Raising a child has never been more expensive and challenging. A newborn will require things that will equate the cost of maintenance of an 8 or 10-year-old kid. No matter what your child’s age is, it will always end up making a big hole in your pocket. If you already have a child then you would know exactly what I’m talking about. The responsibility of paying bills, catering to personal desires, and raising a child together can really put you through a hard time. There are times when these expenses get out of control and you end up with empty bank accounts. You can not always depend on your friends and family. Sometimes you have to take the responsibility head-on and do something about it by yourself. In such a case the only way ahead is to take a loan. Now why we ask you to avoid banks for loans is because of some clear advantages offered by companies providing online emergency loans. Let’s have a look at some of these advantages.
Hard credit checks
If you’ve ever applied for a loan from a bank then you will be well aware of the system of ‘hard credit checks’ that they follow. If not then you should know that the first thing they check is your credit score and if the credit score is low then you will be straight away refused for the loan. This system is so uncompromising that it got the name ‘hard credit check’.
On the other hand, the online companies do not follow such a strict pattern. The company ties you up with private lenders who can look at things like your salary and electricity bill payment record to form a trustworthy opinion about you. There are many other ways an online lending company can help you out and you can learn more at https://personalmoneynetwork.com/need-money-now/ to make yourself aware of these helpful tactics. As this system is much more relaxed and customer friendly, it is known as ‘soft credit check’ system.
Mortgage
Most banks require you to put your car or house as a mortgage in order to be able to get a loan approved. This is a traditional practice that is slowly dying away and most places have already eliminated and cast away such an uncivilized practice. Sadly banks have not been able to catch up to this modern trend. This is another huge reason that banks are no longer people’s favorite choice for loans as online companies never ask for any sort of mortgage.
Efficiency
No one likes waiting for too long these days. Advancements in technology have sped up almost every process we know of. Sadly banks have again failed to recognize a trend that they should have adopted way back. They have a very slow system in place. It takes almost a week for a bank to process your loan and another week to be able to actually transfer the money to your bank account.
Compared to the 2 week waiting period of banks, online payday loans and other emergency loan applications work at lightning speed. You take 3-4 minutes to fill out a brief application form online which is processed in the next couple of minutes. After that, you mostly have to wait for only 24 hours to receive the money in your account. Having impatient kids to care for means that you can not afford to wait for so long for the bank and you would rather simply apply online.
Rigidity
It can be frustrating when you know you have loaned money to get you out of a tight spot but can not use that money someplace else, which may be equally important. Banks do not let you use the money for anything except the listed reason in your application form. Once again an online company can come to the rescue. These companies simply send you the required amount and don’t bother tracking the money. You can use it anywhere you wish to. Children and their wishes can be quite unpredictable so applying for a loan to banks having such a rigid layout can be problematic for you.
Rate of Interest
There is a rate of interest that you are charged whenever you borrow money from somewhere. You would always want this rate of interest to be fair when you take a loan to help you out with raising your children. Unfortunately, banks are not exactly fair in this aspect. They increase the rate of interest if the borrower’s credit score is unsatisfactory. Thankfully online companies do not do the same. They keep the interest rate unchanged even if they take the credit scores of their borrowers into consideration.
Loan Amounts
Every child has different needs and every parent has a different capacity when tending to their needs. Hence every parent would have a different loan requirement. You might require $1000 to help you out with something while another parent would require only $250 to get by. In such a case a bank would gladly accept your loan request and might not entertain the other parent as banks usually don’t accept loan requests of small amounts.
This discriminatory practice is not followed by an online company. If you ever go to apply for an online payday loan then you will notice that most of the loans that they give out are under $500. While applying for a loan to a private company you can ask for a loan that is as low as $100 and you would not face any discrimination.
Banks used to be the only source of loans available to the public before private companies started giving them competition. The advent of the internet changed the whole game. Private companies started providing online payday loans, installment loans, and so on with schemes that were borrower friendly. Banks for some reason still stayed glued to the traditional system and did not get on the bus of technology. Thus it is always best to apply for loans from private companies that are operating online, rather than banks, especially when you are raising children.
Thank you,
Glenda, Charlie and David Cates
