Bank Loan

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A bank loan is what olden people would call a personal loan. These days, borrowing is much easier, and can be done in five minutes online. You don't have to go to a bank, in fact banks are often the last place to go in terms of price.

These days there are plenty more places than a bank to go for a bank loan. Supermarkets and online lenders all offer loans, and there are specialist lenders for flexible or bad credit loan products.

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A huge proportion of people do still go to the bank where they hold their current account to get a loan. Sometimes of course, this is just laziness - it's very rare indeed that a bank loan offers you a better rate than you could find elsewhere. Until we become more demanding, there's no incentive for the banks to reduce their rates while we keep walking through the door.

To balance that opinion, there is an argument that the high street banks are actually the most responsible lenders. Even people with bad debt can obtain £5,000 with one phone call today and part of the reason why banks are expensive lenders is because they usually require a meeting with a branch manager to approve the bank loan. This will take your credit history with the bank into account. It's fair to say that many internet-only operations are falling over themselves to give you money, irrespective of whether you'll be capable of paying it back.

Therefore, a bank loan is likely to be on the expensive side in terms of interest payments, but you will probably get a better class of financial advice - and that's worth something.

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