Times are hard, products are more expensive, and bills are a lot higher – living life now costs more than it used to. Because of today’s higher cost of living, some people unknowingly go over budget and get into unwanted financial trouble. During dire times, they often run to banks to apply for a loan.
While bank loans are a viable option for a person in need, what people don’t really know about is that it is not all good and easy being in-debt to a bank. If there are other loaning options to try out, then bank loans should be at the bottom of the list.
Cons of Bank Loans
Bank loans have good and fair interest rates. They have fair monthly payments. Banks also offer a lot of loan options. Other than these, the pros of bank loans overshadow its cons by a great deal, especially if the person is urgently in need.
- Lengthy paperwork
- Long application and approval times
- Requires strong credit
- Requires collateral
The main problem with bank loans is that it barely considers the applicant. If a person is in dire need of a loan, there will a lot of problems barring him from getting one from a bank. The lengthy paperwork and long approval could prove disadvantageous for those hoping for immediate financial aid. Banks take weeks and even months before approving a loan.
Other than that, some banks require the applicant to have a good credit history. This con prohibits those who have had a bad start from getting a little loan boost.
All-in-all, bank loans feel unfair. While it does present a few advantages, the lengthy and tedious requirements they are asking for would be unfair. Luckily, there are other options; no, we aren’t talking about loan sharks.
Loaner’s Safe Haven
Other than banks, lending institutions are the best way to get alone. Aside from having faster application and approval times, lending institutions also give applicants the chance to make their payment schedule more flexible. Plus, they don’t require too much paperwork when filing the application.
As compared to banks, loaning institutions like Diamond Lending in San Diego, California, are the ones who truly give applicants a fair shot at getting a loan. They offer convenience, ease, and immediate help. Not only that, their flexible payment scheme guarantees an applicant that he should not have to worry too much about how they would pay for the loan without having to sacrifice too much.