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Digital News Report – Chase and U.S. Bank lowered their personal loan rates this week. Personal loans can be used to buy cars, boats or pay for unexpected emergencies. Unlike payday loans, personal loans carry a lower interest rate and can be paid off over time.
There are two types of personal / signature loans. Secured loans require collateral while unsecured personal loans do not. Secured loans may require more paperwork but usually carry a lower interest rate.
The interest rate will depend on the borrower’s credit score and the loan amount. The Federal Reserve has advised customers to check their credit report for errors before applying for a loan.
Last week Chase bank had personal loans starting at 4.77%. This week the bank lowered that rate to 4.67%.
There was a change at U.S. Bank too. Last week the bank had a starting rate of 5.28%. This week they lowered their rate to 4.75%.
Mutual of Omaha has personal loans starting at 5.79%.
The economic downturn has made signature loans more popular than ever. Typically the loan amounts start as low as $500. Some lenders will loan up to $25,000 or more, depending on the borrower’s credit history.
By Tina Brown