Banks are not the only ones providing loan services, there are thousands of third party lenders out there too. Before, nontraditional lenders are usually referred to as “loan sharks” because they charged absurdly high interest rates and only made poor people poorer. However, the modern-day nontraditional lenders are better than both the banks and the loans sharks. This is because they have identified the strengths and weaknesses of both kinds of lenders only to come up with the best funding alternatives today. A perfect example would be the personal loans with bad credit.
Personal loans with bad credit require no credit check. You just need to be actively employed in order to qualify for this lending option. There are two kinds of lenders that offer personal loans with bad credit: the traditional and the online.
Pros and Cons of Traditional Personal Loans
The number one advantage to a traditional lender is that there is a physical location that you can visit. This somehow assures legitimacy since it will be very difficult to keep a physical office if it is a fly-by-night lending firm. You can also talk to a person vis-à-vis and even examine some papers if you want to.
However, if the lender’s physical store is far from where you live or work then you would need to spend on gas or bus ticket just to get there. Also, it might take you two or more trips before you can finalize your transaction – the first will be to seek guidance if you qualify or not and the second would be to file all the necessary paperwork.
Pros and Cons of Online Personal Loans with Bad Credit
Online personal loans with bad credit are anchored on the promise of convenience. There will be no trips to physical stores and you can send in your application anytime and any day of the year. Holidays won’t even matter because the best online lenders will still process your application on holidays. However, the money will only be reflected during regular banking days because that will be based on the bank’s discretion.
But you have to be very careful when approaching the issue of personal loans with bad credit. Since you cannot physically see the documents proving their legitimacy, what you can do is to learn as much as you can about them. You can read reviews, visit websites and talk to the lender yourself. Better yet, look for a notable borrower-lender matching company to be doubly sure that you are only going with the best deals when it comes to personal loans with bad credit.