Since times are difficult, the loan has become an important solution to those who are really in need of money.
Whether you need to pay your college tuition, settle the rent, or get a motorcycle or car for your work, loans really come in handy.
However, some individuals don't know if they should apply for a loan online or in person. If you are one of them, here's how you can choose the best one for you.
Loan Application Guide 2023: In-Person Vs. Online
Forbes provided the things you need to know about in-person and online loans, such as the reasons you should get one of the two, as well as their pros and cons.
In-Person Loan Application
From the name itself, the in-person loan is the process of applying for financing by visiting establishments of banks and other financial institutions.
You should get an in-person loan if you:
- Already have an existing relationship with banks.
- Want to have lower rates and other fees in loans.
- Are not in a hurry.
- Are not comfortable giving your sensitive details online and prefer to have a face-to-face interview with the financer.
Pros:
- You can get lower fees and more competitive rates if you have a pre-existing banking relationship.
- You will have the chance to make a good impression since the interview will be face-to-face.
- You can ask more questions and receive better answers.
Cons:
- You need to allot a time of your day to process an in-person loan application.
- You need to wait longer before your loan can be approved.
- You will not have prequalification.
Online Loan Application
This is the process of applying for a loan online. Lenders tend to simplify the loan application when it is done via official financing websites.
You should have an online loan application if you:
- Don't have any relationship with banks yet.
- Want to have a faster loan approval.
- Have no/low credit history.
- Want to prequalify for the loan.
Pros:
- Online lenders offer a prequalification loan process.
- You will have access to online loan calculators.
- Online loan applications are more available than in-person loans.
- Online financers also charge low fees (if you're lucky, no fees at all).
Cons:
- You need to submit your sensitive details online.
- You are more at risk of online loan scams.
- You might face higher interest rates compared to in-person loans.
Different Kinds of Loans
Now that you know if you need to apply for a loan online or in person, it is time to learn the different kinds of financing. Bankrate provided some of the following:
Unsecured Personal Loans
This is the most popular kind of loan since it doesn't need any collateral, reducing the risk of losing your assets.
Secured Personal Loans
This loan requires you to provide collateral, which typically comes in the form of an asset. But, it is one of the financing with the lowest interest rates.
Joint/Co-Signed Loans
The joint/co-signed loan is the best option for those who can't qualify for personal financing. All they have to do is have a co-signer with a strong credit history. Family members or relatives are their best options.
Aside from these three popular loans, here are other kinds of financing you need to know:
- Fixed-Rate Loans
- Holiday Loans
- Variable-Rate Loans
- Debt Consolidation Loans
- "Buy Now, Pay Later" Loans
If you want to learn more details about these loans, you can click here.
