The more extensive the questionnaire to be filled out in the loan application, the more precisely the lender can calculate the individual credit risk. Consequently, financial institutions ask most questions when calculating the interest rate individually for each customer depending on their personal credit rating.
A fixed interest rate for all borrowers, on the other hand, enables financial institutions to issue the loan without many questions. However, banks must not forego a demand for income, even if they do not have to request proof of income.
Traditional lending with few questions
Traditionally, mail order companies give the desired loan in the form of an installment payment without asking many questions. In the case of ordinary order sums, there is usually no demand for the amount of income; for existing customers, obtaining additional Credit Bureau information is also unusual for a subsequent order. The pawnbroker also grants his loan without having to ask many questions, because the pledged deposit serves as security.
In principle, the disposition framework of a checking account can also be interpreted as a loan grant without further questions, since most financial institutions base their disposition credits on the incoming payments of the account concerned. Even when granting the availability of a newly applied credit card, many issuers forego many questions, provided the new customer is initially satisfied with a small lump sum. A large consumer bank is advertising that it will grant a disposition limit of $ 3,000 that is independent of the checking account without further questions and evidence.
The Internet prevents inquiries
Offers for quick loan processing mean that financial institutions only have a few questions for loan applications and often refrain from sending receipts for low sums. In this case, the loan facilitates the processing of a loan application without many questions, especially since it is not possible to carefully check the details of an instant loan, which the financial institution promises to pay out within two bank working days after receipt of the loan application.
Often, it is particularly useful for borrowers to forego the exact demand for the composition of the income or to inquire about the status of the employment contract, since more and more employees receive their income from a main job and a part-time job or have a fixed-term employment contract.
The fewer questions the lender asks, the more carefully the applicant has to check whether he can pay the agreed loan installments over the entire term or whether it is better to choose a longer term.