto, student and mortgage loans often come with lower rates or longer terms ...
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