Many lenders allow customers to submit online applications for financial products such as personal loans, auto loans and other types of credit, according to Wells Fargo and Bank of America. In some cases, approval comes online, while in others, banks follow up with a call to gather more information.Continue Reading
When applying online, lenders ask for such information as the applicant's name, contact information, employment status, current income and housing status. Other questions include the amount of the applicant's monthly rent or mortgage payment, driver's license or state identification number, and Social Security Number, as explained by Wells Fargo. The purpose of these questions is to determine the applicant's credit score and if the applicant's income supports the repayment of the loan.
Lenders who offer online loan applications have preset metrics at which loans receive automatic approval. For customers with excellent credit, personal credit lines, personal loans and auto loans often receive approval automatically within a matter of minutes, notes Bank of America. For customers with more checkered credit histories but who may be able to provide enough information to receive approval, the online response is to call the company and answer more questions. Some customers have credit scores that are too low to merit the phone call, and they receive a denial online.Learn more about Personal Loans