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So, you need quick financial assistance and you have 2 options in front of you – a bank loan or a quick cash loan from a private lender. You need to analyze which is better and more suitable to your requirements. Also, you will have to explore well and get into the details about the eligibility criteria, required credentials, and other stuff which will help in deciding to a huge extent if you can qualify for a particular type of loan.
Typically, people prefer taking loans from banks as they are considered to be the most reliable financial source. However, the myth has been busted with the arrival of the private lenders, the credit unions, and the other financing companies who are now considered to be the more preferable providers of financial assistance. These private lenders offer more favorable conditions than the conventional banks.
Here are a few differences in the procedures followed by the banks and the private lenders while providing a loan. Keep reading to know more and decide on which is a more suitable choice for you.
• Credit Checks – Credit scores are the scary numbers that supposedly indicate the financial management capacity of the individual. The first and foremost reason why people flock towards availing a quick cash loan from a private lender is that they do not consider credit scores as an important criterion for getting a loan. On the other hand, banks consider credit scores as a very important factor while considering a loan application. Any application with a low credit score will be rejected by the bank. But the lenders play the role of a Good Samaritan and give a second chance to avail loans for poor credit scores also.
• Guarantor Requirement – The banks will ask for a guarantor or for an asset as a guarantee for the purpose of security while availing most types of loans. This may be a hassle if you do not have any asset or if you cannot bring in a co-signer. Apart from providing loans for poor credit, the quick-cash financiers also offer no guarantor loans. The availability of these quick cash loans for bad credit no guarantor makes them one of the most preferred choices for getting a fast-cash loan. The non-availability of the unsecured bad credit loans from the banks makes them the less preferred choice while availing loans.
• Decision Making – The banks carry out a strict loan processing procedure and involve a lot of complicated paperwork with a time-consuming course. Since the whole process takes time, you will lose out on a lot of time before the banks make a final decision, which is still unsure of getting approved. Also, they have stringent rules and they follow them strictly which gives lesser possibilities for a borrower to avail any loans for bad credit no guarantor. On the other hand, the private lenders will carry out only a basic verification check without much paperwork and will only check for the authenticity of the borrower. They will carry out the loan processing quickly and will give quick decisions which have a relatively higher chance of approval. So, you will be saving a lot of time and if the loan is approved, the money will be in your account at the earliest and so, you can overcome your financial issues as soon as possible.
• Loan Options – The banks have a standard menu of loan types that they offer. You will have to choose from the few choices of loans that may suit your requirements better. However, the private lenders will provide a plethora of loan options from which you can choose a suitable loan type as per your requirements and preferences. At FleetQuid, we offer many types of loans for bad credit UK, including the payday loans, instalment loans, car loans, etc.
Although getting a quick cash loan from a private lender may seem easy and convenient, it is better to avail a loan only when you really need the financial aid. You should also make sure that you are borrowing from reputable lenders or financing companies like us so that you are not a victim of fraud. Also, you should decide on an amount which you are capable of repaying on-time without any disturbance to your basic expenses. Avail a suitable quick loan from us and solve your financial issues soon.