Which type of lender offers the lowest interest rates?A.Title lenderB.Credit cardC.Payday lenderD.Bank or credit unionSUBMITarrow_backPREVIOUS
Question
Which type of lender offers the lowest interest rates?
A. Title lender
B. Credit card
C. Payday lender
D. Bank or credit union
SUBMIT
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Solution
To identify which type of lender offers the lowest interest rates, let's analyze the options provided:
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Title Lender: Typically offers secured loans based on the value of a vehicle. Interest rates can be high, often exceeding typical personal loans.
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Credit Card: The interest rates on credit cards can vary widely but are generally considered high, especially if carrying a balance.
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Payday Lender: Known for extremely high interest rates and fees, payday loans can lead to a cycle of debt, making them one of the most expensive borrowing options.
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Bank or Credit Union: These institutions usually provide lower interest rates on personal loans compared to the other options. Credit unions, in particular, may offer even lower rates due to their non-profit nature.
Final Answer
The type of lender that offers the lowest interest rates is D. Bank or credit union.
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