Bad Credit Unsecured Personal Loans Offer Interest Rates Below 20% as Alternative to Cash Advance Payday Loans
Posted on | November 30, 2010 | No Comments
Over the last few years it has been the case that a large number of Americans have greatly struggled when it comes to personal finances. This is no surprise as the unemployment rate is above 9% and many people have exhausted their unemployment benefits. Some of these individuals will likely look for ways to borrow money before the Christmas holiday season.
When it comes to borrowing money with very bad credit a very common option is a bad credit unsecured personal loan. Many bad credit lenders will offer this loan type for an interest rate below 20% but it is important to understand that the interest rate is greatly determined by the individual’s credit score.
With a credit score that is very poor it could be the case that some borrowers receive interest rates in excess of 20%. Sometimes it is well worth it to take out an unsecured personal loan as an alternative to a cash advance payday loan. When taking out a cash advance payday loan customers will usually pay upfront fees between $15 and $30 for every $100 borrowed.
Even though this may not sound like a lot of money it can add up very quickly as these fees will reset each time a customer receives a paycheck and does not pay the loan off in full. This is one of the major differences in the personal loan and a payday loan. Payday loan must be paid back with the customer’s next paycheck while a personal loan will be paid back in monthly installments much like a car loan or a home loan.
No matter what the case when it comes to personal finances it is always important to do research and understand how each of these processes work. By doing a little bit of extra homework it will likely be the case that customers end up saving money in the long run as they will know how to avoid many of the problems that occur when it comes to borrowing money with bad credit.
Author: Heather Best
Tags: bad credit loan rates > bad credit loans > Bad Credit Unsecured Personal Loans > personal loan interest rates > personal loans unsecured > unsecured personal loan interest rates
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