When it comes to credit, it usually means getting money in advance to realize a future project. Asking for credit from a financial institution means first and foremost ensuring that you have excellent repayment capacity by taking into account the loan term. But, what should you choose between online credit or conventional credit?
All About Online Credit – How to Set Credit Online?
With the evolution of technology and current means of communication, people looking for credit can opt for the one online. Online credit is characterized by the presence of the Internet since all negotiations are done via this connection.
Developed recently, this type of credit was created for online banks that offer cloud services to customers. Thus, credit applicants must focus on the official websites of their usual banks, organizations offering expertise in loans or online banks.
Before dwelling on the issue of online credit, it is important to know what the term credit means. By definition, a credit is an act that places a certain amount of money at the disposal of one legal or physical person to another, as a loan.
This credit works the same way, except that it is contracted online, with the Internet. It can be said that the online loan is equivalent to the procedure of a credit by correspondence.
In general, the most recent online credit is consumer credit. The latter is granted to individuals wanting to finance a project to purchase goods or services with the help of banks or loan entities. On the other hand, there are also real estate loans that are suitable for individuals wishing to buy a home or a house.
Whether for a consumer loan or real estate loan, the online loan acts in the same way as a general credit. Indeed, a credit always refers to an act of repayment by the debtor vis-à-vis the creditor. The amount of a credit can vary as the repayment term is often spread over several months or years depending on the amount lent to the creditor.
How can I subscribe to an online credit?
Since most of the online credits made are consumer ones, banks offer a brief presentation to customers at the time of purchase. The process of subscribing online mortgage is done quickly and easily.
First, the debtor will have to fill out an application form visible on the site of the chosen entity and with which one wishes to treat. After the form, the borrower sends supporting documents on his financial situation according to the request of the bank. Once the application has been filed, one of the entity’s advisers will contact the prospective borrower to discuss his file.
Regarding consumer credit made online, it is advisable to consult other sites of financial organizations and banks for a comparison. Similar to the initial procedure, these entities will have to ask for the same supporting documents.
After filing the file, it will take 48 hours to 1 week to give the experts time to study the application. If the answer is positive, we receive directly the loan file by mail to sign and return.
The advantages of an online credit
There are many benefits of taking out an online credit. The first privilege provided by this credit is the reduction of travel. Indeed, individuals who opt for this type of credit will not have to leave their home to join an agency, or even the headquarters of a bank.
This will allow consumers to compare, simulate and subscribe directly to their computers. In addition, online credit offers are abundant, making it possible to compete and determine the best rate for a particular project.
The second advantage is time-saving, because it is no longer a question of making an appointment with the advisor of an agency to obtain information concerning a loan. You can sit quietly at home and avoid wasting time between waiting time and decision making. Consumers taking out a loan from an agency will have to go back and forth before signing a contract.
On the other hand, online credit has the particularity of allowing consumers to take time to study offers from banks or lending institutions. The only objective of this technique is to choose the loan that best suits the project, following the comparison.
To do this, the information is all accessible on the website of the chosen bank. In addition, future debtors are spoiled with the presence of an online credit simulator. It is a tool that makes it easy to compare funding credits offered by lending institutions in real time.
What are the disadvantages?
Despite the advantages of online credit, it is also subject to some disadvantages. The main concern is the knowledge of the Web and the use of computer media.
Unlike conventional credit, the processing of the file is done online, that is to say without the presence of human contact. All the steps are done by correspondence and customers must ask questions by mail or telephone, if a concern comes to arise.