What are the advantages and disadvantages of credit loans?

When we have no collateral and can't get a loan through collateral, it is a good choice to choose a credit loan at this time, but is it easy to apply for a credit loan? What are the advantages and disadvantages of borrowers applying for credit loans?

First, the advantages of credit loans

1, low threshold

Compared with mortgage loans such as real estate mortgage, the threshold of credit loans is relatively low. As long as the borrower has a stable job, a good income, a certain repayment ability and a good personal credit record, he can get a loan.

Step 2 relax quickly

When applying for a credit loan, the borrower has prepared complete information, and his personal conditions and qualifications meet the requirements of the bank. In the fastest case, he can get a loan on the same day, which can effectively solve the situation of tight funds.

Second, the shortcomings of credit loans

Although credit loan has the above two advantages, it also has corresponding disadvantages.

1, short term

If you need a loan for a long time, 10 or even 20 years, it is unlikely to choose a credit loan, because the longest term of a credit loan is 5 years.

2. Low quota

Because the threshold of credit loans is relatively low, in order to control risks, the amount of loans issued by financial institutions is relatively small, which is generally about 10 times of personal monthly income. If you need a lot of money, you'd better use a mortgage.

3. Strict examination and approval

Because there is no collateral, there are strict requirements for loan approval, especially credit review.

The above are the advantages and disadvantages of applying for a credit loan. I hope it will help everyone. Don't remind you to repay on time, so as not to cause a bad credit record.