Subprime Blogger

Your Mortgage News Source

Bad Credit Unsecured Personal Loans – Lower Rates Than a Payday Loan?

Posted on | November 13, 2009 | 1 Comment

A bad credit unsecured personal loan is something many bad credit borrowers are attempting to get in the current economy. Some of these bad credit borrowers want to know if they can get a lower rate on their bad credit personal loan than they could a payday loan. When you get a personal loan you are assigned an interest rate which is a little bit different than what happens when you get a payday loan.

When you get a payday loan there will be a fee that is applied to the loan rather than interest rate. In most states it is regulated between $15 and $35 for every $100 borrowed. The way this works is you write a post dated check for $135 for borrowing $100 check will be deposited when you get your next paycheck.

With a personal loan you borrow a set amount of money with an interest rate very similar to a mortgage or car loan. The interest rate can be quite high on these loans because many bad credit borrowers have no other options when it comes to borrowing money. There are actually several banks that have stopped doing this including Bank of America.

Banks have realized that these loans are very risky in some of the borrowers have no intentions of paying them back. It used to be the case that with any credit score you could get a personal loan. This was prior to the subprime mortgage crisis and credit crisis. Now things have changed drastically and it is extremely hard to get a relatively low interest rate on any type of personal loan.

There are many companies out there that are willing to work with you if you have bad credit loan personal. Please understand that the interest rate you get is going to directly relate to your credit score. The lower your credit score is the higher the interest rate will be. The best thing you can do to get a lower interest rate is take the necessary steps to increase your credit score.

Please make sure to return to Subprime Blogger for all your mortgage and financial news. To stay up to date on the current state of finances make sure to bookmark the current news category below.

Current News

Author: Jesse Wojdylo

Category: Bad Credit Unsecured Personal Loans

Comments

One Response to “Bad Credit Unsecured Personal Loans – Lower Rates Than a Payday Loan?”

  1. alan
    November 21st, 2009 @ 5:09 am

    many personal loans companies have a low rate.

Leave a Reply





    • Subprime Blogger is Digg proof thanks to caching by WP Super Cache!