Are you looking for a personal loan so you can pay the bills, get a repair sorted, or even make a major purchase?
The good news that there are many options available to you, with many different loan companies now offering their services both online and offline.
Two of the most popular types of lenders for personal loans are payday lenders and banks.
Payday loans have enjoyed an increase in popularity in the last few years, while bank loans have always been a popular option for people looking for a loan.
So which one is the best option for your unique situation? Let’s take a look…
Payday Loans v Bank Loans:
Your credit history
In recent years, banks have become very choosy about who they lend money to. This means that if you have a bad credit history, then your chances of being approved are slim.
This is not the case with quick payday lenders as they are well known for providing loans to many people, no matter what their credit history.
In fact, they don’t run any kind of credit check when you apply, which makes it much easier to get the cash you so desperately need.
The amount you want to borrow
If you only need a small amount of cash to tide yourself over for a couple of weeks, then a payday loan is your best choice.
However, in order to get your hands on a larger amount you will almost certainly need to apply for a loan with a bank.
When very large sums of money are involved, many banks usually want to see that you can secure something of value against the loan, although it is sometimes possible to get an unsecured loan.
In a rush for a personal loan? Payday loans are certainly the better option in this case, as you can literally get the money into your bank account within minutes.
Most payday applications can be completed within 10 minutes, and you will then get an instant decision, with the money being transferred to your bank account that very same day.
Bank loans are notoriously slow, and it can often take weeks to get a decision. Plus, the application process can be time consuming, especially when you are looking for a large sum of money.
The banks will want to know every detail of your financial history, and it’s not uncommon for the application forms to be multiple pages long.