A bank loan is a personal loan you get from a bank. It can start at rates as low as 6% and amounts can be as high as $100,000. Bank loans may offer advantages to their customers. But they still lose out compared to online lenders, as they have more stringent credit rating requirements, and indeed a number of significant cons.
Firstly, the procedure itself is a non-automated process. Many banks require you to fill out an application for a loan by coming to them personally. Not all banks will be able to satisfy their customers with the online prequalification process.
The bad news is that before you apply, you won’t even be able to see what rates and conditions you’re eligible for. In the future, this may be a really unpleasant surprise for you. And in general, many banks have already stopped offering consumer loans after the 2008 financial crisis. For example, Capital One or Chase have deprived their clients of such a service long ago.
It would be wise to consider other options for personal loans. It is worth remembering that for you, as for a client, the best loan is the one that is offered to you with the lowest rate and with payments you can afford. Based on this, online lenders are an excellent alternative option.
With their help, the process of obtaining a loan is greatly simplified, since you can complete it on a mobile device and already receive financing in just a day or two. You also know the amount of the estimated rate in advance, as you will be offered to pre-qualify. A huge plus is that you can evaluate your rate and conditions with several lenders at the same time, and this will not affect your credit score in any way.