Sudden financial need. Many know it. First the car breaks down, then the washing machine and the money is simply missing at all corners and ends. A loan is needed and should lead out of the financial bottleneck. Especially many young families find themselves perplexed in front of thousands of offers, each of which claims to be the best one. We want to help you to decide for the right credit and present beside the classical bank credit also still the advantages and disadvantages of a private credit.
Bank loan vs. Personal loan – advantages and disadvantages of financing
Personal loans come in two different forms. For one, there is the credit you get from friends or family. Of course, the people in your life are always eager to help you out of your need, and one or two will surely offer to lend you the money you need. Loans in the family are practical and can quickly provide relief for smaller sums, but if it is larger sums, so can quickly develop a strange mood between the family members. So the borrower always has the feeling to be indebted to the lenders and it can always happen that the lender himself gets into money trouble.
On the other hand, the official personal loan provides a certain degree of security. Here the money comes from private investors, which you find on so-called credit marketplaces of various online portals. Completely anonymously you provide first a credit project, with which you indicate the necessary credit sum, the credit term, possibly a purpose and the interest rate. Now your project is put online and reviewed by many different private investors. One or more investors will decide for your project.
However, you must consider that the investors also want to earn money with the project. So the interest rate you choose must promise the lender the highest possible profit. After the money is transferred to your account, the agreed installments plus the interest will be repaid monthly. The advantage of such a personal loan is that it does not matter whether you have a bad credit rating, i.E. A poor credit score, because the investors themselves decide to whom they want to lend the money. Unlike bank loans, self-employed people and start-up entrepreneurs with fluctuating incomes also have the opportunity to receive an attractive loan offer.
The advantages of the bank loan are obvious. In contrast to the credit of private investors you have particularly good conditions. An online loan is usually cheaper than loans from private investors, so they have a lower monthly installment payment. In addition, you are much more flexible in the choice of term and loan amount. Why should young and credit-inexperienced families rather take out a bank loan?? With the banks you profit from experience of many years, have always a personal partner, with whom you can clarify questions and problems and have occasionally also the possibility of an installment break, should the money at the end of the month times become scarce.
The way out of financial bottlenecks is usually a loan. However, even in oppressive times and dire situations, one thing should not be disregarded: the interest on the loan! – source: kreditzinsen.Net
Another distinct advantage of a bank loan is that you are given a fixed period of time in which you can pay back your money. You know from the outset what you are getting into and you can adjust to the repayment exactly. This is basically of course also with the private loan the case, but if you borrow the money from friends or relatives and disputes or disagreements arise, the friendship is known to stop at money. Nothing is therefore worse than a family only because of money to divide.
Conclusion on bank loan vs. Personal loan
Especially for a young family that needs nothing more than absolute security and certainty, a bank loan is clearly of advantage. Term, interest and co. Are all exactly adapted to you and by your professional contact persons in the next bank branch to inquire again and again. Thus, you can do absolutely nothing wrong with a bank loan and nothing stands in the way of a house or family car.