Bank Loans: Pros And Cons

May 16, 2012 by  Filed under: Loans 

When you are applying for a bank loan there are some pros and cons worth thinking about. Getting the loan will be giving you the cash needed to make the purchase which would not be affordable without it.


*When getting a loan from a bank, you can count on low monthly interest rates for the longevity of the loan.
*Bank loans, when paid off correctly, will put good marks on your credit history giving your credit score a boost.
*With every bank loan that has been paid off in good standing, you put yourself in an even better position for future loans at higher amounts.
*Banks can afford to lend you money.
*A bank is federally regulated to follow the rules of commerce.


*Long application process.
*Detailed information for use of loan money must be disclosed.
*Your credit is a major deciding approval factor.
*Any defaults on your part through the payoff will be reported to the credit bureau.
*Banks can go through the court system to get payment for defaulted loans.
*The banks may place liens on your property to recover loan amount.

These are all things to be considered by any person who is looking for a loan. When you are going to go to a bank and request a loan, you will want to have all the information readily available as the bank lender will have forms to be filled out.

For starters, you will want to dress yourself in a professional manner. You are asking to be part of a business transaction and will want to present yourself well. Any previous banking information will need to be presented in a neat and organized way. When questions are asked, you will want to have easy access to the information. Come prepared with final decisions and information to support them. How much are you asking for? How much can you afford monthly to pay back? What are you going to use the money for?

The loan officer is doing his job and protecting the bank’s money, so you will need to be polite and honest with your answers. If you get frustrated or too pushy, the lender has the right to deny your request. If this is your first loan, go into the meeting knowing that the first loan is always the hardest to obtain. Have a positive attitude and approach towards the lender. Discuss the risks involved with a non-secure loan. What happens if you cannot pay? What procedures will a bank go through in order to get paid? The lender will answer your questions and you will be able to determine if this type of loan is best for you.

You will not know the status of your loan for a few days. This is not a car title loan where you can leave the building with your loan in hand. The lending officer will take the next few days and check out all the information you presented at the meeting. Your credit and employment information will be checked and scrutinized. You have applied for a non-secure loan, meaning the bank will be lending to you on your word that you will pay the money back.

If you have been approved, you will be called back in to meet and go over the paperwork. Here is your time to ask any policy questions, before you sign the documents. Once they are signed, you can still ask, but the transaction is official now.

Obtaining loans is more difficult than ever with so many people’s credit being poor. Secure loans, like auto title loans, are becoming more attractive to those with poor or no credit. Go over all your options. One lender’s denial does not mean you cannot approach a different bank. Be prepared with any information needed to apply for a loan and be ready to pay it back according to the terms in the signed documents. Any type of lender will do what they have to do to retrieve their money.

Approved Money Center Payday Loans are available to you when you need to make that last minute payment. Visit or one of our convenient Texas locations to find out more.

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