Bad Credit Unsecured Personal Loans – Interest Rates vs Cash Advance Payday Loans in August 2010

Posted on | August 19, 2010 | No Comments

Bad credit unsecured personal loans offer many Americans the opportunity to take out up to $15,000 cash with a decent credit history. Many people wonder what the incentives are for a bad credit unsecured personal loan versus a cash advance payday loan. One of the big differences in these loan types is that there are interest rates apply to personal loans while fees are applied to payday loans.


The interest rate borrowers will qualify for will be greatly determined by their credit score and credit history. It was a very good credit score some borrowers could find interest rates as low as 12% owner personal loan. With a very bad credit score they could find interest rates higher than 20%. For a cash advance payday loan it is generally the case that fees are $15-$35 for every $100 borrowed.

It is very important to understand that payday loans must be paid back with the next paycheck. Bad credit unsecured personal loans will be paid back in monthly installments rather than all at one time. This is why it is very important to analyze the current financial situation and decide which loan type is correct. It is also the case that payday loan fees will reset each time the loan is not paid off with the next paycheck.

Author: Tiffany Mann

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