Applying for a Car Loan Application Online vs in Person

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January 27, 2012

If you need an auto loan, you have two choices: fill out an online car loan application or apply for a loan in person. You can find a car loan lender online, or stay local and get a bank car loan or a loan from a credit union. The loan process is fairly similar either way, though you're likely to get faster loan approval from an online lender. This guide will teach you about the specifics of applying for a loan online versus applying in person so you can decide which method is preferable to you.

Applying Online

Applying for a loan online is convenient because it can be done quickly and from the comfort of your home. You can apply to many different lenders at once, making it easy to compare interest rates and financing options. You will receive a very quick response so you know whether or not you've been approved and what your options are. The downside of applying for an online loan is that not all online lenders are trustworthy, and you will have to do extra research before applying to make sure that the supposed lender isn't just scamming for your personal information. To apply for an online loan, simply use the internet to search for online lenders. Do some research to ensure the legitimacy of the company and then fill out the application which will be on their website.

Applying in Person

Applying for a loan in person is less convenient than applying online, but may also give you some advantages. You will better be able to explain your personal situation and enjoy instant verbal communication as opposed to the delay afforded by email. Applying in person can also give you a professional edge since you have the chance to represent yourself more personally and accurately than you would online. To apply for a loan in person, you can check the phone book or online for a list of local banks and credit unions, then give them a call to schedule an appointment.

Information Required for Both

For applying both online or in person, essentially the same information will be required. At the very least, you will need proof of residence and enough information to perform a credit check. The information required may vary by lender and by the specific loan you're applying for. For example, if you are applying for a military car loan, you will need proof of being in active military service. You can call your local lenders or check the websites of online lenders to find out exactly what information you'll have to supply.

Now that you know the advantages and disadvantages of online versus personal loan application, you can choose whichever best suits you. There's no reason why you can't do both, in fact, which will give you a larger pool of potential lenders to choose from when comparing rates and options.

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