After looking at credit cards vs. debit card, continues Lite lending company now in our series of mergers. This time focusing on internet loans vs. Bank loans.
When you have to borrow money as a consumer you have definitely considered whether it should be done in the bank or online. Or it may be you have been rejected in the bank and are therefore considering the possibilities on the net.
The reasons may be many, but in all cases there is reason to know the key differences between Internet loans and bank loans. You can see more about this here.
The key differences
When assessing the key differences, it is important to know that there are strengths and weaknesses in both solutions. It is your personal consideration that determines what you prefer.
We have mentioned five of the most significant differences and confronted them at 5 points. It makes it easy to see where they differ from one another.
- Do not give security.
- You can borrow up to USD 350,000.
- You can sign with ID.
- Internet loans are easier and faster.
- Purpose has no influence.
- You need to provide security.
- Your finances define your loan amount.
- You have to sign physically by hand.
- Bank loans are cheaper but more cumbersome.
- The purpose can be crucial.
Especially the advantage of the fact that online companies do not go up in purpose is something that appeals to many people. You should no longer be able to “defend” your money needs. So it really matters whether you are looking for a loan for new winter tires or money for doors and windows. On the net, it is only your private economy that defines the possibilities.
Easy, fast and cheap
If you have a healthy personal finances, you should have the opportunity to borrow money in both the bank and online. It gives you all the cards at hand when choosing the optimal solution. The very general trend in the market is that with smaller amounts up to USD 100,000, more online applications will be applied in relative terms.
As soon as the amounts exceed this amount, it will be done via the bank to a greater extent. Mainly because it is cheaper to raise money in your own bank and at larger amounts, many feel it is worth the trouble. In addition, they know your personal finances thoroughly and can advise you accordingly.
Conversely, making bank loans can be extremely complicated and cumbersome, even at smaller amounts of USD 20-30,000. This has led to more and more people considering the Internet. Here you can apply to 2-3 providers in 15 min and after a few hours you can have 3 loan offers in front of you. You can even sign them with ID.
A protracted banking process of several days, perhaps weeks, has now been transformed into a matter of hours. When online providers have even lowered their interest rates to 5-10% at the cheapest, they have certainly become a strong alternative.
The choice is yours and only you know your own needs. Lite lending company hopes you have learned the key differences.