Do you know the phone numbers for your friends and family? Do you know their email addresses? Your social media profiles? These are just some of the things lenders ask to get a better idea of who they can lend money too. It’s called the application process and it means lenders can find out more about your financial history in order to make lending decisions that are right for you. However, there may be situations where loan applications don’t come quite so easily. Often, we see borrowers being asked to give permission for lenders to access their contacts, call history and other personal information from their smartphone in order to complete an application. This is one way that many lenders can verify your identity before extending a loan. Read on to learn more about why this new permissions feature exists and what it means for your unique loan application process with particular lenders.
What is Loan Application Verification?
Loan application verification is a new feature that lenders are starting to offer where you can give consent for them to contact your contacts, call history, and other personal information from your smartphone before approving a loan. The purpose of the feature is to verify your identity so that lenders can make decisions about who they will lend money too.
Why does Loan Application Verification Exist?
This new permissions feature allows lenders to verify your identity without having to call your phone. From a lender’s perspective, this can be a big time saver. It also alleviates the need for them to have to get your phone number in order to complete the application process.
It also helps protect you and your financial information from fraudulent requests from other individuals who may try and apply for loans using your information. So, if someone tries to make an application using your contact information, but they don’t have access to the permission asked for by their app (such as asking for permission to call or text you), then that application will be rejected.
To put it simply: By granting lenders permission to verify your identity via calling or texting you before completing an application, you can prevent anyone else from taking out a loan in your name.
Requesting Permission to Verify Identity
The current process for loan application verification is a straightforward one. With the new permissions feature, lenders are able to verify your identity before extending you a loan by asking for your permission to call and text your friends and family and access your contacts, call history and other personal information from your smartphone. This will allow lenders to quickly determine who you are without having to wait on lengthy verification processes that can take days or weeks.
For example, if you were applying for a payday loan online, the lender might ask you on their website if they could access your contacts and phone number in order to make sure it was really you applying. Once you provide them with these permissions, they can then use this information in order to make lending decisions without any further delay.
How Can Denying Loan Apps Permission Help?
We’re now in an era where loan apps have become more commonplace. Whether you’re applying for a personal loan, cash advance or a large business loan, these apps offer the benefit of streamlining the lending process. The application process is no exception. Permission requests are one way that lenders can verify your identity before extending a loan.
Yes, granting consent to lenders can ease your loan application process. However, there may be situations where you want to deny this request. For instance, if you’ve been denied credit in the past and have no intentions of giving information to any more lenders ever again, you might not want to grant permission for them to access your information from your smartphone in order to complete an application.
Becoming a lender means you need to verify your client’s identity as well.
When you become a lender, it means that you are responsible for verifying your client’s identity. This is done through the application process, which may include asking your client to provide personal information like a phone number or email address in order to complete the process. Most lenders will ask this permission on their website before they can even begin the application process and some lenders will ask it during the application as well. This feature is a simple way for lenders to make sure that their clients have not provided someone else’s personal information in order to apply.
The Bottom Line
Some lenders are now asking borrowers to grant permission for them to access contacts, call history and other personal information from their smartphone in order to complete an application. This is one way that many lenders can verify your identity before extending a loan.