When you’re faced with a financial emergency, there is always the option of getting a bank loan. However, if you value your time and money, you may want to take a look at private loans instead. Private loans are a much faster and cheaper way to get money for an emergency. Here are some reasons why you should avoid bank loans and opt for private loans instead:
1. Faster Approvals
The application process for bank loans can be tedious and long-winded. You’ll have to fill out a lot of paperwork, submit documents, and wait for a credit check before your application is approved or rejected. Private lenders don’t require any paperwork or credit checks and they approve applications instantly. You can get the money you need in under 24 hours!
2. No Hidden Fees
Most banks have hidden fees that they charge on top of the interest rate which makes the bank loan more expensive than it looks initially. On the other hand, there are no hidden fees with private lenders. They will tell you upfront about all their fees so that you know exactly how much you will be charged every month. There won’t be any surprises waiting for you when it comes time to pay off your loan!
3. Better Rates
If you don’t feel comfortable giving out your credit details to a bank, they will most likely turn you down. However, private lenders don’t ask for your credit record and they don’t turn anyone away. You can get a loan even if you have been rejected by banks in the past. Getting a private loan can be cheaper than getting a bank loan because they charge the borrower lower interest rates!
4. Faster Payoffs
If you have a bank loan, it will take several years to pay it off since you will have to start with small monthly payments. However, with private loans, you can pay off the loan as soon as you want to since they charge only interest. You don’t have to pay any fees or other penalties, either!
5. Longer Repayment Periods
With a bank loan, your loan repayment period will be shorter than with private loans. Your monthly repayments will depend on what type of personal loan you have been approved for and how much you borrowed. If you get a personal unsecured loan from the bank, it will take less than 10 years to pay them off. While private loans don’t have any penalty for early repayment, they do take longer to pay off than bank loans.
6. Safer Loans
Many people have experienced financial difficulties because they took out bank loans instead of private loans. They found that the bank loans were much more expensive than they expected, and this caught them by surprise because they had not been warned about the high-interest rates beforehand.
If you have been turned down by banks in the past or if you are scared of getting into a contract with them, it’s better to take a look at private lenders before getting a bank loan. They can be trusted since they don’t share any banking information with third parties like banks and credit card companies do.
7. Faster Funding
Since you don’t have to submit any paperwork or credit checks, private lenders can approve a loan application instantly. You can get your money within 24 hours! Private loans are a much faster option than bank loans since your application gets approved and you get the money right away.
8. No Collateral
Banks usually ask for some collateral or a guarantee to ensure that they will get their money back. If you want to avoid giving away your property, you need to look at private loans instead of bank loans. You don’t have to provide any collateral with a private loan, so it’s one less thing to think about.
9. You can qualify with bad credit
Many people with bad credit have been turned down by banks in the past. If you are living paycheck to paycheck and have been rejected in the past by banks, it will be hard to qualify for bank loans. However, if you get a private loan, the lender can be sure that they won’t lose their money because of your bad credit score.
10. No loan amortization
When you apply for a bank loan, they ask you to list down all your expenses to calculate how much money they will lend you as well as when they will repay the loan back. However, private lenders don’t care about that at all. They will approve the loan amount you request and they will let you repay the loan whenever you want to.