The Worst Personal Loan Rates in the U.S.

NEW YORK (RateWatch) – An oft-overlooked solution for those looking to borrow money is the unsecured personal loan. Because it’s unsecured, there’s no need to put up any kind of property as collateral, which makes it ideal for those without a home (or homeowners uncomfortable borrowing against their home equity). It can also be an easydebt consolidation option for those who want to turn their multiple debts into one monthly payment.

Still, borrowing without collateral comes with a price: higher interest rates. While many financial institutions will offer unsecured personal loans with rates in the high-single digits, other banks will charge rates that make even the worst credit cards pale in comparison. And if you have a poor credit score, don’t expect to get a good rate if you get a loan at all.

Using data gathered by RateWatch, we ranked the top 10 worst personal loan rates in the country. Not surprisingly, the list is dominated by southern states, which tend to have worse credit scores. Lousiana and South Carolina, whose banks make up half of the top 10, both placed in the bottom five in a recent ranking of the states with the worst credit scores.

Here are the top ten highest interest rates on unsecured personal loans in the US, in descending order of APR. Please note that there is a four-way tie for first.

Bank: Gibsland Bank & Trust Company
Fixed Minimum Interest Rate: 36% APR
Loan Amount: $0-$1,000
State: Louisiana

Bank: First American Bank & Trust
Fixed Minimum Interest Rate: 36% APR
Loan Amount: $1,000-$1,400
State: Louisiana

Bank: Concordia Bank & Trust Company
Fixed Minimum Interest Rate: 36% APR
Loan Amount: $0-$999
State: Mississippi

Bank: Conway National Bank
Fixed Minimum Interest Rate: 36% APR
Loan Amount: $0-$299
State: South Carolina

Bank: Concordia Bank & Trust Company
Fixed Minimum Interest Rate: 33% APR
Loan Amount: $1,000-$2,499
State: Mississippi

Bank: Mountain Valley Bank
Fixed Minimum Interest Rate: 31% APR
Loan Amount: $75-$1,000
State: West Virginia

Bank: Davis Trust Company
Fixed Minimum Interest Rate: 31% APR
Loan Amount: $0-$1,999
State: West Virginia

Bank: Ouachita Independent Bank                       
Fixed Minimum Interest Rate: 30% APR
Loan Amount: $500-$999
State: Louisiana

Bank: West Union Bank
Fixed Minimum Interest Rate: 30% APR
Loan Amount: $500-$750
State: West Virginia

Bank: First American Bank and Trust
Fixed Minimum Interest Rate: 27% APR
Loan Amount: $1,401-$2,500
State: Louisiana