Are Direct Cash Lenders or Banks Better?

Are direct cash lenders or traditional banks better for simple fast loans? Like so many questions surrounding cash advance loans, the answer is a rather convoluted yes and no, but please allow us a moment to explain.

If you are a member of a credit union, or live in a relatively small town where the loan manager has breakfast in the same diner every day, you may be better off getting a traditional signature loan from your local bank.

Likewise, even if you live in the big cities and you know you have solid gold credit, it should be relatively easy to get instant cash loans up to ten thousand dollars from the banking institution you use. Most of these loans are short term signature loans that do not require any collateral, so the requirements and the basis for the principal amount of the loan may vary.

In terms of smaller, short term installment loans like most cash advance loans, the principal amount or the amount you can borrow is based on your income and your ability to pay the loan back. When banks offer signature loans, the requirements tend to be a bit different.

Most traditional banks and financial institutions do offer signature loans or other short term installment loans, but the requirements tend to be based on credit rating rather than just the ability to pay back the loan on time.

Thus, while cash advance loans and other types of short-term installment and signature loans are available at traditional financial institutions and banks, they may not be readily available for all borrowers. Bad credit loans may be available at the more traditional banks but they will come at a cost, either in terms of interest or the down payment required.

There are some people who come into a large sum of money who take a rather unorthodox approach to credit repair. It is possible to get bad credit loans at more traditional banks, but they tend to require a higher down payment and may incur additional interest charges.

In the more unorthodox approach, people have been known to use the entire payment amount, not so much as a down payment, but as a security for the loan. By creating a separate bank account with the full loan amount including interest and other fees, it is quite easy to get a bad credit loan at a traditional bank.

Unfortunately, not very many people are going to be in a financial position to undertake such an expense, especially in the middle of a personal financial crisis. Another option for instant cash advance loans from traditional banks may be to pay a higher interest rate, though even these are capped and only available to a limited degree.

When you are in the midst of a personal financial crisis, the interest rates on an emergency cash advance loan may not seem like the most pressing matter, but in reality, this should be a concern. Even if you do have good credits, some banks may charge higher interest rates on an emergency signature loan.

Effectively, there may be very little difference between the interest rates at the bank and the interest rates of direct cash lenders for emergency loans, but the banks may also take much more time to approve the loan, and this also has to be taken into consideration by the borrower.

It should be noted also that the upper limits for interest rates on instant payday loans from direct cash lenders and the interest rates of the banks are regulated by the federal government through the Fairness in Lending Act. Since both these types of commercial lenders are vying for your business, and working in direct competition, there may also be similarly competitive interest rates.

It is actually possible for some banks to loan cash with no credit check required but it tends to be the exception rather than the rule. It may be more common in credit unions and small town, private banks where all of the parties know each other and work together on a regular basis?

Top tier banks and banks in large cities where personal interaction may be a bit more limited tend not to loan cash without credit checks and an extensive volume of paperwork. It generally is more a matter of practicality in terms of conducting business than it is a personal commentary on you.

However, when the banks cannot rely on personal knowledge, they have to work within the accepted parameters that determine whether or not they are making a sound investment. In terms of instant cash loans and other signature loans, that generally means that they have to run a credit check before they will consider lending out any money.

Companies like Safe Loan work with many different direct cash lenders who make instant cash loans up to ten thousand dollars available with almost certain guaranteed approval for people who meet a minimal set of requirements. If you really want to find the best deals on instant payday advance loans with direct cash lenders, you need to shop for the best deal.

Unfortunately, shopping for the best deals on cash loans can be difficult as it requires that you run a credit check with virtually every lender. You may be able to run your own credit check and take a copy of your credit score with you, but most lenders are going to want to run a credit check anyhow.

When you use a company like Safe Loan to find the best deals on instant cash loans, you still ultimately deal with the direct cash lenders who guarantee approval for cash advance loans. Flash Financial Guide just does all of the hard work and the shopping for you.