Intro
If you’re new to the borrowing process, you may be asking yourself whether it’s best to apply for a loan online or in person. It can be a difficult decision. Online loans typically offer faster application processes and approval times as well as more lenient requirements. On the other hand, applying for a loan in person offers the benefit of face-to-face interaction with a loan officer at a physical branch.
About Online Loans
Prospective borrowers can apply for online loans without ever setting foot inside a traditional bank branch. Online application processes are typically streamlined, with faster approval times and more attainable requirements. While a traditional bank may perform a hard credit inquiry before finalizing and approving a loan application, most of the online lenders we work with do not check credit scores. The ones that do, perform a soft credit inquiry, which does not affect your credit score and does not show up on your credit report. The soft credit inquiry is performed only to determine eligibility.
People who need fast access to funds may prefer an online application process. You can submit a quick application via a site like Friendly Lender and receive an immediate response. From there, you can complete the application on a lender’s website. The speed and convenience of an online application, along with more accessible requirements, make it an appealing option for many.
Reasons to Apply Online
- If you need fast access to cash, an online loan can be your best bet. With a streamlined application process that takes place entirely online, you can have funds deposited into your bank account as soon as the next day.
- If you have a less-than-perfect credit history, you may wish to opt for an online loan. Online lenders may have less strict requirements when it comes to credit scores. In fact, we don’t check your credit score or credit report when you apply with us. Tip: Those who wish to improve their credit score can register for Credit Verify! With Credit Verify, you can track your credit score and catch any errors that pop up on your credit report to help optimize your credit health.
- If you lack a prior, established relationship with a bank, you may prefer to apply online. Some banks may offer more favourable loan terms to returning customers. In the absence of such a relationship, you may obtain better terms through an online lender.
About In-Person Loans
As the name suggests, in-person loans require you to visit a lender’s physical location. Typically, you can obtain loans in person through traditional banks and credit unions.
Some applicants may prefer face-to-face interaction with a loan officer. Others may wish to avoid it. Those who have a prior relationship with the financial institution may pay lower rates and fewer fees than they would with an online lender.
Reasons to Apply in Person
- If you have a prior relationship with the bank, you may obtain more favourable rates with them than you would with an online lender. Moreover, an established relationship with the bank can help speed up the application process.
- If you prefer an element of human interaction, you may wish to apply in person. You could get customized advice from the loan officer, in real time.
- If you don’t need the funds right away, you may be better able to tolerate the longer application process and approval time. In this case, you may not need the faster approval process that may often be possible with an online lender.
- If you don’t wish to submit personal information online, you may opt for a more traditional style of application. You can submit any required documents directly to the loan officer, without ever filling out an online form.
Conclusion
In summary, the decision to apply for a loan online or in person can be influenced by a variety of factors. Those who need quick access to cash and those who prefer the speed and convenience of an online application may opt for an online loan. However, those who prefer face-to-face interaction with a loan officer may opt for an in-person loan instead. If you need an online loan, submit a quick online application through Friendly Lender. You will receive an immediate response! We don’t check your credit score or credit report during our quick and easy online application process.
