Taking out a bank loan can be a great way out. Whether to pay off a previous debt or fulfill a wish, the “extra” money facilitates the payment in cash and guarantees some discounts. Even for other obligations: just negotiate directly with the company you owe, and conditions usually improve.
Obtaining the values, however, deserves consideration. After all, the consumer is acquiring new debt and must pay it on time. So choosing the best bank is an important step. In today’s post, we’ll show you the best online banks to lend money to.
1. Cash App
Cash App is financial transaction software developed by Square Corporation. This payment tool allows you to receive and send money instantly, as well as invest in BTC or shares. It differs from other services by its Visa debit card, which can be used in stores and ATMs.
- It’s free to send, receive and transfer money with just the debit portion of the account. If you need to make debit transfers, it is also possible, and a 3% fee is charged.
- Transfers are made immediately as soon as you send them; you can access them the same day or, in some cases, within three business days.
- You can send up to $250 in seven days and receive up to $1,000 in 30 days. These limits increase as you use the app.
- Cash App is available for iPhone and Android.
Cash App is currently testing the loan feature. As a relatively new banking tool, which has already worked very well, users felt confident trying to borrow through the app. The loan service has been running since December 2023; if you want to understand step by step how to borrow money through Cash App, check out the article made by Almvest.
2. GO2bank
Go2bank is an online bank with low fees and is ideal for mobile devices. The bank has become popular due to the lack of monthly payments and good income with savings. The bank has some tools, such as an electronic gift card, which generate up to 7% refunds in the application. And other types of bonuses like Amazon eGift Card in-app purchases generate a 3% refund.
- The bank has a deposit account. There is no minimum opening deposit or balance requirement, and you can avoid the $5 monthly fee with an eligible direct deposit. It is also possible to deposit money at the bank’s partner retail stores.
- Savings. It is possible to earn 1% APY paid quarterly in savings of up to $5,000 – more than ten times the national average savings rate.
- Loans from this bank are also relatively new, but they are already operating throughout the market.
3. Varo Bank
Varo Bank Account is a real online banking success. It does not charge monthly maintenance fees, and you do not need to maintain a minimum balance in your account. An I.D. government-issued and Social Security number are required for enrollment, but no minimum deposit is required to open your account. All you need is 18 years old and a smartphone to use Varo Bank. The company offers different loan options according to your limit and how often you use the card.
- At Varo, you can get early access to direct deposit payments. Deposits are usually made the same day they are received.
- Varo offers Overdraft No Fee, which allows you to withdraw your checking account up to $50 when making a debit card purchase. There are no fees or interest charges, but you must meet two requirements to qualify.
- You must make five debit purchases per month and receive payroll payments or direct government deposits of at least $1,000 per month.
What is the best bank for a loan?
The definition of the best bank varies with the type of loan to be obtained. If the values are obtained by payroll, for example, the employee of a private company does not have many options: he will only get deals with the institution with an agreement with his company.
When taking a loan from the bank, it is necessary to assess several requirements in addition to interest. What is your relationship with the company? Do you trust your manager? What is the deadline for debt settlement? What are the penalties and fines in case of late payment?
What do other consumers say about the bank’s service? So, before joining a service that has lower interest rates, evaluate all these aspects. A good alternative is to visit complaints websites in your country. There, it is possible to verify customers’ opinions about the bank’s services and whether the financial institution seeks to solve consumer problems.
How to evaluate different loan options?
To reach a common denominator when defining the best bank for a loan, it is essential to consider several aspects. Just as institutions have different practices, the credit model also changes. Among the main factors to be evaluated when choosing an accurate loan are the interest rates, the amount to be released, the terms and conditions of payment. Therefore, the definition will depend on searching for information and adapting to the applicant’s profile.
How to use online simulations in the search for the best loan?
Now that you know how to define the best bank to borrow, it’s time to make the right choice. For this, one of the resources most used by Brazilians is online simulation. Through these tools, it is possible to evaluate the options practically and without leaving the house.
A browser search leads to different modalities of online simulations, which can be done through a simplified registration and some additional information. From there, the resource brings together proposals from other institutions, and you can think of the one that best fits your intention.
In this way, it is possible to anticipate different scenarios, such as financing, debt restructuring, income commitment, and even credit portability. You research quickly and feel more confident about your decisions.
In addition to the simulations available online, another determining factor in choosing the right loan is the country’s economic scenario. This is because different factors influence the calculation of interest rates: the sanitary, government or even price crises can affect interest rates in the country.
