Everyone knows that online loans in Ohio have become more prevalent throughout the past few years. Most lenders will save the cost of office space and hiring dedicated staff if they know they can offer the same type of loan online. Most people associate the online lending environment with payday lenders and other types of short term loans. This is far from the case though. Did you know more Ohioans apply for loans online instead of at their neighborhood bank or credit union? As of a few years ago, advanced lending software has made it easier to handle the process online. Besides local cash advance lenders we see an increase in companies that offer short term funding. It’s also possible to get an online installment loan or personal loan from your local bank or credit union. Let’s get into the details of why it’s now much easier and more acceptable to get fast next day cash.
Retail lenders have operated in Ohio for decades. There have been dozens direct lenders in Columbus and Cleveland for years that fund payday loans and other types of cash advances. We all know there are hundreds of companies all throughout the state that fund online payday loans. These lenders are mom and pop shops who rely on word of mouth and great customer service to bring in new applicants. Some even provide car title loans and auto equity funding. That’s all changed over the past few years though with the increased amount of cash advance companies. As of last year it’s much easier and quicker to be approved for an installment loan online opposed to a personal loan company. We have a list of over 15 companies and credit access business firms that offer loans. With this list you can search and compare features that each lender provides. The reason for this increase is because most banks and credit unions find it easier to process loan applications online. There’s far less paperwork and they don’t need to accommodate someone in person. Another reason is that there’s no longer a need to pay a mortgage or rent for a physical office in the state.
Even with these advantages, there are downfalls when it comes to same day financing. What happens if banks focus on online loans in Ohio or the traditional method. When someone applies for a loan online, the lender looses the face to face conversation and interaction. It’s difficult to gauge an applicant if they are never seen in person. Also, many apply for payday loans under fake names and use other incorrect information. There are also online banking laws in place that protect consumers and lenders from fraud. We tell all readers to read about the latest cash advance lending changes that may affect banks and credit unions. It’s much easier to detect fraud and other issues when meeting someone in person versus having them approved online. The Us Government has seen a huge increases in identity theft among credit applicants. Problems like identity theft cause consumers to lose out on short term funding because they have a bad credit reporting score. We see more lenders fall victim to identity theft when submitting an application for an online loan.
One hybrid system that we heard about in Ohio is doing pretty well. A client will apply for and be approved for an online payday loan or installment loan. The difference though, is that they need to still go into a local regional site to sign documents and get their cash. This has many benefits both the lender and applicant. It’s more difficult for those who take out financing on their car title. Not only do they need to verify documents. Of note, the hybrid option get’s complicated when you factor in the current situation where many of us are facing a stay at home order. The COVID-19 pandemic makes it hard to meet with a lender in person and many Ohio payday loan companies are adapting with new policies. Applicants will also need to confirm pink slips with the DMV and have a visual auto inspection. The lender has more piece of mind as they know the person exists and is not trying to commit identity theft. The consumer knows the lender is real and they can also get cash for their payday loan that same day. It seems this new method of OH cash advances is the best course of action. Let’s hope more companies roll out a system like this. Borrowers and lenders need a better way to apply for and underwrite a basic Ohio payday loan.