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Loans by Phone

Loans by Phone: How They Work, Types, and Benefits

Updated on February 14, 2023


Nobody enjoys dealing with unexpected costs, especially when money is tight, and you don't have a rainy day fund. And when we talk about emergencies, they might occur anytime and anywhere. Suppose you urgently need funds; applying for a loan by phone may get you money faster.

Requesting a loan over the phone is one of the fastest ways to acquire cash during urgent financial situations. Based on surveys of U.S. adults conducted in 2011-2021 by the Pew Research Center, 97% of Americans have a cellphone of some type, and around 85% of Americans are smartphone owners. So, applying over the phone makes loans accessible to more people.

If you'd like to learn and explore more about loans by phone, you'll find out how they work, the benefits of using this process to get funds, and more in this article.

What are Loans By Phone?

As the name suggests, you can apply for a personal loan over the phone from the convenience of your own home. You can also save time by not driving to your lender's store.

How Do I Use My Phone to Get A Loan?

Depending on the lender, you could follow a couple of different paths. However, these loans begin with you calling the lender. Here are some general steps to get a loan using your phone.

1. Call And Apply

First, you call the financial institution to talk with a representative. They will collect personal information, including your name, date of birth, address, social security number, income, and bank account details. The representative then fills out the loan application on your behalf using the information gathered.

2. Discuss And Agree On Loan Terms

Once your loan application is completed and submitted, the lender will decide whether to approve or decline your loan application. You will be informed about the lending decision. You can sign your loan agreement to accept the terms if approved.

3. Receive Your Funds

After signing the loan agreement, you get your money. Depending on the financial institution, you can choose a direct deposit or a check to receive your funds.

Can I Use My Smartphone to Get A Loan?

With the advancement of technology, getting a personal loan has become easier than ever. One convenient way to apply for a loan is through your smartphone. Whether you have an iPhone or an Android device, there are several ways to use your phone to get a loan.

One option is to download a mobile app from your preferred lender. Many financial institutions offer the ability to apply for loans directly through their mobile app, making the process quick and convenient.

To apply for a personal loan through a mobile app, sign up or log in to your current account. From there, you can select the type of loan you are interested in and begin the application process.

Why Should I Apply?

Suppose you need help getting to a physical location. In that case, you may find it more convenient to apply for a loan by calling or using a financial institution's website on your phone.

In addition, you can expect to get loan approval more quickly because no paperwork or waiting in line is required. Upon acceptance of your application, the lender will send you the terms and conditions, which you can accept. You can get the funds in your bank account on the same day or, at the latest, on the next business day.

What Do You Need to Apply for a Loan over the Phone?

What Do You Need to Apply for a Loan over the Phone?

Anyone who needs cash can apply for a personal loan over the phone. However, different lenders can have other loan eligibility criteria. Check the requirements before applying, and prepare your loan documents in advance to ensure quick approval.

Here are some of the general requirements that you may have to fulfill to apply for a loan by phone:

Your Phone

You should have a reliable mobile phone or mobile device to apply for a loan over the phone. Ensure your device is updated with the latest operating system to protect against potential threats or viruses before seeking loans.

Smartphones can access websites, and many cash advance lenders have apps that you can download for free. When downloading a lender's app, read the terms and conditions carefully. Providing personal information to private companies, even during a phone loan application, requires understanding how your data will be used and protected.

Some individuals may prefer to use something other than online applications or mobile technology, particularly when it involves sharing personal financial information. Most lenders offer toll-free numbers for those who prefer speaking with a live operator over a landline.

Valid Email Address

Your lender will send all necessary documents, such as the loan agreement and terms, to the provided address. A valid email address is needed to apply.

A valid email address is essential when applying for a personal loan over the phone. Your lender will send your important documents, such as the loan agreement and terms, to this email address.

Having a valid email ensures that you receive all necessary information promptly and allows you to access and reference these documents quickly whenever needed.

Government Issued ID

Acceptable forms of identification include a state-issued driver's license, state ID, or passport, each with a photo and legal name listed.

