Rates for personal loans are based upon different variables. The first is the type of loan that is best for you and you should consider the good and the bad for each. The first personal loan type is a SECURED loan. A secured loan involves attaching some sort of collateral to the loan such as a vehicle, a home or other depending on the size of the loan. The second type is an UNSECURED loan which is not secured against the loan amount borrowed. This type of loan is given based upon credit history, loan amount, and your monthly term.Altogether the amount and your monthly term will equate your base rate. The other factor that determines your rates is your location (State and City). Currently at the time I am writing this, the national rate average for personal loans is 6.80% for the low, 11.83% for the average and 21.00% for the high.
Other than the amount you want to borrow, the loan type, base rate, length of loan (usually between 12 - 36 months), you have your points percent and whether it will be a fixed and adjustable loans. Fixed loans are generally cheaper than adjustable loans.
The FINANCIAL INSTITUTION that you choose also plays a very big role in getting the best rates. I did a search for an $5K unsecured personal loan (36 mos.) in Indianapolis, Indiana. Rates range up to 14.240% and fees can be as much as $165. Some lenders would even allow for 1, 2 or 3K minimum to be lent. I also searched other states and cities and found similar results but one lender stood out to be the lowest with NO fees that was PenFed with a 7.99% base rate.
Article Source: http://EzineArticles.com/?expert=Steve_J._Jackson
