There are some factors used by lenders that go into pricing the interest rates on a personal Loans. These factors can broadly be broken down into two categories: The product you are seeking and your credit rating.
In many cases, it is the nature of the credit you are seeking that will determining to a large extent the cost of that credit. Unsecured credit is more expensive than secured credit. This is because the risk taken on by the lender with unsecured loans is greater. If you can provide your home or other property as security against the loan, then you are virtually guaranteeing to the lender that there will be sufficient funds to repay the loan. In exchange for this added security, the lender will be willing to offer you far lower interest rates.
The gamble, which … Read the rest...