Bad Credit Unsecured Personal Loan Interest Rates Above 12% but Alternatives to Cash Advance Payday Loan
Posted on | November 22, 2010 | No Comments
Heading into the Christmas holiday shopping season it is the case that millions of Americans will look to make Christmas gift purchases. Unfortunately, the economy has greatly struggled in the unemployment rate is above 9% which likely means that a large number of these individuals will purchase on credit rather than cash.
One way that many Americans have borrowed money with poor or bad credit is through a bad credit unsecured personal loan. Many of these individuals often wonder what the interest rate will be on this type of loan. It is generally the case that unsecured personal loans have an interest rate between 12% and 18% but those with very poor credit could see interest rates in excess of 20%.
When looking at bad credit options it is often the case that a bad credit unsecured personal loan is preferred over cash advance payday loan. Instead of having to pay this entire loan in full customers can make monthly installments in the form of principal and interest. With a cash advance payday loan the entire amount must be paid back with the customer’s next paycheck.
It is also the case that a payday loan comes with upfront fees. These fees are usually between $15 and $35 for every $100 that the customer borrows. Many people may not think that this sounds like a lot of money but it can add up very quickly when a significant amount of money is borrowed.
Before making any final decisions when it comes to borrowing money with bad credit it is always advisable to do research. There are several ways to borrow money in the current economic environment but it is important to understand the interest rates and fees can add up quickly especially when payments are not made on time and in full.
Author: Mike Garner
Tags: Bad Credit Payday Loans > Bad Credit Unsecured Personal Loans > cash advance payday loans > personal loan interest rates > unsecured loan interest rates > unsecured personal loans
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