Is it Best to get a Personal Loan from my Bank?

If you are looking for a personal loan, then the first place you might turn to is your bank. There are advantages in doing this, but you may also find advantages in looking elsewhere.

Advantages in using own bank

If you are well-known in your bank, perhaps on good terms with staff members or even the manager, then you might feel very relaxed going in to ask them for a loan. You might feel that they will be more likely to give you a good deal because they know you. This could be true, particularly if you have a good credit report, they may have a lot of respect for you and be likely to lend to you. They will also have your ID so will not need to do an ID check to lend you money. This will possibly speed up the application process. You may also feel that you trust your bank to give you a good service and feel comfortable with them. You may be happy with them because of their customer service, ethical stance, community role or other things and feel like it is the perfect thing to do, to go to them. Of course, not everyone has this good a relationship with their bank, but anyone applying to their own bank for a loan will have the advantage of not having to have an ID check.

Advantages in looking elsewhere

The personal loan market is very competitive and there are lots of lenders. This means that you will be likely to find a better deal if you look for another lender. You will be wise to therefore see what is available. You may find that there are lower interest rates, but this is not the only factor you should be looking for. It is wise to calculate the total cost of the loan and compare that cost. You should also consider other factors as well though. For example, you should be thinking about the loan repayments and whether you will be able to afford them. These will differ depending on the lender. You might find that it is better to have a loan with smaller repayments that will be a bit more costly, compared to a loan with less repayments that are larger, because it will be easier for you to manage those repayments. You also need to think about whether there are other things that might be important to you in a lender. You might want one that is friendly, has good customer service, is well-known or something else. You might also have specific features you want from the loan such as being quick to arrange, being flexible with repayments, having the ability to overpay or things like this. It is worth thinking about these as you will have a lot of quick payday loans to choose from and this will mean that you should be able to find a loan that fits with your criteria.

What to do

It is wise to compare the different loans that you have available to you. Think about what factors are important to you with regards to the different loans and that should help you to pick which is the best. We will all have different ideas about what is most important. Some people might want the cheapest loan, for example and others might be worried about having small repayments. Some might want a lender with good customer service or a nearby branch and others might want to be able to do business online. Once you have an idea of what is important to you then you will be able to compare the different lenders.

It may seem like a lot to do especially when it is so easy just to get the loan from your current bank. However, it could have a really big impact on you. If you can pay significantly less, for example this would make a big financial difference. If you can repay more easily this can make a difference to your stress levels as could going with a lender that you trust or one that has good customer service. It will not really take that long either. You should be able to get the information you need pretty easily from looking online or using comparison sites. If you are struggling then you might feel it is worth speaking to a financial advisor. Make sure that they are independent and they will be able to look at all of your options. You will have to pay them but they may be able to save your more money than you are paying them and hopefully match you to the perfect personal loan that will fulfil all of your criteria. This could be well worth their fee and it will save you a considerable amount of time which you could use working to raise the money to pay them.

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