Credit with online commitment

Enter some data, click on the send button and within a few minutes, an hour or a day the loan approval is in the mailbox – this is what makes online loan approval so attractive for many consumers. But is it really that simple and does a loan approval definitely work in practice within a few minutes or hours?

The instant decision about the loan – possible or not?

Direct banks and credit agencies do not lend without checking income, creditworthiness and collateral. That is a fact. Therefore, no credit institution can actually make a credit decision within an extremely short time. If you apply for a loan from a direct bank via the Internet, you first enter data such as income, profession, age, desired rate and term of the loan and send this request.

Installment loan comparison with immediate decision – January 2020

In the case of a loan with online approval, the loan seeker will receive an answer in a very short time. However, this does not yet represent the final loan approval, but is a preliminary assessment of whether the loan application can be successful based on personal requirements. After that, the actual loan application is first made. For this purpose, the corresponding application forms are filled out, printed, signed online or after downloading, corresponding proof of income must be enclosed.

If the identity verification is carried out by Postident, the corresponding document must also be printed out. The applicant goes to the nearest post office with all documents. When the identity is verified, all documents are sent to the bank. Only then does the bank decide and notify the borrower of this.

Instant Commitment Loan – Compare offers closely

At some direct banks and online credit agencies, loan seekers pay extra for the instant approval. This service can obviously be referred to, but it does not have to be the case, it can also be included as “hidden” costs, eg in the annual percentage rate or in processing fees.

Of course, it is important for every loan seeker to quickly find out whether his loan application will be successful. A “preliminary” immediate decision calms and gives hope. Ultimately, however, all individual parameters are decisive. If the credit check gives negative results or if collateral or guarantors are required for the loan application, then an immediate commitment is not possible at all.

The comparison for the loan with online approval provides information about which providers have it in the program and whether or how much it costs extra. A bank cannot make a loan decision within a few minutes, so it is always important to consider whether additional costs for this service or higher interest rates are worthwhile.

Author: Edison Smith