Monthly Archives: April 2016

How Can Web Based Lenders Determine Your Identity When Applying Online for a Loan

Every single online loan application will undergo a process to credentials of the online applicant. Once the online verification process has been passed, the staff at the credit card company will begin the process of reviewing your submitted documents. Some banks have customer representatives that will call you at the telephone number you provided to further verify your credentials. The representative will ask you a few questions based on the information you submitted in the online loan application form.

Online lenders can check your identity based on the personal information you have submitted in the online application. The first step of the verification process involved checking your personal information with one of the three American credit bureaus. The credit bureau will look up their large database of consumer credits to see whether the personal information you provide match with their records.

Looking up the database of the credit bureau is the easiest way for the credit card company to verify your identity. The online lender may use the services of companies like RSA to find more information on the application if the applicant does not have sufficient credit history. This includes people who just immigrate or young people who don’t have experience obtaining a loan before.

The online application system will also perform the same check that is done when people submit their credit card/debit pin number for online purchase. This is done to make sure that the person who is applying for the online loan is not an identity thief that is currently on the loose.

There may be a customer representative calling you to ask you a few out-of-wallet questions. These security questions are chosen by the applicant in the online application form. So, it is important to always record down the answer you set for the out-of-wallet questions you choose in the online application form.

These out-of-wallet security questions are randomly generated. An example question would be the street number you used to live 10 years ago. It is estimated that about 5 – 15% of applicants will not pass the out-of-wallet questions. If you fail to provide the correct answer to the out-of-wallet question, your application for the online loan will almost always be automatically be denied. Or, they may make arrange to manually review your application.

Many credit card companies will also check your credit report to determine your credit score. In addition, they will check with your employer to verify your employment status and the income you receive every month. The amount of loan they approve for your application will depend on your current income. Finally, there will be a dedicated personnel that check every single detail on your application and make sure that your application really meet the minimum requirement for getting approved.

In conclusion, the loan company needs to check the identity of the applicant for security reasons and to determine whether he is capable of paying back. Therefore, you must make sure to always submit complete identity documents to increase the speed of the loan approval