Applying for a Loan Online vs. In Person: How To Choose
Both online and in-person personal loan applications are safe and effective ways to borrow money. Online applications are generally faster and more convenient, while in-person applications offer more one-on-one guidance.
The better option depends on how quickly you need funding and how much personal support you want throughout the application process.
MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.
Key Takeaways
Applying for a loan online vs. in person comes down to speed, convenience and support. Online wins on speed and ease, while in-person offers face-to-face guidance.
Online applications are usually the faster route to funding. Many lenders offer prequalification, digital uploads and funding within one to three business days.
In-person applications shine for complex situations and existing relationships. A loan officer can walk you through the process and may approve you faster if you already bank there.
Prequalifying with a soft credit check lets you compare offers risk-free. It estimates your eligibility without the hard inquiry that can ding your score.
Verifying a lender's license protects you from scams either way. Check NMLS Consumer Access, the Better Business Bureau (BBB) and recent news before you apply.
Summary generated by AI, verified by MoneyLion editors
Key Differences Between Online and In-Person Loan Applications
When you're exploring how to get a loan, the difference between online and in-person application processes might sway you toward one or the other. Here's a side-by-side look at online and in-person loan applications.
Feature | Online | In Person |
|---|---|---|
Funding speed | 1 to 3 business days | 1 to 7 business days |
Prequalification | Submit personal and income information | Submit personal and income information |
Credit impact | • Soft inquiry to prequalify • Hard inquiry for application | • Prequalification may not be available • Hard inquiry for application |
Support type | Chat, phone support, email | Face-to-face for initial application, phone, email or chat for follow-ups |
Document submission | Upload to the lender’s platform or email | Bring documents to your scheduled appointment |
Signature type | E-sign via PIN, typed name or electronic signature | In-person signature |
Availability | Both online-only banks and brick-and-mortar institutions offer online loans | In-person loans not available at online-only lenders |
Best for | Fast funding and convenience | Personalized guidance and complex situations |
How To Apply for a Loan Online
Gather documents, including your driver’s license, Social Security number and pay stubs.
Fill out a prequalification form on the lender’s website. There will be a soft pull, with no credit impact.
Compare offers. Consider interest rates, APRs, prepayment penalties and terms.
Complete and submit the application. This step will come with a hard credit pull.
Wait for approval.
Review terms and accept the loan by e-signing documents.
Receive funds.
How To Apply for a Loan In Person
Gather documents, including your driver's license, Social Security number and proof of income.
Visit a branch location and meet with a loan officer.
Discuss your loan needs, including the amount and purpose.
Complete the application with the loan officer.
Submit your documents for review.
Wait for approval.
Sign the loan agreement in person and receive your funds.
What Documents Do You Need?
The documents you’ll need for both in-person and online loans are similar and include the following:
Proof of identification, including state-issued ID and Social Security number, physical address and contact information
Proof of income and assets
Employer information
How Long Does It Take To Apply?
Step | Online | In Person |
|---|---|---|
Complete application | 10 to 15 minutes | 15 to 60 minutes |
Submit documents | Upload electronically | Bring to appointment |
Approval | Often same day | Same day to several days |
Funding | 1 to 3 business days | 1 to 7 business days |
How You Submit Documents and Sign Paperwork
In Person
When you apply for a loan in person, the lender will ask you to bring in documents such as:
Your ID
Proof of income
Bank and/or investment statements
After the application is complete, you'll sign the application to complete the process.
Online
When you apply online for a loan, you upload your documents by taking a photo of them with your cell phone, or by linking to your financial institution or paycheck provider.
You'll sign documents digitally — no paper and no ink signatures required.
How Much Support Will You Get?
In-Person
An in-person loan application can provide you with better support because you'll be sitting in front of the loan officer. They'll walk you through the process, and you can ask questions or voice concerns, if you have any.
Online
Online applications often give you the option of speaking with a live representative. While helpful, it's not the same as working face-to-face with a loan officer, and you won't have an opportunity to build a relationship.
