Digital News Report – The holiday season has put many Americans in a financial bind but monthly bills will continue to arrive in January. While interest rates depend on the borrower’s credit history, there are still loans available to people with bad credit.
On average renters spent about 23.99% of their income on personal loan financial obligations in November, according to the Federal Reserve. In October the total amount of consumer credit increased 1.7% but the amount lent for personal loans increased 6.8% more (annual rate).
Typically personal loans carry a much lower interest rate than payday loans. The interest rate for a payday loan can sometimes exceed 300% (APR).
SunTrust is offering personal loans starting at 3.99 percent. The interest rate will depend on the loan amount, the use of the money and the credit history of the borrower. The interest rate could be as high as 12.99%.
KeyBank had a rate of 6.29%.
There are several types of personal loans. Some borrowers use a car or other valuable to secure the loan. New car loans will usually have a lower rate than a used car loan. Some lenders will make personal loans without any collateral.
Chase Bank is offering personal loans starting at 4.99%. Last week the starting rate was 4.79%.
Wells Fargo had a rate of 15.10%. Depending on the borrower and type of loan, the rate could be as low as 4.49% and as high as 18.72%. Last week the top rate was 18.74%.
By Tina Brown