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Digital News Report – Personal loans have helped Americans through tough times and emergencies. Unlike many other products offered by banks, the rates rarely change.
There are two basic types of personal loans: Secured and unsecured. Banks offer lower rates for secured loans and the final rate will depend on the loan amount, the term of the loan and the credit score of the borrower.
Unsecured personal loans are still available for people with poor or bad credit. Most banks will require collateral for people with a bad credit history. Cars and other valuables can be used as security for a loan. Vehicles can even be refinanced.
Only U.S. Bank made changes to their personal loan rates this week. The St Louis based bank lowered their base personal loan rate from 5.28% to 5.08%.
HSBC had a rate of 9.69% today. The bank has personal loan rates as low as 6.99% and as high as 12.39%.
Wachovia Bank had a rate of 9.12% in our survey. Their base rate was 6.99% and depending on the borrower’s credit history, could be as high as 11.24%.
Kaiser Federal Bank had a rate of 11.75% today. Their lowest offer was 4.99% and their highest offer was 18%.
Personal loans rates are usually higher than mortgage rates, but much lower than payday loan interest rates. Borrowers may want to consider these loan products before turning to payday lenders.
By: Tina Brown