You Don’t Have to Go to Your Bank for Long-Term Loans
How many people have tried to go to the same bank they have an account with and request a loan, then left disappointed after they were turned down? Doing business with a bank is no guarantee that you will be approved for a loan. In fact, it really doesn’t have much bearing on the approval process at all.
The only way it really helps is that you can easily show the loan officer how much money you have coming in each month, but that may not be enough to warrant a loan approval. Banks will want to look at your credit history as an indicator for whether or not you are a risk to them. They look for people who have a good credit history and who are almost guaranteed to pay back their loans on time.
So, if you have been turned down by your bank, what recourse do you have? You could go with payday loans or other short-term, high-interest loans, but what about if you need a large sum of money? Is there any way to obtain a long-term loan outside of a bank?
Thankfully, there is. Let’s discuss your options.
A Bold New Day for Lending
It used to be true that the only way to obtain long-term loans was through a bank. If you went with a payday lender or some other fast cash provider, you would only be allowed to take out short-term loans. That doesn’t hold true anymore, as there are now many lenders outside of banking channels that can help you with a long-term loan.
It was obvious that there was a void there that needed to be filled, since banks were turning away record numbers of loan applicants over the past few years. These loan denials could easily be attributed to the changing global economy and the recession that had affected a large part of the world. People simply didn’t have very good credit, on the whole, following the recession. Banks were less and less willing to approve large loans because of the widespread credit problems.
That left a hole that no one was filling. There was a mass of underserved customers who were not getting what they needed from banks or fast cash lenders. That is why some lenders stepped in to meet the market demand for convenient, long-term loans outside of the normal banking industry.
How Long-Term Lending Works
You can apply for a long-term loan in the same way you would for a short-term one- online, from the convenience of your own home. If you have paid attention to the lending market over the past few years, you would see that it has moved mostly online, with numerous new lenders entering the market and making use of the digital store space.
You can even enjoy an application process that does not require your credit history. That’s right- there are long-term loans available that don’t need a credit check to be approved. That’s excellent news for people who need the money but don’t have the kind of credit score to back up a bank loan.
Online lenders are willing to take a chance on these people. They may protect themselves with slightly higher interest rates than some banks, but they are offering lending services that really aren’t available anywhere else.
Like fast cash loans, long-term lending online can happen completely electronically. You can apply online, have your application looked over remotely by the lending service and then have the money deposited in your bank account hours later. In general, it should take a few hours or less for your loan to be approved. The deposit of money into your bank should take around 24 hours.
The application process will likely involve submitting more detailed financial information than what you would for a short-term loan, and that’s understandable. The lender is taking a greater risk in giving out long-term loans, and they want to be as sure as they can that the potential borrower will be able to pay them back on time.
But your credit history does not have to play an important role in this process. If you have made some bad financial decisions in the past, that doesn’t have to haunt you as you attempt to get a long-term loan. You can still get the money you need and not have to be rejected by a bank in the process.