Whether you're shopping for a car, shopping for a home, or shopping in general, if you are looking for a loan to buy anything at all, you should consider your own bank before any other financial entity to get financing. A lot of other places are going to try and offer you different things such as discounts, cash back, or even gifts just for using their company for your financing, but in the end, you aren't getting a great deal. Read on for reasons why you should use your bank for all of your financing needs.
1. Lower Interest Rates
Banks will offer a much lower interest rate, especially if you already bank there. This is because they already know your financial information, as you are using them each and every day for the rest of your banking needs. They can offer you lower rates, as you are already a loyal customer to them, especially if you have had an account with them for a long period of time. If you are looking for a loan, check with your bank first and foremost to see what rates they have available and if you can qualify for a lower rate.
2. Easier To Make Payments
If you are using your own bank to get a loan, it's easier to pay back the loan through your bank. You can have the money automatically withdrawn from your account each month, which could qualify you for a lower interest rate as well. The money is paid right away and is taken out of your bank at this time—no waiting for checks to clear or waiting for the money to get taken out of your account.
3. Multiple Account Discount
If you have a number of accounts with your bank, you could qualify for other perks such as free checking or savings accounts without any fees. It may also help lower any interest rates you have with credit cards through your bank as well. Discounts mean money savings, which is always a good thing.
4. More Options
Your bank may offer you other options for loans, whereas some financial institutions limit what the loan can be used for. Your bank may qualify you for a loan for a set amount of money that can be used to pay something off, to pay for something you've been wanting for a long time, or to do home renovations. Your bank may offer you different types of loans to be used for all of your needs.
If you are in need of a loan, you should check with your own bank to see what options they have for you.