Applying for a Personal Loan Online vs. In Person

Do online and in-person applications require different information?

Whether you decide to apply for a personal loan online or in person, all lenders will ask for similar details. To make the process easier, it’s a good idea to prepare ahead of time.

First, make sure you know what you want to do with the money you’re borrowing and how long you will need to pay it back. Are you combining higher-interest debts to save on interest? Are you fixing up your house? Or do you need the funds to cover an unexpected expense like repairing your car? 

If you’ve applied for a loan in the past, you are likely familiar with the documents that lenders require to verify your identity and assess your creditworthiness. 

These include:

• Your state-issued ID (driver’s license or other), Social Security number, proof of address, and contact information (phone numbers, email)
• Pay stubs or bank statements that show your individual or household income, typically for the most recent three-month period
• Employment history and contact information for your current employer
• Bank account number and routing number where the lender will deposit funds if you are approved for a loan

If you intend to use the loan for debt consolidation, the lender may also request the balances and account numbers for each creditor.

When does an in-person loan application make sense for borrowers?

You may feel more at ease dealing face-to-face with a familiar staff member at your local branch where you already have personal information on file. You may also prefer the security of knowing who is handling your documents and your loan.

Having a history and existing relationship with your local bank may also help you qualify for a lower rate, even if your credit score is less than ideal. In addition, your bank may be able to offer a specific loan program that fits your needs.  

However, applying for a loan in person may take longer and involve multiple steps. For example, you may need to schedule a time to complete your application. Or you may wait longer to get approved compared with the online process. If the loan officer asks for more documents, it might require another visit to the bank.

Bottom line? Choosing to apply for a loan in person works well if you’re able to visit your bank or credit union during regular business hours and aren’t in a rush to receive your loan. 

What are the benefits of an online personal loan application? 

Most online lenders offer a streamlined application process that may result in a speedy approval and payout of loan funds, often in just a few days. At Discover® Personal Loans, for example, funds can be sent as soon as the next business day after your acceptance. 

Discover Personal Loans also lets you find out your rate and monthly payment in just minutes with our check your rate tool, and there’s no impact to your credit score. To get started, simply enter the loan amount and repayment term you want.

And, as with those physical branches, there can be benefits to having an existing relationship with an online lender: the majority of Discover cardmembers get a better interest rate on a Discover personal loan than non-cardmembers, for instance.

Applying for a personal loan online has advantages and disadvantages, depending on your situation.

Online lenders typically provide a host of resources to answer borrowers’ questions. At Discover, you can review a list of frequently asked questions about the application process. Or if you prefer, you can talk with a U.S.-based loan specialist who will explain your options and help you complete your application.

The online experience may offer more convenience depending on your schedule. If you can’t (or don’t want to) take time from your workday to apply for a personal loan in person, an online lender may be the right solution for you. Online lenders can save you time and travel, especially in remote areas with fewer bank locations. 

What other factors should you consider when applying for a loan online or in person? 

Whether you want to apply online or in person, you should take the time to shop around for the right personal loan.

The process should include comparing costs, repayment terms, and terms and conditions to ensure that the loan fits your situation and offers you the best value. For your convenience, you can use our personal loan calculator to estimate your monthly payments and identify the repayment term that works best for you. 

It’s also important to consider other factors such as the lender’s reputation, the security of your information, and reviews from customers 

Many lenders provide knowledgeable and helpful loan specialists you can speak with to answer questions and address your concerns. In fact, 86% of surveyed debt consolidators who spoke with a Discover Personal Loans specialist about their financial situation told us that the specialist helped them find a solution that worked for them.*

“Initially, I was wary about applying for a personal loan online as I didn't know what to expect plus I've never dealt with Discover before,” a Discover Personal Loans customer commented in February 2024. “Suffice to say, the whole process went smoothly. Discover made the whole application process seamless. And the funding was done quickly as well. Overall, Discover exceeded my expectations.”**

Whether you choose to apply for a personal loan online or in person, make sure to ask your lender to explain the repayment terms and other loan conditions, like whether there are any fees you must pay upfront. 

Discover Personal Loans strives to make your online loan application process convenient, easy, and fast. You can preview your rate in just a few minutes before you apply, without harming your credit score.