How Do You Choose An Interest Rate For A Personal Loan?
A personal loan is an unsecured loan that may be funded by private investors, banks or family members. If you have weighed the pros and cons and have decided to fund a personal loan, you need to choose the interest rate for it. Find out competitive interest rates at Bankrate, which provides current rates for mortgages, autos, credit cards and investments. Lenders charge more for a personal loan than for a secured loan, but not as high of an interest rate as credit cards. Determine if the loan ends at the end of a set term or if it continues on a revolving term. Loans that also function as a revolving line of credit charge a higher interest than fixed term loans. Get a credit report for the person who wants the personal loan. A credit report tells you if a person pays their bills on time, how much debt the person has accumulated and the types of debt the person owes. Look at the person’s credit score, which factors in the credit history to provide you with an indication of the risk invo
