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The opportunity to take credit via the Internet has revolutionized the entire banking system. To get money from the bank, you do not even have to leave your home anymore. However, a large proportion of people, especially those who are very cautious about new solutions, are wondering if such operations carry an increased risk of credit fraud? Is online credit a good solution? We answer for the payday loans with a direct lender.
Banks facilitate online access
Nowadays, the need to visit bank branches is kept to a minimum. Ordering transfers or payments directly from the branch is already a relic of the past, which is used in exceptional situations. It happens that banks discourage their clients by themselves, establishing noticeable high commissions for the execution of an instruction at a unit advisor. In exchange, clients are provided with channels for managing a private account via the Internet.
Another facility concerns the withdrawal of money from the account – there are no more queues at the bank’s cash register, as cash can be withdrawn from virtually any ATM. You can also create an account, deposit or purchase joint stock units via the Internet. What’s more,it is possible to borrow online.
A better lease than a loan to start
Obtaining credit via the internet looks similar to a bank branch. The client submits the application for the allocation of funds for any purpose, and the bank, after assessing its creditworthiness, presents the final loan offer. There is an agreement between the lender and the borrower, fees in the form of commissions and interest or the need to present documents confirming the amount of income received (most often only for people who are not customers of the bank, which offer they want to use).
To get a loan online, just a few mouse clicks without many complicated formalities the bank presents the client with a form to fill online. And after a dozen or so minutes of filling in, the bank issues a decision on granting and loan terms. Then, the client approves the loan terms offered, e.g. by e-mail, and signs the contract via courier or verification transfer. In online banking, all operations confirmed by the owner of the account by relevant codes (sent e.g. to the previously provided telephone number via SMS) are considered legally valid.
On the one hand, it is a great convenience and saves time, but on the other hand, this solution involves the risk of credit fraud. If the passwords and codes to the account go into the wrong hands, there is a high probability that the third party will take the loan.
Credit over the Internet and security
However, to increase the security of its clients, most banks apply the double method of securing credit operations. This is done by telephone verification of the identity of the borrower. Thus, the risk of online credit fraud is at the same level as in the case of traditional loans, as there have also been incidents of impersonation in traditional methods of identity checking on the basis of an ID card.
Some even claim that using such services is safer than going to a bank branch and leaving it with a bag of money. However, thieves do not sleep, even virtual ones, so if you decide to take out a loan online, it’s a good idea to protect your computer against viruses and programs that attempt to access your account data.
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