SOME CARD INFO MAY BE OUTDATED
This page includes information about these cards, currently unavailable on NerdWallet. The information has been collected by NerdWallet and has not been provided or reviewed by the card issuer.
Whether you should apply for a personal loan online or in person depends on your borrowing needs and personal preferences.
No matter how you apply, the best lender is usually the one that offers the lowest interest rate. That’s why it’s a good idea to compare personal loans from multiple lenders.
» Read our guide: How to get a personal loan
Similarities and differences between online and in-person loans
Banks, credit unions and online lenders all offer personal loans. Many banks and credit unions give applicants the option to either apply online, over the phone or in person, though some require a branch visit — especially for new customers. Online lenders with no physical storefronts only offer online applications.
Here’s what is the same and what is different about applying for a loan online vs. in person.
Similarities: Regardless of whether you apply online or in person, the requirements and information requested on the application will generally be the same. Lenders typically require information about your credit history, income and existing debt.
You can expect to provide personal information like your Social Security number and address on a personal loan application. When you apply, the lender will likely conduct a hard credit inquiry, which can cause your credit score to drop slightly.
Differences: Your application experience differs in the timing, convenience and type of customer support you may receive when getting your loan.
If you want to apply from the comfort of home, get a fast approval decision and compare multiple loan offers, an online application makes sense.
However, if you favor face-to-face customer support, don’t have reliable internet access or aren’t comfortable submitting your personal and financial information online, opt for applying in person at a bank or credit union.
🤓 Nerdy Tip
Many lenders with brick-and-mortar locations also maintain an online presence. It is possible to apply online with a bank or credit union but then visit a nearby branch for in-person support if you have a question or concern during the repayment period. » MORE: Where to get a personal loan
Pros and cons of online loans
Pros
Pre-qualification is widely available.
Fast approval and loan disbursement.
Apply any time of day.
Cons
You must share personal information online.
Limited or no human interaction.
May be difficult to distinguish reputable lenders from predatory ones.
Advantages of applying for a loan online
- Pre-qualification is widely available. Many online lenders let you pre-qualify to see your potential loan amount, rate and repayment term without a hard credit check. You can use that information to compare offers. NerdWallet recommends pre-qualifying with multiple lenders before formally applying for a personal loan.
- Fast approval and loan disbursement. Many online lenders can process loan applications within minutes. Some can fund a loan the same day they approve the application or the following business day.
- Apply any time of day. Unlike brick-and-mortar banks, you don’t need to schedule an appointment or work around business hours to apply for a loan online.
» MORE: Best online lenders
Disadvantages of applying for a loan online
- You must share personal information online. With an online loan application, you must electronically share information like your Social Security number and income. The lender may also require access to your bank account. Lenders take measures to keep your information safe, but if you don’t feel comfortable sharing sensitive information online or you don’t have private internet access, applying for a loan at a physical bank or credit union may be right for you.
- Limited or no human interaction. You’ll only be able to contact an online lender via the phone or internet. Working with an online lender can be challenging if you don’t have reliable internet access or aren’t technologically savvy.
- May be difficult to distinguish reputable lenders from predatory ones. While many online lenders are just as safe as brick-and-mortar banks, some predatory lenders lurk online. If you aren’t familiar with the red flags of personal loan scams or you don’t feel well-suited to gauge the reputation of a lender, applying online may not be for you.
How to distinguish between reputable lenders and scams
Loans from online lenders can be just as safe as loans originated from large banks, provided that the online lender is reputable.
A reputable lender checks your credit, discloses the loan’s costs and verifies your ability to repay before approving your application. The lender should also have a license to do business in your state.
The National Association of Attorneys General maintains a list of each state’s attorney general, and the Consumer Financial Protection Bureau (CFPB) has a list of state bank regulators. Contact officials in your state to verify if the lender you’re considering has a valid license where you live.
When to consider applying for a loan online
Applying for a loan online may be fitting for you if you want a quick, streamlined process completed from the comfort of your home. It can also make sense if you want to pre-qualify with multiple lenders to compare loan offers or if you plan to fill out the application outside of typical business hours.
Pros and cons of in-person loans
Pros
Existing customers may find it easier to qualify or get special perks.
Personalized assistance applying for and managing the loan.
Greater peace of mind in sharing personal information.
Cons
More difficult to shop around for the best offer
Limited selection of lenders.
A potentially slower process to get a loan.
Advantages of applying for a loan in person
- Existing customers may find it easier to qualify or get special perks. You may have the opportunity to qualify with a lower credit score if you have a good preexisting relationship at your financial institution. Some banks offer rate discounts, higher loan amounts, longer repayment terms or faster funding to qualified bank customers.
- Personalized assistance applying for and managing the loan. If this is your first loan application, you may be more comfortable working directly with a loan officer to understand different terms and conditions. Applying in-person also gives you the ability to ask questions in real time rather than searching through website pages or emailing customer service representatives.
- Greater peace of mind in sharing personal information. If you don’t feel comfortable sharing personal information such as your Social Security number, income and bank account information online, applying for a loan in person may be your best option.
» MORE: Best bank loans
Disadvantages of applying for a loan in person
- More difficult to shop around for the best offer. Visiting several financial institutions to compare offers can be time-consuming. That means you might choose to accept an offer from the first bank or credit union you visit rather than compare offers among multiple lenders. Also, you may not have the option to pre-qualify first when you choose an in-person experience.
- Limited selection of lenders. When you apply in person, you’re limited to the banks and credit unions that have physical branches near you. Depending on where you live, your selection could be low. Some banks — and basically all credit unions — require you to have an existing account with them before you can apply for a personal loan.
- A potentially slower process to get a loan. Applying in person means you are restricted by the financial institution’s hours of operation. You also have to factor in additional time to get to the bank or credit union and, potentially, to wait for an appointment time.
When to consider applying for a loan in person
Applying for a personal loan at a physical bank or credit union location may be the right option if you don’t feel comfortable completing an online application or if you prefer to have a loan officer guide you through the process. It may also be fitting if you have a good relationship with your local bank or credit union and it requires an in-person visit to close the loan.
» MORE: How to apply for a bank loan
The bottom line: Where can you get the best loan?
Regardless of whether it’s from an online lender or a bank branch, the best loan is the one with costs, terms and features that match your needs. Comparing offers from multiple lenders can help ensure you’re getting the best value for your situation.
Frequently Asked Questions
Is it safe to apply for a loan online?
Applying for an online loan is safe, so long as you are working with a trustworthy lender. It’s important to check that the lender is licensed in your state and has a credible online reputation.
Is it faster to get a loan online or in person?
Getting a personal loan online can be faster than getting one in person. If you have to schedule a meeting with a loan officer during bank hours, it could slow the process.
What credit score do I need for an online loan?
The typical minimum credit score to qualify for an online personal loan ranges from the mid-500s to the mid-600s, but it can vary among lenders. Banks may require applicants to have higher credit scores. Having good or excellent credit (a score in the mid-600s or higher) increases your chances of qualifying for a lower interest rate.
Article sources
NerdWallet writers are subject matter authorities who use primary,
trustworthy sources to inform their work, including peer-reviewed
studies, government websites, academic research and interviews with
industry experts. All content is fact-checked for accuracy, timeliness
and relevance. You can learn more about NerdWallet's high
standards for journalism by reading our
editorial guidelines.
