Intro
Those who are new to borrowing may wonder whether to apply for a loan online or in person. An online application process offers the benefit of speed and convenience as well as more relaxed requirements. An in-person application allows you to interact with a loan officer and ask questions directly. Some people may prefer an element of human interaction, while others may value speed and convenience. Discover the pros and cons of each type of application process.
In-Person Application
You would visit a brick-and-mortar lender and speak with a loan officer face to face. Typically, you would apply in person with traditional financial institutions like banks and credit unions. If you have a preexisting relationship with the financial institution, you may get better rates and fewer fees.
Pros
- Face-to-face interaction and opportunity to get customized advice. A loan officer will be present at the meeting to answer any questions you may have. Those who prefer an element of human interaction may opt for an in-person application process.
- A preexisting relationship with the financial institution may offer certain perks and benefits. If you’re known to the financial institution, you may get the benefit of lower rates or fewer fees than you would get through an online lender.
- You don’t have to submit your personal information online. Those who aren’t comfortable submitting their personal information online may enjoy greater peace of mind knowing that they submitted their documents directly to the loan officer.
Cons
- Slower application process and slower approval times. You may have to wait several days or longer for approval.
- Less convenient. You may have to travel to a distant physical branch, which may involve additional expenses, not to mention an investment of your time and energy.
- Potentially stricter requirements. Banks and credit unions may have more stringent requirements that you have to meet before obtaining a loan.
Online Application
Applying for a loan online offers much greater speed and convenience. You may also face less stringent requirements. Those with low credit scores or without a credit history may have an easier time accessing funds through an online lender. The application process takes place entirely online and does not involve a credit check.
Pros
- Fast access to funds. You can submit a quick application online and get your funds deposited into your bank account in as little as 24 hours.
- Fast and simple application process. You don’t have to leave the comfort of your own home at any point during the application process. It takes only a few minutes.
- You may qualify for a loan more easily, even with a low credit score or an imperfect credit history. For those who have a less-than-perfect credit history, an online loan may be their best bet. Online lenders often are more lenient toward those who have low credit scores. Register with Credit Verify to track your credit score and catch mistakes on your credit report.
Cons
- No face-to-face interaction. This could be a drawback for those who prefer a more traditional application process and the opportunity to ask questions in person.
- You may not get certain perks that you would get if you had a preexisting relationship with a traditional financial institution. Those who have such a relationship may get lower rates and fewer fees than they would with an online lender.
- Those who aren’t technologically savvy may find the online application process more challenging. If you’re not familiar with technology and the Internet, you may face more difficulty with online applications.
Conclusion
In summary, both online loan applications and in-person loan applications offer distinct pros and cons. Those who value fast access to funds, have lower credit scores, or are technologically savvy may prefer online loans. Some may prefer to have a face-to-face interaction with a loan officer in case they have any questions. If you need an online loan, submit a quick online application with LendProConnect. We don’t check your credit score or credit report throughout the simple and quick online application process.
