Should I Borrow from the Place I do my Banking?

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If you want a loan, then you might think that that it will be best to go with the bank that you currently use. Although this might have some advantages, it is worth being aware of the advantages and disadvantages before you make up your mind.

Advantages of Borrowing from Your Bank

If you want to take out any new financial product with your current bank, then you will have some advantages. This is because they will already have your details, so you will not need to necessarily provide so much information and they will not need to do an ID check as they will have already done one. However, if you are taking out a loan, then it is very likely that they will do a credit check as your credit status may have changed since you took out other products with. By not having to have an ID check, it could make the application process quicker and easier for you.

You may be set up with online or telephone banking and this means that you might be able to manage your account easily in the same way that you do your others and you will not have to set up new passwords or learn a new system which could be very handy for you.

You may like to deal with a local branch and so if you have one with your local bank, then you will know where it is and what the staff are like and know that you will still be able to deal with them. However, there other banks that might have branches local to you as well.

You may think that as a customer, your bank is more likely to lend to you than other banks. However, it is very hard to know whether this will be the case.

You will know what your bank is like and what they are like to deal with and therefore you could potentially feel more confident dealing with them compared to banks that you do not know. You may worry that they might not have such good customer service or things like that. You could contact them before deciding though and see what they are like.

Disadvantages of Borrowing from Your Bank

If you just stick with your bank then you could be missing out on better products. You may find that there are other banks that have products which will better value for money than what your bank is offering and this means that you will be miss out on those better products if you do not look elsewhere. This could mean that you end up paying more money than necessary when you borrow money or you get less interest on your savings than you might be able to get elsewhere. Therefore, you could be missing out.

You may also find that there are banks which provide products which are more suitable for your needs than your current bank. They might even have better customer service and be more convenient to use as well. Until you look around and see what is available, you will not know whether what you have is good or not, compared to what else is available.

So, for the sake of convenience and familiarity you could end up getting worse value for money. You will have to decide whether you are happy with that or whether you want to go elsewhere. It is sensible to take a look at what is available and then you will be able to decide whether you feel that you will be able to borrow from your bank with confidence knowing that you are happy with the deal you are getting or whether you want to try elsewhere.

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