Q. I want to take out a personal loan for $1,500. Will the bank ask me what it is for? Is buying a laptop and books for school a good enough reason? If not what is a good reason for a college student to take out a personal loan?

A. Whether or not the bank requires a reason for taking a loan depends on the bank and the specific credit product you apply for. If the product is a plain cash loan (without a designation) or a credit card, the only thing required is your credibility. Interest rates on such loans are of course higher to compensate the bank for the increased level of risk. In any case, your reason is absolutely valid for a loan.

Good luck!

Moni.

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