Are you in the market for a loan? If so, you may have several options, but two of the most common options are a bank and quick personal loans. Each one has its advantages and disadvantages. Here are some pros and cons about them, to aid you in your decision.
What Are Quick Personal Loans?
These lenders don’t ask you for collateral. You only need to sign your name and provide contact and employment information. They offer fast, unsecured financing.
What is a Bank Loan?
When you need money, and you apply at your local bank, they may give you a loan. Most bank loans require collateral but not always. Some banks offer unsecured loans, but they usually have a cap of a few thousand dollars.
Benefits of Bank Loans
Some banks may give you several types of loans. If you already have a loan with them, it may be easier to qualify for conventional lending with the bank than other lending sources. They sometimes offer attractive interest rates and terms.
Bank Downsides
It can be hard to qualify for a bank loan, as you’ll need to have good credit and probably loan collateral. Also, you may have to see a loan officer and fill out a lot of paperwork. This can take several days or longer if the bank has to check with out-of-town sources on your application.
Benefits of Quick Personal Loans
With a fast unsecured loan, your credit rating may not matter, because some lenders don’t check credit histories. You won’t need loan collateral either. This cuts down on the paperwork and speeds up the approval process. In fact, some companies offer instant approval, and you may get your money the next day.
On the downside, interest rates may be higher, but this depends on the lender. Some unsecured lenders offer attractive financing packages.