Over half of Canadians believe debt doesn’t have to be a bad thing. However, for that to be true, Canadians believe you need to manage your debt wisely.
If you’re looking at taking out a loan, consider traditional and online loans. That way, you can decide which option is best for you and your financial future.
Here are some differences between online and in-person bank loans.
Convenience for Applicants
When comparing in-person and online loans, consider how convenient getting those loans will be. If you choose an online loan provider, you can apply whenever and wherever works for you.
This is a good option if you work long hours and can’t make it to a bank when they’re open. Banks tend to operate during business hours, so you might need to take off work to apply for a loan at your local bank.
However, the internet is accessible all day and night. As long as you have an internet connection, you should be able to apply for a loan. Now, the approval may take until the next day if you apply in the evening.
Still, it’s a good option if you need something more convenient and flexible.
Information Security
Another thing to think about before you get a loan is the security of a certain application. When you apply for an online loan, look for a padlock next to the URL in the search bar.
If a site has that padlock, it means it has an SSL certificate to help encrypt your data. Without that protection, hackers could get ahold of your personal information and use it to steal your identity.
Applying for a loan in person usually means you fill out a paper application. A good bank will also keep the application safe after you submit it, so the risk of something awful happening is less.
Someone could still steal your data, but it’s not as easy if your bank takes care of your application.
Amount of Help
Another thing to think about is how much help you may need when applying for a loan. When you get a loan online, it’s up to you to read through the application and fill out the fields correctly.
Sure, you may have a friend or relative who can help you go through everything. However, if you live alone or don’t know anyone who can help, you’ll need to take the process slowly.
On the other hand, applying for a loan at a bank usually means someone can help you. A bank employee may be able to answer questions you have about the loan or about a question on the application.
Application Timeline
When deciding on the best loan for you, consider how long it can take to get the money. In general, online loans offer a faster turnaround, and you may even get your money the day you apply.
Traditional lenders may take days or weeks to process your application. If you need a loan to cover an emergency, an online loan may be the better choice.
Even if it’s not an emergency, it can be nice to get the cash a bit sooner. That way, you can cover your bills or pay back a friend who lent you money.
A fast application process can save you a lot of time and stress when taking out a loan.
Preexisting Relationship
Consider if you’ve had to get loans before and where you got the money. Maybe you’ve gone to a bank for a while, and you have a good relationship with that institution.
They might offer you a better interest rate or a longer loan term than a new customer. However, if you’ve never gotten a traditional loan or if you don’t have a good relationship with a bank, consider online loans.
Your relationship with the lender doesn’t matter as much when it comes to applying and getting the money you need. As long as you fill out an application and qualify, you can get the cash you need.
Impact on Your Credit
If you have to apply for loans often, an online loan is a good option to consider. Online lenders don’t always do a hard credit check, so your credit may not drop from the application.
In Canada, the same can be true of bank loans, but doing a lot of hard checks might affect your credit. If you apply for a lot of loans in a short period, you may notice your credit score takes a hit.
Doing that often can slowly decrease your credit score by a significant amount. Of course, borrowing loan after loan isn’t ideal, but it’s not always possible to avoid that.
Amount of Money
Another thing to think about when getting a loan is how much money you need. Many online loans are fantastic if you need a few hundred dollars, but they aren’t ideal for larger purchases.
You might need to go through a bank if you want to get a mortgage or buy a new car. However, if you need money to cover groceries or your rent, an online loan may be perfect.
Ways to Pay
After you get a loan, you’ll need to determine how you’ll pay it back. Online loans usually offer some sort of virtual payment portal that you can access at any time.
Depending on the bank loan, you may need to pay in person or using cheques or a debit or credit card. Think about the most convenient repayment option for you.
Then, you can determine if you can repay a specific loan or if you’ll need to set up a new account to make payments. If you want to be sure, ask the lender what repayment options they accept before you apply.
Online Loans Made Easy
No matter why you need some extra cash, borrowing may be a suitable choice. However, you have to decide between in-person and online loans.
That way, you can get the money you need in a way that works for you. Be sure to think about the ways those lenders differ to choose how you’ll borrow the funds.
Are you ready to get an online loan safely and easily? Claim your cash today.
