One of the most common reasons why consumers choose a personal loan instead of a bank loan is that it is often much easier to get. Because: With a loan from the bank, there are certain requirements that the applicant must meet.
These include a positive credit rating and demonstrably no financial problems. In such cases, most banks immediately reject any loan application. Then there is often only a temporary solution for the consumer to take out a personal loan. But this has both advantages and disadvantages, which you should be clear about.
A personal loan offers these advantages
- Another big advantage of a personal loans no credit check is that the conditions are not set in stone and can be adapted to the individual life situation of the borrower or to the ideas of the lender.
- For example, it can be specified that the borrower can make special repayments at any time in order to reduce his future personal loan installments. Not every bank offers this option with a normal loan.
- Of course, every private lender is also very interested in ensuring that the borrower repays the borrowed money in the contractually agreed time. However, the criteria for a personal loan are usually not as strict as is the case with a bank.
- Rather, the personal relationship between the two parties plays a role here. If the trust is high, the agreement is certainly a little more relaxed. Nevertheless, every lender should secure themselves and write down the general conditions for the personal loan.
- It is different with a third-party private lender on the Internet – who can of course request the same security as a bank. Therefore, it is advisable to first look around in the circle of acquaintances when looking for a personal loan if you look at a loan with not too strict conditions.
- Overall, it can be seen that personal loans can be processed much more easily than regular loans from a bank. In the meantime, it is no longer even necessary to resort to a person in the acquaintance or family: there are numerous platforms on the Internet that broker loans between private individuals.
- However, the most important thing is to always pay attention to seriousness – because unfortunately there are still many black sheep.
Apply for a personal loan – how it works
Anyone who has decided to apply for a personal loan via a platform on the Internet must first enter their personal data in the corresponding web forms.
These include, among other things, the salary, the employment relationship, information on insurance, and often other questions. Based on the answers, the applicant’s creditworthiness can be determined and an offer for a personal loan can be made. The following applies the worse the financial situation, the higher the interest.
In principle, personal loans are suitable for people who do not receive a normal loan from a bank due to their creditworthiness or similar reasons. For anyone who is not one of them, you should first check what the conditions for ordinary bank loans look like – because this is often the cheaper solution.
A personal loan should, therefore, be seen as an emergency solution that can only be used when absolutely necessary.