Digital News Report – Personal loan rates are a little higher today compared to last week, but they are still at relative historic lows. The interest rates for a personal loan are much lower than for a payday loan.
The amount of revolving credit is declining while the amount non-revolving outstanding credit is increasing. The Federal Reserve estimates that revolving credit decreased from 806 billion to 800 billion from September to October while non-revolving credit increased from 1.589 trillion to 1.598 trillion. The October numbers are still preliminary while the September numbers have been revised.
People are charging less on their credit cards but are using personal loans more frequently. The typical term for these loans are 36 months to 72 months.
SunTrust is offering personal loan rates from 3.99% to 12.99%. Key Bank is offering personal loans starting at 6.29%.
The personal loan interest rate will depend on several factors including the borrowers credit score, the loan amount and the used of the loan. Banks will typically charge a lower rate for a secured loan. A car can be used to secure a loan and some banks encourage the borrower to refinance their vehicle to save money.
HSBC had a rate of 9.69%. Their loan rates begin at 6.99% and go up to 12.39%. Northern Trust had a rate of 7.5%.
By Tina Brown