A lot of people having confused about the traditional bank loan with fast payday loans. So let us explain what the difference between both of them is. Basically, they are two different types of loan. quick payday loans or sometimes people call it payday advance is a short-term loan that is fast and easy to get with less complicated and fewer documents required from the loan provider.
Traditional bank loan, on the other hand, it is a more complicated loan and takes a longer time to get you the money. So why people want to get a bank loan instead of instant payday loans. There are some more reasons.
Pros and Cons of Fast Payday Loans
There are many advantages of quick payday loans, first of all, it is very easy to apply, all you have to do is to fill out an online application and submit it, once your application got approved, and you can get the money within the next business day.
No more rush to visit the store, wait in line and talk to any customer representatives telling them the reasons you are getting the loan. All these are longer exist when you apply for your instant payday loans online.
There is no more waiting and save you many times to do something more valuable. It is definitely good for people who need money in a rush.
However, the downside of this type of loan is the high fee, usually, it cost from $15-$45 per every hundred dollar borrow and the repayment term is not as long as the other types of loan. So it depends on the consumer, if you are in need of money fast then this can be the best choice.
Pros and Cons of Bank Loan
The reason why so many people like to use traditional bank loan is that the reputation of the bank gives people confidence. However, this type of loan is not easy to get and it is a very time-consuming process. Usually, it takes about a couple weeks and up to a month or two to finish all the verification and processing steps. So if you are not in a rush of accessing the money, then a bank loan can be your choice.
There is no right or wrong or standard way to get the money that someone needs. It all depends on your situation. If you don’t have a good credit and you choose to get a bank loan then end up you may waste all your time and you can’t get the money that you need.
Whether you are getting a bank loan or a quick payday loan, remember that you need to make sure that you have enough money to cover the payments when the scheduled payment day arrived. There is nothing wrong to get a loan, as long as you can repay.
No matter what types of loan you are getting, this is just for the short term and you can’t use it forever, so the best way is to make a good habit of saving. This is the only solution that you should look into.