How online loans can make getting a loan faster and easier
LOS ANGELES, January 27, 2021 / PRNewswire / – The availability of online loans has evolved rapidly over the past decade. Most traditional banks and loan providers have moved online. Plus, there are now online-only banks – and they can offer better rates on savings accounts and banking products because they don’t have as much physical infrastructure or overhead.
However, better interest rates are not the only benefits that online loans bring to borrowers. Online loan makes it faster and easier to obtain a loan and service the loan.
Borrowers can apply directly to their lender or financial institution
Now borrowers can apply for a loan through their bank, lender, or credit union website and get a decision quickly. If the borrower already has an account, the borrower may be able to get a faster decision or more features.
Also, the borrower’s chances of approval may be slightly higher if they are a loyal customer and a user responsible for the debt. The lender can view the applicant’s history as well as their credit score to get more context on the applicant’s ability to take on debt.
When they apply for a loan online from a lender they have worked with before, they may be able to avail better rates based on their easily accessible track record. It can also be a positive change for people who make timely payments while continuing to build their credit.
Borrowers can provide documents faster
Bringing paperwork and visiting a financial institution in person takes up valuable time. In this increasingly busy world, people will save time wherever they can.
Digital financial services like online loans allow borrowers to provide their information much faster, saving them time. Instead of going in person and standing in line, the borrower can simply enter their information online and click a few screens.
Online lenders often let borrowers log in with their bank information to quickly provide some of the information they need.
Lenders can approve and finance borrower loans faster
Automation can help lenders make approval decisions faster. Software can check borrower applications against various criteria and automatically filter applicants who meet or exceed those criteria.
Digital lending also allows borrowers to link accounts to the lender’s website. In doing so, funding can occur more quickly. The lender can pay the borrower’s funds directly into their bank account. Many loans can even be funded on the day they are approved, such as a same day, online cash advance.
Borrowers can repay their loans more easily
With online loan borrowers no longer need to send or deposit their loan payments. They can jump online and pay from their linked bank account with just a few clicks.
The automatic payment features make this even easier. Borrowers can make sure they never miss a payment, avoiding late fees and penalties, by setting up automatic payment.
Additionally, some loans offer borrowers a small discount or slightly reduced interest rate on their loans if they set up an automatic payment. Federal student loans are a prime example.
That said, borrowers should continue to balance their virtual checkbook to avoid overdrafts (going below a $ 0 their account balance). They can ask their bank for overdraft protection features (such as direct deposit from a savings account) to prevent accidental overdrafts when automatic payment is set up.
Note: The information provided in this article is for informational purposes only. Consult a financial advisor about your financial situation.
About Advance America
Founded in 1997, Advance America, the nation’s leading state-licensed consumer lender, seeks to help every client achieve their version of financial stability through a variety of innovative, regulated and transparent credit options.
SOURCE Advancing America