Today, when applying for a loan, you will usually get an immediate response. First, whether you will be able to get the loan approved, and then reply to your current application.
We live in a time squeeze and we see our time as something valuable that we do not want to waste. The same applies when applying for a loan. Instead of going to the bank to apply for a loan, which can be a time-consuming process, you can search the internet.
Today, this method is very popular and it is not without reason. Many banks give you answers immediately and if you get the loan application approved, the money is transferred relatively quickly to your account. Applying for a loan online is really easy.
Before applying, you should compare several banks and their loan terms
Who operates with the lowest effective interest rate and fees are important to you, as you can save thousands of dollars in the long run.
Automatic processing of the loan application
Many banks offer the so-called automatic processing of the loan applicant. Once you have filled in the applicant with all the necessary information about you and your income and submitted the application, an algorithm is used to determine whether you are getting a loan or not. This algorithm looks at things like income, age, marital status, payment notes, debt collection cases, etc. This is done in seconds and you will get answers fairly quickly.
Based on your information, this algorithm also calculates which credit score you have and if this score is high enough, you will automatically get the loan application approved.
Low credit score
The bank will either give you a rejection or process your application manually. That is, a case manager at the bank will review your application, which will result in an increase in processing time.
If you get rejected it is often because you have too low income or have payment notes/debt collection cases on you. If you have the opportunity to increase your income and get rid of the remarks/collection cases, you should certainly do so. Once you have improved your income and are free of remarks/debt collection, you can apply for a loan again and you will most likely be granted it.
Even if you get a response and approve your loan application the same day you applied, it does not necessarily mean that the bank can transfer the loan to you just as quickly. First of all, they need to get the debt letter signed by you. If you can sign this digitally with Bank ID, it is the best, as this only takes a few seconds.
If you want the payment to be made as soon as possible, you should check in advance whether the bank has digital signatures and how long the payout time they operate with. Then you do not have to wait for the letter in the mail, which must later be sent back in signed condition, and then wait another few days for the payment. At worst, you have to wait over a week.