Taking out a loan is a big decision. When choosing where to apply for a loan. it’s important to understand which lenders can best suit your needs. Here are some of the differences between online loans and bank loans.
The best way to get a personal loan depends on a few key factors.
Thinking of taking out a personal loan to consolidate high-interest debt, finance a big purchase, or cover a surprise expense?
If so, you’ve probably noticed there are two places to turn: online lenders and banks.
While both are popular options, there are a few key differences.
With traditional banks, familiarity is often the biggest selling point. If you have an established relationship with a bank, convenience may also be a key factor to consider.
The challenge? Some banks don’t offer personal loans, and those that do often have strict credit requirements, making them inaccessible to some with fair or poor credit. Also, banks often have a lengthier approval process, which may be a challenge if you need to cover an unplanned expense.
Fast turnaround times and accessibility are what attract many people to online lenders. Compared to traditional banks, they can be more willing to work with borrowers who have lower credit scores. Some online lenders — like LendingPoint — look at more than just your credit score when evaluating a borrower’s eligibility. This makes online lenders a good option for anyone looking to rebuild their credit.
Finally, many online lenders give prospective borrowers the ability to see if they’re pre-qualified, which can be helpful if you’re interested in checking your rate options before filling out an application.
When deciding whether an online loan or bank loan is right for you, do your research and compare your options. Checking your rate is a great place to start.
Visit LendingPoint.com to get started.
See what the possibilities are with no obligation or impact to your credit score. Check your loan options now.