How Long Does It Take To Approve and Fund Your Loan?
In Person
In-person applications may qualify for same-day approval if the lender uses automated underwriting. Existing customers at a bank or credit union may also receive funding more quickly, though processing is generally limited to business hours.
Online
Online applications are often approved and funded more quickly because the process is largely automated. Many lenders begin reviewing your application immediately after submission, regardless of the time of day.
Pros and Cons of Applying Online
Knowing the pros and cons of applying online will help you decide if this is the right choice for you.
Pros | Cons |
|---|---|
Apply any time, from your phone or computer | Less personal support |
Usually allow for prequalification to check eligibility | Risk of scams if you don't use a reputable lender |
Approval and funding might be faster | May not be available for all types of personal loans or in all locations |
Easy to compare multiple lenders |
Pros and Cons of Applying In Person
Applying for a loan in person has its advantages, but there are also some drawbacks to consider.
Pros | Cons |
|---|---|
Real-time help if you have questions and concerns | Process might be slower |
Opportunity to build a relationship with the lender | Limited to local lenders and business hours |
Can help you get approved if you're having trouble qualifying for your loan | Might require more paperwork |
Possibility of easier approval and better rates with existing bank relationship |
Which Option Is Right for You?
The right choice for you depends on your needs and preferences.
Choose an Online Application If
You need the loan fast.
You're comfortable working online and submitting documents digitally.
You want to compare rates easily.
Choose an In-Person Application If
You want one-on-one help.
You're applying for a large or complex loan.
You have an existing relationship with a local or community lender.
How To Spot a Legitimate Lender
Visit NMLS Consumer Access and enter the lender’s name to see if it is authorized to conduct business in your state.
Check for reviews and information on the BBB website and TrustPilot.
Check “best online lender” lists on reputable consumer finance websites.
Do an online search for recent news about the lender.
Bottom Line
Apply online if speed and convenience matter most.
Apply in person if you want one-on-one guidance.
Compare multiple lenders before submitting a full application.
Prequalify whenever possible to compare offers without affecting your credit score.
FAQs
Is it safe to apply for a loan online?
Online loans are safe as long as you choose a trusted, licensed lender. The Federal Trade Commission recommends searching the lender's name along with terms like "review," "complaint" or "scam." You can also search for a lender on the BBB website.
Does prequalification affect my credit score?
No, a prequalification is based on a soft credit inquiry, which does not affect your credit score.
Are online loans available in every state?
Not always. Many online lenders operate in most states, but licensing regulations mean some loans aren't available everywhere.
Is it better to get a loan online or from a bank?
If you appreciate working face-to-face with a loan officer and can wait a few days to get the loan money, consider applying in person. An online loan is better if you need quick funding and are comfortable working online.
Do I need the same documents for online and in-person loan applications?
You'll need similar information and documents either way: Government-issued photo ID, Social Security number, your employer's information and any proof of income and assets the lender specifies, for example.
What's the fastest way to get a personal loan?
In many cases, online loans tend to get approved faster.
Key Terms
Prequalification: An initial review that estimates your loan eligibility using a soft credit inquiry, so you can preview offers without affecting your score.
Hard inquiry: A credit check triggered by a formal loan application that may slightly and temporarily lower your credit score.
Soft inquiry: A credit review, such as prequalification or self-checks, that doesn't affect your credit score.
APR: The yearly cost of borrowing, including interest and certain fees, shown as a percentage so you can compare loan offers.
Secured loan: A loan backed by collateral such as a car, savings account or property, which can lower the lender's risk.
NMLS Consumer Access: A free public registry where you can confirm whether a lender is licensed to do business in your state.
Summary generated by AI, verified by MoneyLion editors
Sources
Consumer Financial Protection Bureau. 2024. "What can I do if my credit application was denied because of my credit report?"
Federal Trade Commission. "Understanding Your Credit."
Daria Uhlig contributed to the reporting for this article.
Photo Credit: katleho Seisa / Getty Images
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