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Digital News Report – More people are taking out personal loans, according to the Federal Reserve. Personal loans can be secured or unsecured and they include auto loans and other consumer credit.
Revolving credit, like credit card debt, decreased but non-revolving credit increased 4.2% to $1.606 trillion (from Oct – Nov).
Citibank is offering unsecured personal loans. Their rate starts at 10.49%. The rate will depend on the borrower’s credit score, the amount of the loan and the use of the loan. Their top rate is 25.49%.
Auto loan rates are usually lower than unsecured personal loan rates. New car loan rates are lower than used car loans.
Bank of America had rates starting at 3.09%.
Chase had personal loan rates starting at 4.99 percent.
SunTrust had rates starting at 3.99%.
Some banks will encourage borrowers to become deposit-customers. They will also persuade borrowers to provide collateral. The extra security can help some borrowers qualify for a loan.
By Tina Brown