Online or telephone application - which is better?

guest1_2

Does it make any difference with your loan application if you apply on or offline?
I do not require any insurance so don't want the hassle of being badgered into taking out their policy...
Does applying online reduce your chances of getting the loan or is it best to speak to a human?

Thanks

tammyfshr

i always do my applications online.that way there is no pressure on having insurance.you can spend longer making sure you have given all the correct details.the person you speak to on the phone could make a mistake or just not like you so giving more reason to be rejected

Astaroth

They sometimes have different deals on the telephone to online - with my halifax credit card I got a capped fee because I did it over the phone where as online was unlimited fee.... always worth checking which have better deals

mrcow

If you are worried about not being accepted, then perhaps it's better to talk through the application with someone.

Personally I've applied online and by phone for lending before and not noticed much difference (apart from telephone applications can often give you a decision there and then whilst with online applications you have to wait for an answer).

Who are thinking of going with?

gazza975526570

i cant see that the way you actually apply will have any bearing on your chances of being accepted or otherwise as they will simply take into account the info you supply on the app form and your credit history.

When you call to do it the CSA will simply be adding the info into the computer - aka the same way you could do online

mparter

Not strictly the same but a few years back, I applied online with my bank, RBS, for a loan and was refused. A few weeks later I tried again, this time in person in the branch and was accepted

gazza975526570

Had something negative on your credit report since been removed on your credit report in the interim?

mparter

gazza975526570 wrote:

Had something negative on your credit report since been removed on your credit report in the interim?

I didn't check actually. I doubt it but I suppose it's possible.

mrmajika

As a Lloyds TSB call centre employee, I can assure you that Online / internet banking are always, without exception, the way to go. Worst case scenario is that they will be the same as telephone rates, but more often than not, they are a good 3-6% better.

That's the way things work at LTSB anyway! HTH.

enjoyincubus

Online deals are often less profitable as rates have to be more competitive, due to higher non-payment rates for people who apply online and for the lower take-up of PPI (which basically forms the bulk of any profit made on a loan).

This means the bank would only want the applicants of the lowest risk online as it just doesn't have the profit margin to play with that allow it to recruit the riskier customers.

Therefore the score you need to be accepted is usually higher for online applications. This means it is sometimes easier to be accepted through the telephone than it is over the internet.

However if you have lived at your address for a decent amount of time, have existing credit, have never missed payments in the recent past etc etc then it should make no difference how you apply as you would score enough whether on the phone or the internet.