More people take out personal loans throughout the holiday season than at additional times of the year. Factoring inside your credit rating, obtaining an affordable personal bank loan for the holiday seasons could be more challenging now than in past holiday seasons. Interest rates might be low, but banks don’t like that, which is why they have been doing things with their money additional than lending. Source of article – The best way to find a personal loan for the holidays by Money Blog Newz.
Personal loans are hard to obtain occasionally
Obtaining a personal loan for the holidays might be more difficult this year. This is because the Federal Reserve's near zero percent interest rates are what the banks are borrowing. Banks are investing all that money for a profit instead of giving out unsecured loans, personal financing and other forms of lending like mortgages. The United States Treasury bonds being purchased by banks this year is an example of this. Banks have purchased $127 billion in Treasury's since the second quarter, while loans have decreased by $68.5 billion. The Fed ends up lending the banks money with almost zero interest just to have cash lent back at a higher rate of interest due to treasury purchases.
What to anticipate when you look for a personal loan
All this means that banks will not lend unless they absolutely have to. That means that individuals have to have really great credit scores to get personal loans. A good credit rating can get you 12 to 18 percent as an average interest rate. This is on most personal loans though. But if your credit is less than stellar these days, it doesn’t hurt to start with the financial institution or credit union where you put your money. A good relationship with a financial institution can help a lot. It will give your chances a boost. You are able to get a personal unsecured loan online if that doesn't work. However, a lower credit rating could result in interest rates as high as 20 percent.
Seasonal personal loan not the only choice available to you
An interesting choice to those high interest rates on a personal loan might be peer-to-peer lending. Peer-to-peer lending can be sort of nice. There isn't a bank involved at all. Consumers will lend cash to one another at peer-to-peer lending websites. On some peer-to-peer lending websites loan companies bid to offer borrowers lower interest rates. Lenders choose who they lend to and make loans from as little as $25 up to $25,000. Getting a personal bank loan for the holidays from a fellow consumer could land a competitive rate of interest without a perfect credit rating.
Info from
Credit Loan
creditloan.com/blog/2010/11/30/personal-loans-may-get-harder-to-come-by/
Forbes
forbes.com/forbes/2010/1220/investing-lending-club-credit-cards-personal-loans-for-fun.html
Subprime Blogger
subprimeblogger.com/2010/12/01/bad-credit-unsecured-personal-loans-gain-in-popularity-as-christmas-shopping-season-approaches/
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