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Imagine this: you pay a bank to hold your money in a savings account instead of the other way around. It sounds counterintuitive, but with the coronavirus throwing the global economy into a tailspin, some banking systems in other countries are offering negative interest rates on savings accounts and loans—and some economists say negative rates could make their way to the United States. Here’s what you need to know about negative interest rates and how you can use them to make money. How do negative interest rates work? Banks in Europe and Japan are using negative interest rates to stimulate their economies by offering incentives for consumers to borrow money. Normally, a borrower pays a lender interest while they repay a loan, such as a mortgage. But amid today’s shaky economy, some banks are offering negative interest rates to customers who borrow money, such as to buy a house or a new car. This helps consumers chip away at their debt—encouraging people to spend and borrow...

Social Security benefits can provide financial help through retirement, disability or hardship. While the income can help you pay your bills, there may be a time when you need to take out a personal loan. Lenders look at your credit score and income, and if you’re on government benefits it could be harder to qualify. Before you apply, you’ll want to understand how Social Security impacts your credit and eligibility. How to get a personal loan while on Social Security Qualifying for a personal loan while you’re on Social Security is similar to qualifying for a loan in general. Since personal loans are often an unsecured form of debt, lenders take a close look at your credit score to measure your creditworthiness. You’ll need to have demonstrated a history of paying your bills on time and have a low debt-to-income ratio, which is the percentage of your monthly gross income that goes toward paying any of your debts, such as a mortgage or credit card. Lenders will also look at ...

Situations can arise where you need to take out a personal loan. You may have to make an unexpected purchase or you may want to consolidate your debt into one payment. But sometimes one loan may not cover your needs, especially if those needs change. While there isn’t any federal regulation that prohibits how many personal loans or personal lines of credit you can have, some lenders set their own limits. It’s a good idea to understand how many personal loans you can have before you apply—as well as what they can say about your financial wellbeing. How many personal loans can you have at once? This is up to the lender. Some will allow two active loans at the same time with a predetermined combined balance. Others will allow you to apply for a second personal loan after you’ve made on-time payments for six consecutive months. “One reason one might consider taking multiple loans out is if they don’t qualify for the full loan amount at one institution,...

Small and medium businesses have borrowed more than $150 million from the Commonwealth Bank as they battle the effects of the coronavirus pandemic. The loans are part of the federal government’s Coronavirus SME Guarantee Scheme, which became available on March 23. The government guarantees 50 per cent of the loan amount. Commonwealth Bank says more than 1,850 traders have taken loans and nearly 70 per cent of the businesses are from NSW. Hospitality operators accounted for 15 per cent of the businesses receiving loans followed by construction (13 per cent), professional services (12 per cent) and retail (11 per cent). The hospitality sector has been among the hardest hit by restrictions on public gatherings to slow the spread of the virus. Most banks last month announced a host of measures, such as the scrapping of fees and postponing repayments, to help businesses and individuals. Australian Banking Association chief executive Anna Bligh says borrowers who opt for a ...