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Fast Personal Loans vs. Traditional Loans: Which Is Better?

If you need quick cash, understanding the contrasting features of fast personal loans and traditional loans becomes crucial. Each option comes with its own set of pros and cons, but when time is of the essence, fast personal loans often prove to be the more favorable choice.

Considering the significance of borrowing money, evaluating your alternatives thoroughly is essential. Join us as we delve into the disparities between these loan types to determine the most suitable option for your urgent financial needs.

What Are Traditional Loan Requirements?

Traditional loans often require quite a lot of documentation before you can take one out. What you will require does tend to vary between lenders and types of loans, but here are some of the things you are likely to run into.

You Need Good Credit

Have you checked your credit rating lately? This is often one of the most significant thing that determines whether you are eligible for a traditional loan or not. Your bank (or another lender) will run a credit check before they decide whether they will lend to you.

This means that if you don’t have much credit history or if you have poor credit, you’re likely to get declined. This can further lower your credit score, making it harder to get a loan approval elsewhere.

You can rarely get traditional loans if you don’t have a good track record of borrowing. Some lenders might still deal with you, but the terms may be unattractive. Others will simply refuse to offer you the loan.

You Need Extensive Documentation

Most traditional loans will ask you for a lot of paperwork. What you will be asked for depends on who you are trying to borrow from and how much, but some paperwork that may be required includes:

  • Photo identification
  • A credit report (they will order this on your behalf)
  • Tax returns
  • Bank statements
  • Proof of income (such as pay stubs)

You may be asked for some or all of these, and possibly other documents too. This is one of the things that makes traditional loans take a long time. Gathering this paperwork can be a slow and frustrating process that involves underwriting associates that are in no hurry to move your loan along toward funding.

What Do You Need for a Fast Personal Loan?

When it comes to fast personal loans, like the ones provided by Simple Fast Loans, the advantage lies in their less stringent requirements.

Unlike traditional loans, which often involve a lengthy and complex application process, personal loans from Simple Fast Loans have a streamlined approach. Fewer documents are required and an online verification process is all that is needed to secure your funding.

This means that you can obtain the funds you need with greater ease and efficiency, making them an attractive option for urgent financial needs. Let's explore further to uncover what you need to qualify for a personal loan and how it can benefit you in times of urgency.

You Don’t Necessarily Need Good Credit

A lot of people in today’s world don’t have the kind of credit that banks and traditional lenders want to see. It can be a challenge to keep your credit rating high, and once it’s bad, it’s often difficult to build it back up.

If your credit is below 600 or if you don’t really have any credit history because you haven’t done much borrowing, you might struggle to get a traditional loan.

However, most personal loan companies won’t require you to have great credit. They may perform credit checks, but they work with people in all sorts of situations. Simple Fast Loans works with all types of borrowers and doesn’t turn anyone away for a less-than-sparking credit score.

Personal loan v. traditional loan

You Only Need a Small Amount of Documentation

On the whole, you need a lot less paperwork to apply for a personal loan. For example, with Simple Fast Loans, you’ll only need:

  • Photo identification
  • Proof of income
  • Evidence of an open checking account

In certain instances, there may be a need for additional paperwork, but if that's the case, you will be informed and guided through the process. However, compared to other types of loans, the documentation required for a personal loan is considerably less extensive.

How Quickly Can You Get Traditional Loans?

One of the biggest drawbacks of getting a traditional loan is that it often takes a long time. There are a few reasons for this. One is that the documents take time to be assessed and cleared. In some cases, a third party may underwrite your loan, which can further slow things down.

Another reason is that traditional loan forms tend to be complicated. It can take 10 days or even longer to apply for one of these loans. Furthermore, you will have to wait a long time to find out if you have been fully approved. To that point, there can also be varying stages of approval that may be easy to misunderstand, like conditionally-approved or pending approval for further review.

These limitations are among the reasons why these loans are generally not suitable for urgent financial needs. While they can be helpful for long-term funding purposes, they do not offer a viable solution for immediate financial emergencies.

How Quickly Can You Get Fast Personal Loans?

As you might expect, personal loans tend to be much faster. This is in part because third parties typically do not underwrite them. They are an attractive option when you need the money urgently.

Timing can vary, but with a company like Simple Fast Loans, you will get the money very quickly. This sort of loan is usually aimed at dealing with emergency situations, such as a medical issue or a car repair.

If you don’t want to wait for weeks to find out if you’ve even been approved—let alone to see the cash — a personal loan is likely to be a better option for you. You will get an immediate decision.

How Flexible Are Traditional Loans?

One of the other drawbacks of traditional loans is that they are often fairly inflexible when it comes to repayment. You may be limited to paying back a fixed amount each month, even if you can afford more.

These loans often take years, or even decades, to repay. You may also face fees if you close the loan early or if you need to adjust your payment schedule. These loans are not usually a flexible option.

There can be serious penalties if you are late with payments. This may affect your credit score, which makes it harder to borrow money in the future.

How Flexible Are Personal Loans?

Personal loans can be much more flexible. If you take out a personal loan from Simple Fast Loans and you want to pay it back early, you won’t face any additional charges.

And, what about if you can’t pay the loan back on your agreed schedule? As long as you get in touch in advance and let the company know, they will work with you to find alternative solutions.

This makes personal loans a preferable option for people who don’t want to be stuck with a rigid payment schedule.

How Do You Apply for a Personal Loan From Simple Fast Loans?

So, if it’s so easy to get a personal loan, you might want to know how you apply. Note that you must be over 18, but as long as you are, you can follow the steps below.

  1. Apply on the Simple Fast Loans website by filling in the form.
  2. You will need your name, address, a checking account, and a valid photo ID.
  3. Next, you will need to show proof of income (such as your latest pay stubs) and input your Social Security number.
  4. Submit the form and wait to find out if you’ve been approved.

If you have problems at any point in the process, just get in touch and a member of the Simple Fast Loans team should be able to get you going again.

Get Money From Simple Fast Loans Today!

When you find yourself in urgent need of money and want to avoid the hassle of lengthy paperwork and extensive documentation, a fast personal loan could be the ideal solution for you. Simple Fast Loans offers personal loans tailored to meet your specific needs. The company has simplified the loan requirements, making it incredibly easy for you to access the funds you require.

With Simple Fast Loans, you can skip the arduous process and receive the financial assistance you need promptly. The streamlined approach ensures a smooth and efficient experience, allowing you to address your financial challenges without unnecessary delays.

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