When it comes to taking out a loan the option to go through a licensed money lender or a bank is one of the many options you are going to have to choose from as a borrower. So, in addition to comparing the types of loan options you have as a borrower, you are also going to want to differentiate the differences with banks, licensed money lenders, and the term options they offer to you. In some cases, you may not have much of a choice as to who you can borrow with, but when you do, these are some things to keep in mind as you are trying to decide if it is best to go through the bank, or if it is a better option to go through the money lender for a loan.
There is of course the security factor that you are backed when you choose a bank lender. So you know you are safe as a borrower, the funds you borrow are secure, and you know that the loan is a legitimate one when you choose this route as a borrower. In this case, you can also be approved for a higher lending limit. Banks are generally going to offer you the highest loan amount, in comparison to money lenders, as well as other lenders you can borrow through. If you require a larger amount when the time comes to borrow, then the bank is the best way for you to know you are going to receive larger sums of cash when you borrow. With banks, you also have more time to repay and the interest is usually the lowest. So, you will pay for a longer amount of time, but you can also minimize the monthly payments to the lender you are going to go through there.
The biggest hurdle with a bank lender is the approval. You need to have stellar history in terms of borrowing, repayment, and your credit history if you hope to get an approval from the bank. SO, if these are elements you can meet when the time comes for you to apply for the loan, it is a route you may want to consider going to take out a loan.
Licensed Money Lender
You need to make sure they are licensed; this is the first step in the process, and if you can’t verify this, you do not want to borrow from a particular lender. Not only is it safer for you when a lender is licensed, you also know there is government regulation in place, so you know the funds you are going to borrow, are secure and are safe as well. In terms of loan amounts, it is usually a lesser amount than banks, but more than payday loans. So, you can usually get $1.5-$2K approval with most lenders. And, the interest rates are variable, but are higher than bank loans are going to be. A major benefit here is the fact that you can get instant approval, even if you do not have the best credit score. So, if you need cash now, and you don’t have a great credit rating, this might be the option you are going to go through when you are ready to apply for a cash loan with a lender.
You do have to compare both bank and money lenders prior to taking out a loan. In addition to finding the best terms you can, it is also going to allow you to find the highest lending limits you can take out with the lender, if you do require a higher cash loan. And, when you compare, you also know that the terms are going to be personalized to you, and provide you with the best you can get when taking out a loan with the money lender or with a bank.
You know there is more than one place you can go when you wish to take out a cash loan; it is up to you to compare as many as possible before you borrow. Doing this results in the best terms you can possibly find as a borrower, and also ensures you will not over pay in terms of the interest rates you will be approved for.