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23 votes
Which statement is true?

online credit is more expensive than bank credit

online credit is less expensive than bank credit

online credit and bank credit are equally expensive

online credit is harder to obtain than bank credit

User Ameera
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4.6k points

1 Answer

12 votes

Answer:

online credit is less expensive than bank credit

Step-by-step explanation:

Online lenders are likely to charge lower rates than banks due to the differences in operating expenses. Online lenders do not incur the cost of operating from a physical building, such as rent and maintenance. They do not have high employee cost as compared to banks. Due to these reasons, online lenders charge lower fees and lower interest rates.

Sometimes online loans appear expensive, but it's because they are unsecured loans. A close comparison between different types of loans will show online lenders offer cheaper loans.

User BishalG
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4.0k points