Bad Credit Unsecured Personal Loans Compare to Cash Advance Payday Loans with No Credit Check

Posted on | September 27, 2010 | No Comments

Bad credit unsecured personal loans have become very popular when it comes to borrowing large amounts of money even with very poor credit. Many borrowers would like to know how these personal loans compare with cash advance payday loans that have no credit check. It is important to understand that personal loans generally require the credit check process.


After the credit check process has been completed will be determined what interest rate will be applied to a bad credit unsecured personal loan. Personal loan is very similar to a mortgage loan or car loan and that it will be paid back in monthly installments that include interest and principal. The average interest rate for a personal loan is between 12% and 18% but that is for borrowers who have a decent credit score.

The cash advance payday loan process does not involve a credit check but it is important to realize that there are fees that must be paid for a payday loan. These fees will usually range from $15-$35 for every $100 borrowed. This may not seem like a significant amount of money but it can add up very quickly when several hundred dollars borrowed. It is also the case that these fees will reset each time alone is not paid in full with the next paycheck.

Author: Mike Garner

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