Along with instant credit, another interesting type of loan has emerged: consumer credit. These are definitely the cheapest of all readily available short term loans. They can be obtained either by going to the bank or online. Everything for your convenience!
Consumer loans are not only provided by small companies in this business
Banks also provide such loans. In addition, it is worth noting that banks are not only offering such loans but are also leaders in providing them. The vast majority of consumer loans are made by banks and account for a very significant part of all banks’ income. Apart from long-term home loans, these loans are almost the only ones that banks provide.
The fact that these credits are not as loud and often advertised as other types of loans does not really mean that they are inferior. On the contrary, they have their own advantages over others. However, such benefits can only be understood when one understands what consumer credit is at all and how it differs from fast credit. The easiest way to understand this is to compare these types of credits directly with each other. That is what we will do now.
Differences in consumer credit compared to fast credit
What Do We Know About Quick Credits? The basic fact is that they are readily available. It doesn’t take much effort to get credit. All the information is available on the internet and you will also find a detailed loan application guide on each page of the lender. The fact that hundreds of thousands of people have already used this service only shows that they do not really need special skills.
So we have the first thing that partially defines instant credit: its easy availability. However, another aspect directly related to them is their speed of delivery. Previously, all instant credits were advertised as if they were granted within 15 minutes. And that was true, instant credit could actually be granted in such a short time. Even now, there are companies that can approve a credit application within a quarter of an hour. However, it is difficult to guarantee it now because of the various amendments to the law that has limited creditors’ ability to grant credit so quickly every time.
Ease, convenience and speed – this is what defines instant credit. Consumer loans in this place do not differ significantly but are significant enough to be talked about. In the past, consumer credit was not even granted online. To get it, you always had to go to the bank and submit a paper application. It was only with the advent of instant loans that the competitive environment for this thing to change was created. In response, commercial banks have streamlined their credit granting process, and now online consumer loans are as easy as instant loans.
Just to mention that they are not issued so quickly and can take well over 15 minutes. But getting an answer on the same day is definitely a natural phenomenon.
Probably the main difference that distinguishes consumer loans
Instant loans are their cost. Fast loans are known as very expensive. In a sense, this is the price the customer has to pay for all the amenities and easy accessibility. Meanwhile, consumer credit may not be so quick, but its interest rate is significantly lower. The consumer loan interest rate can be lower by up to several times compared to fast credits. Consumer loans, therefore, have a huge plus: their cost.
Therefore, when choosing between different types of loans you basically need to underestimate what you value more: affordability and quick or interest rate. If you value the latter factor the most, then online consumer credit should be your priority.