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Wednesday, July 8, 2009

Interest Rates For Personal Loans - What to Expect When You Apply For a Personal Loan!

If you are considering a personal loan for a purchase, emergency cash, or any other reason whatsoever, then you need to know what you should expect when it comes to interest rates for personal loans. You should understand that if you are looking for a good loan and you have good credit, then you can expect one thing, but if you are looking for a very fast loan or you have bad credit, then you can expect something completely different. Here are some personal loans and what you should expect.

First, it is important for you to know that if you have bad credit you cannot be very picky about your rate. This is due to the risky type of loan you are after and in most cases a bank or lender will either want to see that you have paid on a debt for at least 6 months on time, have some sort of collateral, or have a co signer with good credit. This is what it will normally take in order to get approved.

Second, if you need money in a hurry, then you are looking for what is called a payday loan or a cash advance. This is a shorter term loan that is meant for unexpected emergencies. The interest rates for personal loans on the payday loans are very high because they are such short term loans. The trade off is that you do not have to go through a credit check at all and the approval process can be done within an hour or two.

Last, when it comes to interest rates for personal loans if you have great credit you have to shop around like crazy or you will never get the rate you really can get. You have to understand that the person you speak with (the account executive or loan originator) is only authorized to give you a certain rate. When you bring a quote that is lower from some other lender they will have to go to the manager to get you a lower rate and this is what you want to happen. It is called working the system and it will get you the lowest rate.

Gressly_Stevens

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