5 Reasons the Bank is Not Your Friend

Tuesday, February 18th, 2014

Many people immediately turn to a bank when they need to get a loan. However, getting a traditional loan can be a downright frustrating process. When you need quick cash, the last thing you want to do is deal with a mountain of paperwork or a laundry list of requirements. Frankly, banks do not care about your timeline – they work at their own pace. If you are looking for a way to get fast cash, you are better off applying for an online loan. By doing so, you can get your money in a day’s time and will not need to disclose every detail of your financial history. Read below to discover more reasons why the bank is not your friend.

Banks can complicate the loan process in several ways, including:

  • Lack of flexibility – Financial institutions are not concerned whether you have an urgent medical bill or home repair to address. They have a predetermined set of terms and conditions, so they rarely customize your loan. In addition, many banks do not give you the ability to pay at your own pace or even design your own payment plan. They believe loans can be “one size fits all,” but that is simply unrealistic.
  • Credit checks – Many prospective borrowers are immediately turned away due to poor credit. Banks perform credit checks in order to assess the risk of lending you money. If the risk is too high, your request will be denied. When you apply for a traditional loan, bank personnel examine your financial history with a fine-toothed comb. In other words, if you have poor or nonexistent credit, the bank is not your friend.
  • Tedious paperwork – Applying online for a loan takes a matter of minutes. In contrast, applying for a loan at a bank requires you to fill out a stack of tedious paperwork. Before you are eligible to borrow money, the bank wants to know specific details regarding your financial history. When you are in a pinch, you simply do not have the time to complete such a complicated process.
  • Long lines – It always seems as if everyone shows up at the bank at the same time. If you are experiencing a monetary shortfall, the last thing you want to do is wait in a long line, because you clearly need to deal with more pressing matters! Avoiding the bank also means you can avoid other patrons. An online loan application allows you to submit your information from any computer, tablet, or smart phone. You can complete the process on your own time – whether you’re at home or on the go.
  • Unpredictable interest rates – Bank loans are often accompanied by unpredictable interest rates. You can travel from one bank to another and receive completely different rates. This type of inconsistency can lead to feelings of dread – how do you know you’re getting the best possible deal? In this day and age, fluctuating interest rates are simply unavoidable, but they represent yet another reason why getting a loan from a bank is an arduous process.