Advantages of an Installment Loan Approval
On the Internet, there are numerous offers on a installment loan with instant confirmation. Such an offer sounds tempting, as you can seem to be immediately sure whether the loan is granted or not. The immediate commitment has a certain significance, but does not constitute a credit decision that is binding on the applicant or the bank.
What are the Advantages of an Installment Loan with Instant Confirmation?
If you are interested in an instant loan installment loan, you will not need much time searching the Internet to find the first results. The quick settlement can usually be read by name, as online loans are often referred to by the banks as instant or direct credit, in order to suggest a quick loan decision. In fact, however, this can only be done after a final check. This means that an employee of the bank has the documents in order to be able to make a credit decision on the basis of this.
At the latest here, the installment loan with immediate approval can only meet its description to a limited extent, because the dispatch of the required documents also takes time. In addition, the identity of the applicant must be verified, which is done by PostIdent procedure. But since the loan with immediate promise is not only issued by direct banks, the application can often be made online at a normal branch bank. The advantage: If a branch is nearby, the applicant can bring the required documents by himself and still enjoy the often discounted conditions. Especially online loans are often provided with lower processing fees, which makes the offers attractive by a lower effective interest rate.
What does “Immediate Promise” Actually Mean?
This raises the question of how fast an installment loan can be with immediate approval. An instant confirmation is usually generated automatically by verifying the information given during the online application virtually by machine. The loan amount and monthly installment can be seen from the application, the income situation is already indicated in such cases, which can be estimated in advance whether the loan is approved or not. If the go-ahead is given the green light, this is indeed a good sign, but nothing to rely on. So no contracts should be concluded yet, because there is still the possibility of a rejection, even if the probability for it is not quite so high. Finally, automated credit checking can not include all factors. For example, future salary increases or a planned job change will be disregarded.
For a comparison of the various loan offers, customers should take time, because there are many quotes on an installment loan with immediate approval and their terms may differ significantly. Also, an installment loan with immediate approval may take up to one week to process before the amount appears on your own checking account. Therefore, this feature should not be relevant to the decision. More important – as with all installment loans – is the comparison of target and effective interest rates, installment size and the special repayment terms. Credit comparison sites on the Internet can help with the search, but here it should be noted that only the offers of certain banks and credit institutions are mentioned.