Personal loans are the way in which many people account for emergency bills or unexpected expenses come up. However, the rates on these loans are much higher than other types of loans. The reason is that these personal loans are unsecured loans, which means that by giving the person the money, the lender is taking a high risk. In order to account for that risk, the lenders charge a high rate. Usually the rate is a few points higher than a secured loan. However, even with that being said, the rates of personal loans are usually still lower than using a credit card to cover the expense. In addition, since the rate is charged on the amount and there is a set payment each month, people find that they pay these off faster than the credit card. Overall, when the person needs the money now, these personal loan rates are going to be the best that they can find.