In the case of lack of money, many people will choose credit loans, which are different from mortgage, pledge loans and credit loans. More often, the credit of the lender is considered. However, many lenders are not clear about its advantages and disadvantages. Here is a brief introduction.

First, the advantages of credit loans

1, low threshold

When applying for a loan, the lender does not need to provide any collateral (including real estate license and vehicle property right certificate). And you can apply for a loan only on the basis of personal reputation, which is why credit loans are loved by many people, but lenders need to have a stable job and income, as well as a good personal reputation.

2. Quick loans

The materials are well prepared. As long as the lender meets the loan conditions and can provide complete loan procedures, it will arrive as soon as possible.

3. Low risk

For general lending institutions, there are risks from the moment the credit loan is issued, and the loan risk borne by the borrower is relatively small, so there is no need to worry about not paying the loan, and the collateral is auctioned by the lending institution.

Second, the drawbacks of credit loans

1, low limit

Because you choose a credit loan, it means that there is no collateral as a guarantee, so the lending institution will not give you a high loan amount, usually about ten times your monthly income.

2, the cost is high

Lenders increase the loan cost after setting the loan amount, so lenders must choose the loan amount and loan term according to their repayment ability before applying for a loan, so as not to affect their credit history.

After reading the introduction, do you have a certain understanding of the advantages and disadvantages of credit loans? I hope the introduction can bring you some help.