Many payday and installment lenders use a banking tool called Instant Bank Verification. While some consumers are skeptical using their online banking credentials, the product is regulated by the FDIC and very safe through a reputable lender. Instant Bank Verification provides a read-only copy of your statement so lenders can verify your employment status.
The data is provided to the software by the consumer’s bank and no login information is ever stored. This tool is much safer than emailing your documents like the good old days.
The incredible rise of identity theft in the last 10 years has challenged all lenders to become smarter in their verification of borrowers. Application fraud occurs when a fraudster uses personal information of someone else without their consent or knowledge. It is the #1 cause of fraud in the short-term loan environment.
Banking verification is a very successful tool against people with bad intent. They might be able to fill someone else’s information into an application, but proving they have steady income into a checking account is another hurdle entirely.
A big reason payday lenders can provide unsecure loans to borrowers, without running their credit score, is the ability to verify the bank account. An unsecure loan is one of the most difficult to provide since the lender doesn’t have collateral to recoup if the loan goes bad. This allows a borrower who isn’t eligible for a loan with their bank, to acquire cash when they really need it.
When an emergency happens, and you need fast cash to cover it, a short-term loan could be the answer. Once the lender obtains your online bank statement, a decision can usually be made within minutes.
Many lenders also offer same-day financing which makes it one of the fastest ways in the market to obtain the cash you need right away. Try going into your local bank and walking out with a loan in 15 minutes.
As one of the highest rated and most reputable lenders in the Southeast, Lending Bear is always ready to assist with short-term payday loans, installment loans, title loans and pawn loans. A licensed lender in Alabama, Florida, Louisiana, South Carolina and Tennessee.
Apply online today: www.lendingbear.com/apply-now/