Traditionally, applying for credit would take weeks depending on the lender, the loan terms, and the person’s individual case. Typically, a consumer would head to the local bank, fill out an extremely long application, submit the paperwork, and wait for a response. In a week or so, they would either be approved for or denied credit.
The process was long, and today, some might even find it to be archaic, as it required consumers to submit their entire financial life to loan officers for review. Calling old employers, sending for other financial information, and in some cases, addressing issues on your credit file all became a part of this often long and drawn-out process. Today, however, consumers can reduce their wait times significantly if they simply apply online as opposed to filling out an application through more traditional means.
Let’s take a closer look at just a few reasons why applying for a loan online saves you time.
Electronic Submissions
One of the central reasons that the online application is a much faster process is because the submission process allows consumers and lenders to access information through electronic submissions. For example, if the consumer has to submit information such as tax forms or bank account information, there usually is a process for getting information from the appropriate institutions. Ultimately, most of the information requested by the financial institutions can be accessed electronically, and while in some instances, they may require consumers to submit copies by attachment, there is usually a place where they can submit a .pdf file or another file type.
More Accessible To All Consumers
The online application process has become very accessible to all consumers. Not that the standards are lower for online lenders, but today’s online financial institutions are discovering that traditional methods of determining creditworthiness are not necessarily the only measure of whether a person can pay their debts. For this reason, consumers might find themselves asked fewer questions on an online application than through traditional applications and the information used to determine creditworthiness is different.
Error or Incomplete Applications
When submitting an application online, consumers might find they cannot submit the application until all the information reported is correct and the application is complete. This inability to submit applications filled with errors and omissions makes the process faster for the consumer and the lender because when any of these types of mistakes are present on an application it takes longer to review the file because loan officers have to get in touch with the applicant to get the correct information. The online process generally ferrets out incomplete and error-filled applications by requiring consumers to submit complete applications to get the ball rolling.
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Convenience of Applying
Consumers have the convenience of applying for a loan from anywhere in the world as long as they have an internet connection, a device, and access to the requisite information. Online applications are found online and can be accessed 24/7 as opposed to traditional institutions that are open during usual business hours, which can be very limiting, especially if you are also working in the business environment during normal hours. Ultimately, the online loan process saves time just by making the logistics of applying for a loan more convenient.
Saving Time By Applying Online
Submitting information through the online process has other more tangible benefits. In addition to being a timesaver, the online process lowers the chance that information is lost or even misplaced. Furthermore, the online process is one that is a whole lot more secure than traditional methods of applying for loans online. In the end, this security saves consumers time and effort in having to search for lost, or worse breached, information.