The landscape of consumer lending has come a long way in recent years thanks to ever-evolving technological advancement. Nowadays, you no longer have to line up at the bank and wait your turn to apply for a loan. It’s as simple as applying from the comfort of your sofa thanks to the convenience and prevalence of online loans.
But some people might prefer the in-person experience of applying for a loan. Perhaps you’re skeptical of the online loan process, or you’ve had a bad past experience. Whatever the case, it will come down to what you value the most.
If you’re thinking of applying for a loan but can’t decide whether to do it in person, or online, this blog could help you come to the right decision that suits you.
An Online Loan vs. an In-Person Loan
Before you go ahead and make your decision, let’s take a look at the benefits and drawbacks of each type of loan. Ultimately, these factors will help you decide whether an online or in-person loan suits you better:
An online loan:
- These types of loans offer pre-qualification which doesn’t hugely impact your credit score
- You’re guaranteed fast and efficient loan approval and may receive the funds within the same day
- You’ll have to forgo personalized interaction
- You’ll have to fill out your own paperwork online and be fairly technologically savvy
An in-person loan:
- If you have a pre-existing relationship with a bank you’ll most likely have higher approval odds
- You’re offered better interest rates and more favorable loan terms
- There is no pre-qualification process, meaning that you’re unable to see loan rates, and terms, which could impact your credit score
- Loan approval and receiving money could take several days — sometimes up to a week
- You get personalized service and guidance with regard to the best type of loan for your needs
At the end of the day, the type of loan you choose comes down to what matters to you most. Here are some critical questions to ask yourself to help you come to a decision:
Are You Skeptical About Using an Online Lender?
The reality of applying for a loan through an online lender is that you’ll have to share important, confidential information online. Some of this information includes your bank account details, social insurance number, your education history, and more.
If this does not sit right with you or makes you feel uncomfortable, then an in-person loan through a brick-and-mortar bank might be a better option.
To add to this, managing an online loan means dealing with customer service reps on an online basis, only. This means you’ll need to be both technologically and financially savvy.
How Can You Tell an Online Lender is Safe?
There is a lot of misconception surrounding online loans and lenders. Some people are under the impression that online lenders are only out to scam you, but this couldn’t be further from the truth.
Yes, there are those online scammers that exist, but that shouldn’t tarnish the reputation of every other reputable online lender. If you’re skeptical about the safety of an online loan, here’s what you need to know:
- Loans from online lenders are actually 100 percent safe as long as you do your research and they have a good reputation to stand by
- A reputable lender will always run a credit check, disclose the terms and costs of the loan, and ensure that a loan application will not damage your credit or finances before approving it
Are You Looking for Personalized Interaction?
As mentioned before, an online loan means dealing with customer service representatives in virtual reality. If you’re looking for a more personalized experience, an in-person loan is your go-to.
If you’re a person who values personal interaction, and you want the security of knowing who is dealing with your loan, then visiting a physical bank is the better route to go. If you already have a relationship with a bank, you might also be able to negotiate a lower interest rate and better loan terms if you work with them face-to-face.
How Urgently Do You Need Funding?
Most of the time, this is a major deciding factor for many people. The urgency for funds can really impact your decision-making. If you’re in need of money in a hurry, an online loan is your best bet.
The truth is that online loans process very quickly. You can receive the funds in your bank account on the same day (in most cases). A traditional loan takes a little longer to process — typically a few days before you receive approval and the funds in your bank account.
How Do You Find the Best Loan?
The best loan is one that completely suits your needs. Ultimately, it comes down to what you need in terms of funding, how quickly you need it, and the repayment terms. This being said, it’s still important to compare loan features and offers before you decide on a lender — whether it’s online or with a traditional bank.
Make sure you do some research and compare multiple offers from different lenders to ensure you’re getting the best value for your particular situation.
Bear in mind that online lenders are more likely to offer pre-qualification and an insight into the rates you’ll pay, before signing up for a loan. Traditional banks might not be so quick to offer this information, upfront.
Applying for an Online Loan Has Never Been Easier
If you’re sold on the idea of applying for an online loan, it’s essential to work with a reputable, trustworthy lender. This is where Eastern Loans has you covered.
Get the funds you need in a fast, convenient, safe, and simple manner, without the complicated financial approval process of many traditional lenders. Learn more about how our online loan process works.