If you have taken out a loan from an online lender and were satisfied with the terms, it is perfectly normal to want to apply for another one. But is it the right decision? From your personal experience, you already know that the application procedure for online loans at this particular company is simplified and you can get the desired amount of money quickly.
However, there might be some drawbacks that you should also pay attention to. For example, many loan companies in Bulgaria offer special discounts or promotions like interest-free first credit which are intended for new customers only. If you apply for a second loan, you won’t be able to take advantage of them. Let’s see what are the other pros and cons of using the same online loan lender:
Taking a Loan from Your Present Lender – The Advantages
When you are used to the terms of one lender, it might not be such a good idea to look for other providers of online loans indeed. After all, you know how things work with your current lender – how long it takes to apply for a loan and get approved, what documents are needed, how you can get the sum, etc. Keep in mind that other lenders can always require additional documents or fees for faster processing. These supplemental requirements are typical for bank loans.
Another advantage of using the same lender is that they already have information about you as a borrower. If you paid your installments on the previous loan on time, they know you are a loyal customer. Whereas, if you apply for a loan from an unknown lender, they have yet to check your credit history. In that line of thought, you can also get discounts for existing customers. Not all special offers are for new clients. An example of a reputable credit company operating in Bulgaria that offers favorable conditions and discounts to all customers is Vivus.
An important advantage may also be that your current lender has offered you a convenient method of obtaining the loan amount. The same applies to the method of paying the monthly installments. When it comes to online loans, payment methods can vary from lender to lender. Some support only bank transfer and cards, while others offer the options EasyPay and ePay. If you have found the most suitable option for you, keep in mind it might not be available elsewhere.
Are There Cons of Continuing with Your Current Lender
Of course, there are some downsides to continuing to use the same loan lender. Especially if it is about bank loans, it might not be very smart to provide all documents all over again and go through the long procedure of the bank. You can simply look for an online lender that grants quick loans within minutes and requires only an ID card. In fact, many lenders offer an-interest free first loans to new clients. So, the biggest drawback of using your current lender is that you can’t take advantage of such an offer twice. That is why most users are looking to explore other offers for online loans with 0% interest instead of using their present lender.
Unexpected expenses can always occur and you might have to take out a new loan while you haven’t paid your current loan. This may not be possible from the same lender and we can count it as another disadvantage. But if you pay your installments on time and don’t have a bad credit history, you can get approved by other financial companies. We suggest you look for non-bank institutions offering online loans as they will give you the fastest response and won’t require a stack of documents. If you plan to use the same online loan lender, you will miss out on lots of other offers. They can be quite more profitable than your current terms. So, don’t choose the same lender just because you are used to it. Never hesitate to explore other options for quick online loans.
As you can see, using the same loan lender has many advantages and disadvantages. To assess whether this is the right decision for you, you still need to consider your financial situation. If other lenders take higher interest rates, it is only natural to stay with your current one. But if you want to get an interest-rate free first loan, you will have to choose another lender and become their new customer. So as with any decision regarding your financial state, we would advise you to think it through carefully beforehand.