Fast personal loans: Instant loan companies vs traditional financial institution

A major beauty of life is the fact that there are always different ways to achieve the same thing. The different ways could have different level of efficiency, assurance and results, but they remain an option that one could consider to achieve that thing. This applies to when you are considering taking a loan. You might want to choose between taking a loan from an instant loan company or from a traditional financial institution. Instant loan companies are majorly online companies that allow you to get money online within minutes of applying and without any stress or paper work. Traditional financial institutions on the other hand are your bank and microfinance banks that also provide money lending services.

Speed

A major advantage of instant loan companies over traditional financial institutions is speed. With instant loan companies, you could get your loan in less than 5 minutes after the need arises. For your traditional financial institution, you would still be dressing up and looking for the key to drive to the bank. You could get to the bank and then you would be sent home because you have not brought a utility bill, a valid means of identification or your collateral was not approved. It could take days for you to finally get the loan. Thus, if you need the money instantly, instant loan company is the way to go.

Bad credit

If you have bad credit, you can still get fast personal loans from instant loan companies. They do not check your credit status but will only get enough information to find you, be able to automatically debit the money from your account and give you the money. Traditional financial institutions would turn you down if you have bad credit. Thus, if you have been turned down by a traditional financial institutions when you needed a loan, then you can turn to an instant loan company as taking loans from them and paying back on time is an effective strategy towards rebuilding your credit status to a point where you can once again get loans from traditional financial institutions.

Amount

Instant loan companies mostly grant loans that are of a small amount, mostly less than 2,000 dollars at the most. There are few companies that could go a bit beyond that. The average, however is from 100 dollars to 1,500 dollars. Traditional financial institutions, on the other hand, can provide large loans once you have the right collateral that would cover for the loan.

Interest rate

The interest rate of instant loan companies are often high considering the loans they give are mostly short term loans. Traditional institutions give more of long term loans with lower interest rate.

When you have a bad credit score or you want fast personal loans without paper work or collateral, then you should visit swiftloans.com.au. Within a few minutes, you would be through with applying for the loan and your loan will be disbursed as soon as your application is approved, within the same day.