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Digital News Report – More Americans are making use of personal loans in the United States. Rates have been relatively stable while banks look for ways to profit during this economic downturn.
The latest figures show that credit card usage is down while consumer / personal loans are up. Last week the Federal Reserve reported that there was $1.606 trillion in outstanding personal loans, up from $1.601 trillion. Their latest figures are for November 2010.
This week we found only two banks changing their base personal loan rates. The final rate will depend on the borrower’s credit score and loan amount.
Nationwide had a base rate of 6.45%. Customers with poor or bad credit will pay more. The bank may also require collateral.
Wachovia had a rate of 9.12%. Their base rate was 6.99%.
Union Bank had unsecured personal loan rates starting at 9.0%. Depending on the credit of the borrower, the rate could go as high as 19.045%.
Some banks encourage customers to refinance their vehicles. This could lower the interest rate, but borrowers would be placing their vehicle at risk of repossession.
By Tina Brown