Digital News Report – Today’s consumers are experiencing declining debt obligations despite lower interest rates.
According to a report from the Federal Reserve, personal loan, car loan, and revolving credit loan rates are declining. The latest data show that consumer credit declined 1.75 percent in August.
Personal loans are divided into two categories: Secured and unsecured. Many consumers take out personal loans for cars, appliances, furniture or to cover an unexpected emergency.
The interest rate on an unsecured personal loan is much lower than a payday loan. The borrower is also given time to pay the loan off. Typically the term is 48 to 60 months. In some cases, the term could be as short as 36 months or as long as 72 months.
We make phone calls and check press releases to determine current rates. The interest rate will depend on several factors, including credit score. But even a borrower with a poor or bad credit history may qualify for a personal loan.
Union Bank had rates starting at 17.75 going up to 19.162 percent.
Securing the loan with collateral can help bring down the rate. Some banks offer customers the option of refinancing their vehicle.
Wells Fargo had a rate of 15.10 percent today. Depending on the loan, the interest rate could be as low as 6.24 percent or as high as 28.49 percent.
Key Bank had personal loan rates starting at 6.14 percent today.
By: Tina Brown