Credit Loans

Loans with Instant Bank Verification: Do They Exist?

If you need money in your bank account to write a check to your landlord or mechanic, you may be thinking about applying for online loans. There are various online loans to choose from, although some lenders offer more benefits than others. 

If you want money as soon as you can get it, look into online loans that offer instant bank verification. You could receive a faster approval process and money sent straight to your bank account. 

What Is an Instant Bank Verification?

An instant bank verification (IBV) is an online process done by lenders to verify an applicant’s information. When a lender requests an instant bank verification from the bank, they are actually asking for bank statements.

Bank statements contain essential information such as your full legal name, address, deposits, withdrawals, and financial expenses made within the month. Bank statements give lenders a clear picture of your current financial state. By looking at your monthly payments and income, lenders can judge whether you would be a reliable borrower. 

Financial institutions with bank verification requirements may also pull your credit report through traditional credit checks. A credit check gives lenders a snapshot of your financial history and your current credit score. If your credit score is low, an instant bank verification could work in your favor. Your bank statements could demonstrate to a lender that you pay bills on time.

The benefit of instant bank verification is that you can receive approval much quicker with instant approval loans. You may then get money sent directly to your bank account in as little as one business day! To complete an instant bank verification, you will usually need to provide your bank name, routing number, and account number. 

What if I Don’t Have a Checking Account for Online Loans?

If you don’t already have a checking account, it’s imperative that you get one! A checking account offers plenty of benefits, such as secure financing, fast money transfers, and automatic payments! You need a bank account if you want same day funding through an online loan agreement. If your credit score is low, the good news is that you can open a bank account with bad credit

Many people are adverse to banks because they have numerous fees and many local branches require a minimum balance. But there are plenty of banks that offer no-fee and no-minimum checking accounts throughout the United States. The bank you choose to work with should offer convenient ATM locations, minimal fees, and convenient online banking features. 

It is easier than ever to open up a free checking account! You don’t even have to visit a bank in person to sign up for a checking account. You can complete the process entirely online. 

For quick verification, you need to meet these requirements:

  • Be at least 18 years of age
  • Have a valid government-issued photo ID
  • Have a Social Security number (SSN) or individual taxpayer identification number (ITIN)
  • Have proof of address (recent utility bill, credit card statement, cellphone bill, etc.)

Once you have opened a checking account, you can easily apply for instant loans to get extra cash for bills!

Is an Instant Bank Verification Secure?

You need to submit your information and documents online to get an online loan. But when you are prompted to provide sensitive information online, you are right to be cautious. Plenty of scam artists online try to steal people’s information for fraudulent purposes. 

Lenders request an instant bank verification to confirm an applicant’s identity and prevent fraudulent activity. But how do you verify if an online lender is legit and that your information is encrypted? 

Check the Website Address 

The easiest way to verify if a website is secure is to check the address bar. The website is safe if the URL starts with HTTPS and not HTTP. HTTPS means the website uses Transport Layer Security (TLS) to encrypt and protect information. 

You can also check if the website address has a lock symbol. The lock symbol signifies that the website is secure since it has a valid digital certificate. If you see a lock symbol, you can rest easy knowing your information is sent securely. 

Check the Domain Name

The domain of a website is the name of the website. To ensure you are visiting a secure website, check the domain if you are redirected to a different page. Scam artists often create domain sites that look similar to valid websites but contain numbers and hyphens. 

Use the Google Transparency Report

There are free websites online that check the validity of URLs. For example, you can use the Google Transparency Report to check for unsafe content. Simply copy and paste the website address to check the website status.

Does Instant Bank Verification Make Money Retrieval Quicker?

If you apply for an online loan, the lender may request an instant bank verification. This verification process is necessary to verify that an applicant has a valid bank account and can afford monthly loan payments. To complete an instant bank verification, you need to provide your bank credentials, such as the bank name, routing number, and account number. 

Once a lender has this information, they can set up a direct deposit on your behalf. Once you are approved and sign a loan agreement, you can receive your money electronically within one business day! You can speed up the loan process and get the money sooner by completing an instant bank verification.

Loan Options That Require Instant Bank Verification

You may be able to find a financial institution that requires instant bank verification, but they are not as common. If you want same day approval for a loan, you can apply for any of the loans listed below. Most lenders will not require instant bank verification. However, they may still provide quick emergency money through a direct deposit. 

Payday Loans

A payday loan is a short term loan that borrowers repay within two weeks. This quick loan offers money for bills in between paychecks. A good credit score is not required to be eligible for a payday loan. With payday loans, the loan amount you could get is typically only a few hundred dollars. But this may not be enough money for costly car repairs or medical bills. A payday loan is convenient, but many people suffer during the repayment process as a result of high-interest rates. 

Bank Loans

A traditional bank offers unsecured installment loans. The loan amounts are typically high with banks, making them an ideal long term financial solution. However, qualification for installment loans depends on the applicant’s credit score. If you have a bad credit history, you will likely have a hard time qualifying for bank loans. 

Car Title Loans

A car title loan is a quick cash loan that is collateral-based. The lender puts a lien on the car title, and the borrower receives money in as little as one business day. Although borrowers with a bad credit score could qualify for high loan amounts, the repayment terms are less than ideal. Interest rates can be very excessive with car title loans. In addition, car title loan borrowers who fall behind on payments risk losing ownership of their car! Even if you need fast money, the lending risk may be too high with car title loans. 

Personal Loans

A personal loan is a type of installment loan available to people with all kinds of financial backgrounds, even individuals with credit difficulties. Personal loans offer flexible credit requirements, so you could qualify for a sizeable loan for an expense like financing a wedding ring with bad credit. Or you can use a personal loan to cover a smaller expense like car maintenance. The interest rates with a personal loan are generally decent, so you won’t be overwhelmed by sky-high fees. 

Should I Choose a Loan With Instant Bank Verification?

If you need a quick cash loan to help cover the cost of unexpected bills, you have many options available to choose from. A few lenders require instant bank verification for quick approval, but not a lot. 

The purpose of an instant bank verification is to confirm your identity and ability to make monthly payments on time. However, most online lenders confirm this information by requesting government documentation (SSN or ITIN) for verification and conducting a credit check. 

Many lenders requiring instant bank verification also provide a direct deposit as the primary money retrieval method. But plenty of online lenders offer cash through direct deposit without instant bank verification. You could get the emergency money you need in as little as one business day with various installment loans, such as personal loans. 

If you need a little financial help to pay bills or finance an expense, the good news is that you have plenty of loan options to choose from! Consider your options carefully before applying with a lender. 

References:

HHTP vs. HTTPS
Open a Checking Account