Bad Credit Unsecured Personal Loan Interest Rates Between 12% and 18% in August 2010

Posted on | August 26, 2010 | No Comments

Bad credit unsecured personal loans have gained in popularity over the last several years as it has become an easy way to borrow a significant amount of money. The average interest rate for a personal loan is usually between 12% and 18% but please remember that this interest rate is greatly determined by a credit score. With a very bad credit score it could be the case that interest rates are over 20%.


It is also very important to understand that any type of unsecured loan is much more risky than a secured loan so I may be a wise decision to seek secured personal loans rather than an unsecured personal loan. Banks and lending institutions realize that unsecured personal loans may default therefore they apply a much higher interest rate.

Before making any final decision when it comes to a bad credit unsecured personal loan it is always wise to step back and look at financial situation. If it has been very difficult to make bill payments in the past then it may not be a wise decision to take out another line of credit as it could just compound the problems when it comes to personal finances.

Author: Mike Garner

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