Digital News Report – Personal loan rates in the United States are relatively low compared to some other parts of the world.
Low rate may be due to the competition. Banks, payday lenders and credit unions are all competing for business.
Today we found Wells Fargo Bank with an unsecured personal loan rate of 8.21%. This is for a 60 month term for $5,000.
The loan rate will depend on several factors, including the lending institution, the credit score of the borrower, the term of the loan and the loan amount. Some lenders will even make loans to customers with a poor or bad credit score, but at a higher rate. The interest rate will still be lower than the payday loan rates.
A car loan is secured by the car but is still considered a personal / consumer credit loan. Bank of America had rates starting at 2.99 percent today. Of course, new car loans will carry lower interest when compared to used car loans.
Some lenders recommend vehicle refinancing. Whether you decide to refinance your auto loan or apply for a brand new personal loan, you can save money by checking with your local bank first. Typically banks are more willing to loan to their depositing customers before non-customers.
By Tina Brown