11/15/2022
The new way of banking is boosting the different figures related to personal loans. Thanks to the rise of the smartphone, recent economic crises and the need for urgent money, fast online loans have emerged as a solution.
If you are still not completely clear about their differences, we will try to shed some light on them.
Definition of personal loans and fast online loans
Regarding unsecured financing, traditional and online personal loans work in the same way. That is, you have banks or lenders that offer you different amounts of money so that you can pay them back in a given time and adjusted to an interest rate.
- Loan amount: between $ 100 and $ 35,000
- Term: entre 7 days y 12 months
- Extra:Interest rate between 6.63% and 485% APRAddress: 1125 E. Broadway #545, Glendale, CA 9120
- Loan amount: between $ 200 and $ 50,000
- Term: entre 15 days y 120 months
- Extra:Quick online loans up to $50,000
- Loan amount: between $ 500 and $ 50,000
- Term: entre 15 days y 120 months
- Extra:Fast loans up to $50,000 for whatever you want.
Interest rates from 6% to 439% APR
Finansi Group SL - Calle de las Barcas 2 Piso 2, 46002, Valencia
- Loan amount: between $ 500 and $ 10,000
- Term: entre 3 y 1728 months
- Extra:Fast online loans even with bad credit.Interest rates between 5.99% and 35.99% APR
3315 E Russel Rd Ste A-4 Box #105, Las Vegas, NV 89120
- Loan amount: between $ 500 and $ 10,000
- Term: entre 3 y 36 months
- Extra:Interest rates between 5.99% and 35.99% APRAddress: Chief LLC, 2661 N Pearl St #431 - Tacoma, WA 98407
Although the conditions vary, the figure of installments or monthly payments remains. Basically, both types of financing serve the same purpose: to give you extra money to spend as you see fit in exchange for a fee in the form of interest or fees.
The differences, which we will delve into below, have to do with the speed of document processing, requirements, amounts, terms and other financial aspects.
What are the differences between quick and personal loans?
If you decide to follow our suggestion when comparing products to look for the best offer available, you have to evaluate the pros and cons of each option. When it comes to personal loans and fast loans online, you have to take into account the following:
What requirements do they ask for?
When applying for a personal loan at a traditional bank, requirements are higher. This means that you will have to meet more conditions to qualify for the amount you are requesting.
The most frequent limitations with this modality have to do with credit score, history, source of income and hard or soft inquiries.
On the other hand, fast online loans are much more lenient in terms of requirements. Often, it is enough to be of legal age, have the means to pay and a valid ID.
This convenience has made them gain ground and favors those who have low credit, no credit file, are self-employed or have irregular income.
What are the interest rates on quick, personal loans?
Whether it is the APR or the APY, this category is shared by both traditional and online alternatives. If you do a "shop around" in Busconómico or another comparator, you will find very similar rates for medium and long term financing.
The big difference in this aspect is related to the terms. While banks prefer long terms so that you pay more interest, online options can be reduced to weeks.
However, this implies that the rates will be much higher. Among mini-credits, quick loans or urgent loans, it is not uncommon to find APRs of 400% or more.
What procedures are necessary to contract them?
Undoubtedly this is the point on which online quick loans shine more than traditional offers. These lenders use online platforms to verify your identity, credit history and receive the respective documents.
May interest you: What happens if you don't pay back a personal loan?
There is no need to visit a branch, you receive the approval in minutes and the money is deposited the same day or in 48 hours maximum. This speed is what has driven traditional banking institutions to improve their processing services.
Since they have the same diligence to do the paperwork, urgent online loans are more convenient. In fact, you can apply for one from your tablet or smartphone wherever you are.
What are the strings attached?
Banks use many forms of advertising to try to get you to do business with them in one way or another. But unlike online platforms, they apply the concept of linkage.
This is nothing more than giving you better terms in exchange for you taking out one or more products with them. While this may mean a reduction of the interest rate by 0.25% or 0.50%, this tactic is unusual for online options.
What we can say about this is that if the deal you are offered is right for you, check the fine print, compare the best personal loans on the market and then decide.
How much money do quick and personal loans grant?
This is perhaps the most positive aspect that banks have regarding online loans. Depending on your income, payment history and score, the amounts granted by traditional institutions are more considerable.
Although with online lenders you can get up to $100,000 USD, there are very few companies that can give you this amount without excellent credit.
If you need money fast and without many demands, online personal loans are a good medium-term option. Before resorting to a payday loan and if you can wait a bit, go to a traditional bank. To find the best options, you can count on Busconómico.
Español: Préstamos rápidos online vs préstamos personales tradicionales