With the advance of technology, consumers are turning more and more to the web to make their purchases or carry out administrative procedures. The service sector is no exception. Thus, it is for example today quite possible to apply for credit on the internet. What are the advantages of “everything online”, and are there any risks involved in doing it online? Our analysis.
How does a loan application go online?
Today, the vast majority of credit agencies or banks offer to make a request via an online form. In general, the procedures are always the same:
- Fill in a form: indicating at least contact information. Most questionnaires also ask for certain information related to the applicant’s budget, in order to have a first overview of the file when the request is received.
- Send documents for the study of the file: these documents supplement the basic information, and are mandatory for the analysis of the request. Most often, these are copies of the latest salary slips, copy of the identity card (or residence permit), and copy of an LAMal invoice (or policy) (basic health insurance).
- Signing of the contract: once the request is accepted, a proposal is made in the form of a contract. The latter can be signed either directly at the credit agency, or sent to the customer and then returned by post.
What are the advantages of carrying out all the procedures on the internet?
Essentially, this way of proceeding simplifies the procedures for the applicant, but also, to a certain extent, speeds up the procedures. Indeed:
- Simplicity: as the applicant does not have to go to the counter, he can take his time, study the offers, and above all make his request at home. When documents are requested, he can also scan them (or photograph them), and therefore does not have to make photocopies: these documents can indeed be sent by e-mail as attached files.
- Speed: the possibility of sending files by e-mail without having to go to the bank or the agency or to post documents allows a significant gain in speed. Today, most consumer loan agencies work mainly online (credit requests on the internet and correspondence by e-mail) and are used to this type of operation.
Are there any risks?
On the internet, the “zero” risk unfortunately does not exist. These risks are not necessarily linked specifically to credit, but more generally to the use of the Internet and / or e-mails. However, these risks need to be put into perspective: a regularly updated computer equipped with an antivirus is enough to guard against the majority of threats. On the side of the credit agency, it can be interesting:
- Check that the website on which the credit request is made has “SSL” encryption. Without going into details, this is a method of ensuring that data transmitted via an online form cannot be intercepted by a third party. To ensure that a website benefits from this security, it suffices to verify that the website address begins with “http s” (and not http). This is the case, for example, of credit-bancaire.ch, which offers, among other things, the possibility of applying for credit on the internet.
- To verify the real existence of the company (registration in the commercial register, address and real telephone number) to avoid scams which are fortunately rare.
- To control the conditions of use of the credit application form on the internet, in particular the guarantees provided concerning the protection of personal data.
Finally, there is a real risk of being blocked by the ZEK (see here for more information) by making too many requests. Indeed, it is tempting to make numerous requests to several agencies to compare offers and ensure the best rate. However, the requests being registered with the ZEK, too many steps in a limited time will ultimately be a disadvantage, even blocking.
As previously mentioned, almost all agencies or banks today offer the possibility of applying for credit by internet. Despite sometimes aggressive marketing arguments, most agencies work with the same banks and offer the same terms. The best then remains to apply to a trusted agency like Hugemine Credit who can take care of the request while clearly explaining the steps to follow.