Digital News Report – Personal loans have become more popular during the recession, according to data provided by the Federal Reserve.
There are benefits to a personal loan over a payday loan. Payday loans are very expensive and must be paid-off during the first payday period. Personal loans can be paid-over a longer period of time, usually between 36 and 72 months.
Personal loan rates were lower in August, according to a report from the Bank of England. This may not correlate to rates in the United States. The Federal Reserve found that personal loan rates in the United States also declining while the total sum of outstanding credit increased slightly.
There are two types of personal loans: secured and unsecured. Typically secured personal loan rates are lower. Customers can secure a personal loan with a car, boat or other valuable.
KeyBank (nyse:key) raised their personal loan rate today from 6.14% to 6.29%. This is their starting rate.
Bank of the West had rates starting at 4.99%. Bank of America had rates starting at 3.09%.
The loan rate will depend on the borrowers credit score. The loan amount can also be a factor.
By Tina Brown
We monitor personal loan rates on a weekly basis by making phone calls and checking press releases and websites.