There are so many different lenders that we can go to in order to get a loan but many people will just go to the bank that provides their checking account. There are good reasons for doing this, but there are also reasons for looking elsewhere. It is worth looking at the reasonings for both before you decide whether to stick with them or look at other options.
Using checking account provider
You will know your checking account provider and it is probably the case that you like and trust them which is why you are considering using them again. It is important to trust the lender that you are using and by using one you know, you can get over this. They will also not need to do any identity checks on you as they will have done that already when you opened your checking account. They may even not need to do a credit check. These things will make it easier for you and it could speed up the application process as well.
You will also be familiar with the way that things work with regards to how to get in touch with them and that can make things a lot easier. You may even find that because they know you and if they feel you are trusted customer, they may even give you an extra special rate. It is worth asking as you never know.
It will be a lot easier and take you a lot less time to go to them and not do any research about any other options that are available.
Using someone else
It is well worth investigating other lenders even though there are so many advantages of using your current one. The main reason is the cost of the loan. You may find that there are other lenders which are cheaper for bad credit loans that your checking account provider. They could have a significantly lower rate and this could make a big difference to you. It could mean that the cost of your loan will be a lot cheaper. However, you will also need to compare the fees and the term of the loan. In fact, it is best to work out the total cost of the loan so that you know exactly how much you will be paying in costs. Then you can compare the different lenders and work out which will be the most expensive and by how much.
It is also important to look at the repayment amounts. You will probably have to repay a certain amount each month and you will need to see whether you can afford this amount. The amounts will usually be smaller if the loan lasts longer and this can make it more expensive. However, if you miss a repayment, you will have to pay a fee and then you may end up paying more than you would, had you gone with the loan with more affordable repayments. Make sure that you calculate how much you can afford, based on your bank statements and household accounts so that you do not pick a loan that you will not be able to afford.
You may also find that some lenders come more highly recommended that yours. They may have better reviews; your friends and family might recommend you use them or things like that. It is worth looking into them and looking at their website yourself so that you can judge whether you think that they look good to you. It is worth bearing in mind that some reviews might be biased and so it is a good idea to look at a range of different sources of reviews which will hopefully eliminate some of the possible bias. It is also worth bearing in mind that if you are looking at reviews then they are more likely to be negative than positive. This is because people tend to be more likely to leave reviews if they are unhappy rather than if they are contented with a company or service. You may even want to contact them so that you can judge them on how well they respond to your queries.
As you can see, there are a lot of factors that you need to consider and it is important to look into them. It might take some time but it is worth it as it could make a big difference to your experience. This includes both the cost of the loan and other factors about the lender. This means that by researching and selecting the best lender for your needs, you will potentially save money and have a better lending experience. It can make it less stressful and cheaper and so is worth the effort. Once you have gone through this process you will find it easier next time you are looking for a loan as well.