June 7, 2023
WalletHub recently published an article featuring Assistant Professor of Accounting, Jesse Chan, discussing his expertise on taking out personal loans with a credit score of 600 or less, a high-cost situation in which one should consider whether the loan would help generate enough incremental income to offset its cost.
Chan notes, “If borrowing a personal loan allows me to repair my car so I can get back to work and earn income, it might be a good idea. It is probably not as great of an idea if the loan winds up being used to finance something that does not generate sufficient incremental income, like a vacation or a gift.”
In addition to browsing lending methods at hand, Chan advises you to consider options such as credit unions and banks where you already do business.