Personal Loans More Common than Revolving Credit

A new survey has suggests that using personal loans are more common nowadays instead of revolving credit.

Revolving credit, which is being offered by merchants like department stores, appliance stores, and others, usually carry a high interest rate and most of them offer very low payments that give the consumer an incentive to be stuck with the debt for several years.

The new survey, which is good news for consumers, revealed that this is a great time to get personal loans as there may never be a time like this because finance companies are hurting for business, so they are reducing their interest rates. In fact, various lenders are suggesting consumers to take advantage of it as some banks are charging as little as three or four percent interest.

However, consumers with bad credit have not quite so good interest rates as many banks are charging over 25 percent interest for consumers with credit problems.

The new survey concluded that consumers who have credit that is good enough to get them a revolving credit line should be able to get an unsecured personal loan as well and those who already have revolving lines of credit would do well to get a personal loan to pay them off as the savings over time can be enormous.

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