How to Compare Unsecured Personal Loan Rates

Video Transcript

"Hi, my name is Matt McKillen. I'm with Innovative Financial Group. A question posed to me today was, "How do you compare a personal unsecured loan rates?" Again, there's a lot of lenders out there that are in the loan business. Probably the thing you want to look at first when you're anticipating taking a note loan or a unsecured loan, is what is the interest rate. My experience states that usually if you're taking an unsecured loan, it is a higher risk for the bank, so generally the interest rate is higher. And it's amazing how interest rates can flux from one institute to the other. You may get a five percent rate from one bank and then you could turn around and go to a credit union and they may offer the same type of loan at eight or nine percent. So the rate is obviously one of the biggest concerns to look at. The second, might be to check to see if there's a prepayment penalty. Some lenders asses a penalty. If you pay the loan off too early, they can asses you with additional finance charge. These are just a couple of examples of ways to shop around and compare when you're looking for that unsecured personal loan. Again, my name is Matt McKillen. I'm with Innovative Financial Group."