If you need cash, you are certainly interested in all products that allow you to make money. Not all of them are worth your attention. What to look for and how to make debt decisions? Comparison of loans in non-bank companies and banks will help you choose the service that will be better for you. Many people think that these offers practically do not differ. However, these are products that are addressed to various consumer groups, which is always worth remembering.
Loans – cost comparison
A bank cash loan is a safe way to get extra cash. However, it is a service addressed only to people who have creditworthiness and a good history of their financial obligations. In the case of cash loans, the bank also checks potential debtors and will not grant loans in the event of excessive risk. As a result, as a borrower, you can count on a lower total cost of credit. In addition to the nominal interest rate, the loan value will also be affected by a commission for granting the debt. Other fees will be definitely less important.
The opposite is parabank services, which guarantee the payment of money in a short time without checking the borrower. This means that even people who have negative BIK entries and have problems in receiving a positive credit decision in banks can count on financial help. However, this is associated with a large amount of additional fees on which loan companies earn. We can add to the costs, among others payment for a message on a mobile phone reminding of the upcoming repayment date, customer service at home, and many others.
It should also be noted that when paying back the loan, you will pay the installments once a month. When deciding on a loan in a parabank, it is possible that fees will be required from you even every week. Many people do not know this, which leads to problems with repayment and excessive expenses in a given month.
The repayment period and the maximum amount you can apply
The comparison of loans in terms of repayment period and amount of liability is favorable for cash loans. Banks allow the distribution of installments even over several years, which allows you to reduce costs and gain higher creditworthiness.
“Payday loans” limit the repayment term to a few weeks or months. A longer loan term is possible when a loan is applied for by a person who has previously used the services of a loan company.
Similarly, in the case of the maximum amount that a person may apply for. Banks allow flexible adaptation of the offer to customer needs. The borrower has a chance to apply for a loan in the amount from several hundred dollars to several dozen thousand dollars. This amount will be individually analyzed in relation to your financial possibilities.
Loan companies grant small debts that do not exceed a maximum value of several thousand dollars. In addition, similarly to the situation of the extended repayment period, regular customers of parabanks can apply for more money.