Bad Credit Unsecured Personal Loans – Payday Loan Fees Too High?
Posted on | February 24, 2010 | No Comments
Many bad credit borrowers who use payday loans may find that the fees are too high. If this is the case with you then you may want to do research on a bad credit unsecured personal loan. Instead of having to pay fees up front you will have to pay an interest rate over time through monthly payments.
It is very important sit down with a financial calculator and determine which loan type would be better for you. By using a payday loan you are going to have to pay the money upfront and you will usually pay $15-$35 for every $100 borrowed in fees. This can add up very quickly if you have borrowed several hundred dollars.
With a bad credit unsecured personal loan you will borrow a set amount of money and pay it back with interest. The amount you pay back in interest will be greatly determined by your overall credit score. If you have a good credit score you can get an interest rate as low as 12% on a personal loan.
Once again, it’ll be wise to sit down with a financial calculator and determine just what type of loan will save you the most money. It is very important to note that you will have to make your payments on time with each of these loan types as any missed payment will drastically increase the interest rate or fees.
Author: Alan Lake
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