 TITLE: Should I Get a 0% APR Card or Personal Loan? CONTENT: How Does a Personal Loan Work?\n------------------------------\nA personal loan is an installment loan you borrow at a fixed amount and pay back in equal monthly payments. These loans are often used to help pay a large one-time expense, such as a surgery, home renovation, a wedding or a business expense. They can also be used to consolidate higher-interest debt.\nMost personal loans are unsecured, meaning the lender doesn't require collateral. This differentiates them from secured loans such as mortgages or auto loans, where the item you're purchasing serves as collateral and can be taken away if you can't pay.\nWith an unsecured personal loan, you receive the loan in a lump sum. You repay it over a defined term (usually in years), typically at a fixed interest rate, so the monthly payments are the same. Once it's paid off in full, it's done.\nWhile some traditional banks such as Chase and Bank of America no longer offer unsecured personal loans, some still do, such as Citi and Wells Fargo as well as many smaller banks and credit unions. Additionally, online-only lenders such as Prosper, Upgrade, LendingClub and LendingPoint have emerged in recent years offering personal loans that can be disbursed to your bank account more quickly than loans from traditional lenders. END