5 myths about personal loans debunked

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Personal loans have piqued the interest of a wide range of consumers in recent years.

Set up as an option for financing nearly any purchase, from a hot tub to a horse, these loans often range from $1,000 to $100,000 and can be paid back within 2 to 5 years.

“Going back in history, personal loans had the reputation of being a loan of last resort,” says Todd Nelson, business development officer at LightStream, a division of SunTrust Bank.

These days, some lenders allow you to complete the entire application process online, and you can receive funds in the same business day.

While personal loans may no longer be a last resort, you’ll want to fully understand your financial situation and the options available before getting one.

Here, experts lay out common misconceptions regarding personal loans. Read on to learn what’s really involved with a personal loan and how to get the best deal on this financing option.

If you’re looking for a personal loan, first check the offers on Bankrate.com.