Comparison Shopping for Personal Loans
A recent article from Mirror.co.uk has brought about the reminder that we all need to comparison shop when looking for personal loans. While this was a case in the UK you can bet that things are similar in the US to some degree. The article was about Katherine Winnel who wanted to get a personal loan. Her bank offered the loan at 19 percent and other lenders wanted to offer 18 percent. A few of the areas she searched were willing to offer her a loan for 13 percent. It all seems expensive, right? That is what Winnel thought, so she continued to search until she went onto Zopa and found a loan for 11 percent for five years with 65 pounds per month in payment. The loan also lacks any prepayment penalty.
For anyone who has been paying attention to the US market you know that mortgages are offered at under 5 percent right now if you have excellent credit. Personal loans because they are different may have higher interest rates. Personal loans can be secured or unsecured. The higher interest rate loans will be unsecured. The article doesn’t tell us what Winnel was looking for, but the fact that she could get a loan for 11 percent when banks were offering 18 percent and over is a good indication of why you need to comparison shop in the US too.
By looking at all avenues where you can get a loan chances are you can find one that is willing to give you a better interest rate. You still need to examine the documents before you sign them and ensure there is nothing hidden about the loan.
Keep in mind that personal loans from banks can offer you a better interest rate than short term loans such as payday loans now. This type of loan has the highest interest rate, even higher than credit cards in some cases. So, you should be wary of the type of loan you obtain. The best option is a secured personal loan to find the best and most affordable interest rate.
