More people are currently taking out personal loans than at this time last year. However, the current figures are lower than the numbers for this time in 2009. The upward trend for 2011 is causing concern with some experts. During the last quarter of 2010, the outstanding consumer credit figure was $2.410 trillion, while the quarter before, it was $2.404 trillion.
An assortment of personal loan products is offered by financial institutions. Some of these loans are unsecured and others are secured by assets like furniture, a car, or the home.
Though the borrower credit score is important, even people with poor credit can be approved for a personal loan. According to a recent report, banks are slightly loosening their standards and returning to subprime lending.
HSBC is currently offering a personal loan with a rate of 9.69 percent. The starting rate is 6.99 percent, going to 12.39 percent at the upper end. SunTrust personal loans start at 3.99 percent and reach 12.99 percent.
Capital One Bank has a secured personal loan with a 2.99 percent starting rate. The rates for unsecured loans are higher and the cost of the loan is affected by the principal amount.
A new car auto loan usually carries the lowest personal loan interest rate. Unsecured bad credit auto financing can be obtained at higher rates. Though these rates are not as good, due to the poor credit of the applicant, they are lower than rates for payday loans.
Individuals may also consider cash advances when seeking a personal loan, but rates will also be high.
Anyone who finds the need for a personal loan should consider those offered by the banks mentioned above. Prospective borrowers should also research rates for payday loans, cash advances, and loan products offered by other banks.
If the loan will be used to purchase an automobile, good and bad credit auto financing is provided by various institutions.
