Bad Credit - Online

Bad Credit Online
Online Loan Approval with Bad Credit

Having bad credit can make applying for a loan difficult or even impossible. Going online can make it easier and faster for people with bad credit to get loans approved.

The online loan approval process is faster than traditional loan approval because the applicant submits the application directly to the people who actually approve the loans. At many banks, loan officers don’t make loan decisions they submit the loan application to a distant headquarters or office electronically. The people at the office examine the application and make the approval. In an online application, the applicant submits the documents directly to the people who actually make the determination.

This means that loan approval is faster and easier online. Online approval takes less time, and it can be completed from the privacy of your home rather than the office of a bank or loan company. One drawback to online applications is that lenders may require you to fax in a signed approval and other documents.

What you will need for online approval with bad credit

The main requirement that people with bad credit have to have to get an online loan application approved is proof of income. The lender will want to see proof that you have the income needed to pay off the loan. They may require you to present bank statements, pay stubs or a letter from your employer. Many lenders will accept electronic banking statements as proof of income.

Most online lenders will also require your banking information in the form of the routing number and account number of your check account. The routing and account numbers can be found at the bottom of your checks, usually in the lower left hand corner. The online lender requires the banking information because they will deposit the money borrowed in your bank account.

How to make loan approval more likely

People with bad credit can take a number of steps to make approval of their loan applications more likely. The first step to take is to submit proof of all of your income including pay stubs and documentation of other moneys that you may have. Statements from savings accounts and investments such as 401K accounts are excellent indicators of a person’s additional income.

Another way to get loan approval is to submit proof that you’ve been making other payments on time. For example, a letter from your landlord stating that you always pay the rent on time or a record of your mortgage or car loan payments. A letter from your boss stating that you are a good employer could also help increase your chances of getting a loan.

Some roadblocks to loan approval

There are a number of things that can prevent or delay loan approval. The major roadblock to loan approval is obviously lack of documentation of income. One way to help ensure approval and speed approval is to have the documents that prove your income ready before you begin to the search for an online loan.

Another delay you might run into is credit reporting, some lenders will run credit reports. A way to speed up this process is to have a copy of your credit report ready and submit it with the loan application.