Digital News Report – Banks are beginning to make more personal loans while credit card companies tighten credit. The most recent data provided by the Federal Reserve indicate that revolving debt (credit cards) has declined while non-revolving credit (personal loans) has increased.
While government analysts say the inflation rate is near zero, consumers are realizing major increases in their grocery bills. Gas an other commodities are also increasing.
One small emergency can cause financial problems. Depending on the borrower’s credit history, there may be several options. Payday loans have an extremely high interest rate. For most people, a long term personal loan is desirable.
Union Bank had an unsecured personal loan rate starting at 9.0%. Depending on the credit score, the rate could be as high as 19.138%.
It may help to have a bank account with the lending institution making the loan. Some banks will give priority to their current customers.
Bank of America has rates starting at 3.09%.
Nationwide Bank had rates starting at 6.45%.
Citibank had unsecured personal loan rates starting at 10.49%. Some borrowers may pay up to 25.49%.
By Tina Brown