Rejected for Bank Loans

Banks have always been the mainstream source of funding. However, with the tight economy, bank loans have become harder and harder to qualify and get approved for. Bank loans may also not be the suitable solution especially if you are borrowing money out of an emergency since most banks take time to process loan applications.

Aside from bank loans, you should know that financing options expanding at a very rapid pace. Some of the traditional sources of funds could be personal loans from family and friends or selling of some assets, but if you don’t want to take this route either, you can turn to non-traditional lending institutions.

Alternatives for Bank Loans

Non-traditional lending companies like payday loans, instant loans, cash advance loans and bad credit loans lenders have helped millions of people who are caught in financial distress in the most unexpected moments. If you have bad credit score and have been rejected from bank loans applications, you can try availing some of these loans as good and viable alternatives.

Payday loans are loans designed for people who are employed. Payday loans are meant to be paid on your next payday.

Cash loans and cash advance loans are almost similar in nature as payday loans. Cash loans and cash advance loans are useful solutions for short-term and small scale financial issues.

Bad credit loans, also called sub-prime loans, are granted to people with bad credit score. You are most likely rejected from bank loans because of your poor credit history, so this is where bad credit loans become a good alternative to bank loans.

Advantages of Non-Traditional Loans

Non-traditional loans like those mentioned above possess a couple of advantages that traditional bank loans do not have. For instance, bank loans are time-consuming. Apart from the fact that bank loans tend to require several forms and documents, the processing also takes time. Banks need to check your credit history, your employment status, other sources of income and even inspect if your collateral is passable as an asset.

On the other hand, non-traditional loans like bad credit loans, follow a more straightforward and streamlined processing system. You can opt to apply online or in-person, receive money and pay the loan from the same bank account, and you may not be bothered with submitting too many papers as well.

Nowadays, non-traditional loans have become more efficient and fast to qualify for because they incorporate advanced technology for fast processing. For instance, if you opt to apply for online loans, you do not need to leave your home and just do the whole transaction from your computer.

Bank loans may have been the go-to venue for financial funding, but for special and urgent circumstances, bank loans may not serve that purpose. It’s good to know that we have options apart from bank loans when it comes to resolving financial issues. And even with bad credit, it is still very possible to borrow money without the stress and hassle that often come with mainstream lenders.