What to Know about Personal Loan Rates Today |

Personal loan rates can be used for just about anything and their interest rates tend to be higher than those taken out on a home are. This is because a personal loan does not require collateral. A no-collateral loan means the lender has no specific item to lay claim to should the borrower default.  While one can take out a personal loan for just about anything, according to a recent survey by Prosper.com, 49% of people with these types of loans are using them for debt consolidation. This gives them one payment, instead of several.  Another popular use for these unsecured loans are for enhancing a property or paying for important things such as education.  16% of borrowers are using their personal loan to get their business venture off the ground.

Because no collateral is necessary, it is a relief to those who may worry about the possibility of losing their home or other personal property should they default. When requesting for the loan, borrowers use their income as proof they will be able to pay. For those that already have a good relationship with their financial institution, the lender may actually send out an invitation to apply.  Today’s interest rates for personal loans are around 10%, but according to Rebuild.com, if you have poor credit your rates maybe be around 25%.

Before borrowing online became an option, individuals would go to their bank or credit union in person and fill out an application. Now, it is still possible to apply with a bank, but there are also websites that will match individuals with lenders online. Borrowers never have to leave home.

Not all personal loan rates are created equal. Payday advances are short-term solutions to those in need of quick cash. The rates for payday advances today generally fall under a dollar amount per every hundred borrowed. So instead of a percentage, it might be $12 owed per each $100 loaned. One may request these types of loans online, in a check-cashing center or payday loan center. With proof of income, the borrower is given a date to repay. This date usually coincides with their next payday. The amount varies, but never runs more than a few thousand dollars. Applicants receive the money in a very short time. It might be in as little as a few minutes, but rarely as long as 24 hours. It may be paid at the center or deposited directly into the bank account of the borrower.