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Digital News Report – Personal loans are used for emergencies and unexpected expenses. Unsecured personal loan rates are typically higher than mortgages and other secured loans.
More Americans are using consumer credit, including personal loans, auto loans and credit cards. The interest rate for a secured personal loan, like a car loan, is usually lower than unsecured personal loans.
Consumer credit increased 3.0% in December, according to the latest results from the Federal Reserve. Credit card usage was up 3.5% while non-revolving credit was up 2.8%.
Citibank has not changed their personal loans since our last survey. The bank is offering unsecured personal loans starting at 10.49% APR. Their upper-end rate is 25.49%.
The interest rate will depend on the borrower’s credit score, the loan amount and the use of the loan. New car loans can carry an extremely low rate.
Chase Bank had rates starting at 4.29%.
HSBC had rates starting at 6.99%. Their upper end rate was 12.39%.
By Tina Brown