Banks are known to render traditional loans, but when you take time to go out and ask people where they can get immediate funds when they need money, the usual answer you get from them is from quick-cash loans. Hardly few will answer they get it from the loan in the bank. Realizing many will go for the quick-cash loans that are usually short-term loans too, let us take a look their reasons behind such financial move.
Despite the visible higher rate that the short-term loans have, still many will apply for it rather than in bank loan that can pool fund for them with lesser interest rate and longer terms. You can’t say they don’t have a valid reason because they have, in fact. The following are one of them.
Long List Of Requirements
Banking transaction and banking process usually have a long list from the moment you will apply for a savings deposit to applying for loans. This is not convenient for some people especially those low-income individuals who may not have all the required documents to present.
If you need immediate money desperately, you do mind the time you need to wait before the money is released to you. This needs a lot of patience but what if it is a matter of life and death?
Many may not be aware of it, but banks do have a long list of hidden fees such as monthly services or annual fees, below minimum balance fees, fees when you use online tools, fees when you get money from different bank outlets, etc.
Credit Score Matters
Worse, if you have bad credit line you cannot secure loans from banks or the bank will release less fund than the amount you applied for your loan. Don’t feel bad about the approving loan officer; it is just a protocol to check and evaluate your paying capacity to assure that you can pay back the loan you applied. This will also prevent you from too much burden on paying your loan so the approving officer will assess your financial statement too.
The maintenance of bank accounts sometimes is too much for few individuals that are why they prefer payday loans or other short-term loans when they need cash rather than apply loan from the bank. The high maintenance cost on the bank is also the reason why some people are discouraged to use bank transaction since there are other options available in our digital age.
Either by choice or not, some people would prefer applying for the short-term loan from non-bank institutions like lending firms because of the numbers of conveniences and ease in the transaction. This is not a problem too if you know how to manage well your expenses and income. While weighing where should you apply for the loan, you take a look at the requirements of the institution s if you can qualify for it.