At What Interest Rates Are Loans Issued in Florida
Credit is a convenient financial instrument if you use it correctly. Borrowing money requires responsibility, discipline, and the right approach. If you want to avoid bad credit history and fines caused by the agreement violation, you need to learn all the details of the deal. Today, we invite you to discuss the interest rates applied by various financial institutions in Florida. Let’s start!
Interest Rates Applied by American Banks
Residents of Florida can open a credit line at one of the local banks and get a credit card for personal use. For example, Bank of America offers a credit card with a variable annual APR of 12,99%-22,99%. There is also a 3% commission for money transfers. This is the most regular offer that you can get.
If you need more money than you can get within the credit card limit, there are also home loans, auto credits, and so on. The rate will be 2% – 2.8% per annum for a mortgage, and 2.19% – 5.49% per annum for auto loans.
Interest Rates Applied by MFIs
MFIs offer Florida residents a wide range of credits for various needs. The interest rate varies depending on the employment status, credit history, amount of money credited, and other criteria. In general, MFIs are more loyal to the customers, who didn’t receive a loan in the bank. Therefore, the interest rates will be also higher, for example:
- AdvanceSOS’s 300 dollar payday loan in Florida will cost you $352.95 if you take it for 14 days at a 1,26% daily rate;
- $500 emergency car repair loan for 10 days at a 1% daily rate will cost you $550;
- $300 title loans will cost you cheaper than payday alternatives due to a more affordable rate. So, if you take money for 14 days, it will cost you $345.20 at a 0.8% daily rate.
Key Aspects That Affect the Interest Rate
The interest rate is one of the main criteria by which potential borrowers evaluate loan proposals. Often, customers are guided by the lowest rate, but this is not always right. Interest rates may significantly vary depending on various factors. It is majorly influenced by the following criteria:
- the general economic situation in the country;
- credit strategy of each individual financial institution;
- selected parameters of the credit program;
- financial circumstances of the borrower.
The interest rate on a consumer loan is determined individually for each client. At the same time, the lender takes into account many factors:
- the borrower’s credit history;
- the fact of employment and the presence of a permanent income;
- the ratio of income and expenses;
- other circumstances.
Since each borrower approves the interest rate on a consumer loan personally, it makes little sense to compare the minimum rates in different institutions. It is more effective to seek advice from the lenders you are interested in and ask for a preliminary calculation taking into account your financial situation.