Applying for a personal loan over the phone has never been easier. Many lenders now offer the convenience of applying for a loan with a simple phone call. You only need a state-issued driver's license, ID, or passport.

Proof Of Income

When applying for a loan, you must show your pay stubs from the last two or three pay periods. If you are self-employed, you can submit your tax records (such as Form 1099) and a record of your bank deposits from the past two months.

When applying for a personal loan over the phone, having all the necessary documentation is essential to expedite the process. One key piece of information that lenders typically require is proof of income. This can be in the form of pay stubs from your employer for the last two or three pay periods.

Social Security Number

Some lenders may require a social security card or other government-issued documents with your social security number, like a W-2 tax form.

When applying for a personal loan over the phone, it's essential to have all the necessary documents ready to streamline the process. One key document that may be required is your social security card, which contains your unique social security number.

Suppose you need to get your social security card readily available. In that case, some lenders may accept other government-issued documents that display your social security number. For example, a W-2 form or a pay stub may be acceptable verification forms. However, checking with the lender beforehand ensures they will accept these alternative documents.

Active Checking Account

You should have a balanced checking account. It will be the account that the lender will draw from when the monthly payment is due.

When applying for a personal loan over the phone, ensuring that your checking account is in good standing is essential. It should not be overdrawn or have any outstanding fees or negative balances.

The status of your checking account is crucial when applying for a personal loan because this is the account that the lender will use to withdraw funds from when repayment is due.

Can People with Bad Credit Apply For Phone Loans?

When you apply for a loan, most lenders check your credit score to determine what type of borrower you are. Thus, your credit score could play a significant role in helping many lenders determine whether or not you get approved for a loan. It can also affect the interest rates and terms of your loan.

Luckily, some lenders provide bad credit loans over the phone for those with bad to no credit. These lenders consider factors other than your credit score to know your creditworthiness. They'll consider factors like your employment status, income, etc. You could still obtain personal loans over the phone if you have low credit and need money to handle an emergency.

Different Types of Loans

Different Types of Loan Products

Now that you know if you can get a loan by phone, you should learn about the different types of loans available for application over the phone. Here are a few borrowing options that could be useful if you have unexpected expenses:

Personal Loans

Simply put, a personal loan helps you take out a set sum of money and repay it over time. You can use these loans for any and every purpose. Generally, there are two types of personal loans: secured and unsecured. Notably, the most common type is the unsecured one.

An unsecured personal loan is simply one which is not secured by any asset. On the other hand, a secured loan is usually more affordable because it is backed by collateral.

Installment Loans

Installment loans are a type of personal loan that helps you borrow a lump sum and allows you to repay in regular, equal installments over time. You can use the funds to pay for various expenses, including necessary home and auto maintenance and unexpected medical costs. If all the loan requirements are fulfilled on time, you can receive your money the same business day. The term of your loan can be flexible depending on the type of installment loan you choose and a few other variables.

Line Of Credit

Lines of credit are one form of revolving credit. Much like credit cards, they allow you to borrow funds multiple times instead of once. When you apply for a line of credit loan, you get approved for a credit limit. You can withdraw money when needed as long as you have available credit and your account is in good standing. The best part is that you only pay interest on the amount you borrow, not your entire credit limit.

Payday Loans

Payday loans are often small, short-term loans that you must repay in full by the date of your next paycheck. These loans are easy to get, and you can use them for unforeseen costs like unplanned car repairs or urgent medical needs. Remember that payday loans are not a long-term financial solution. They are designed to fulfill any immediate and short-term cash requirements.

Title Loans

A title loan is a type of secured loan that allows you to use your vehicle's title, such as a car, truck, RV, or motorcycle, as collateral. When you borrow a title loan, you must temporarily surrender the copy of your vehicle title in return for a loan amount, making the lender the lienholder. The lien is released upon loan repayment, and you receive the vehicle title back. Doing this lets you keep driving your car while getting the required money.

Cash Advances

You can use a cash advance to meet your short-term financial needs, even with bad or no credit. You can apply for a cash advance loan using your source of income. They are perfect if you need fast money for unforeseen costs like auto repairs, medical expenses, or home maintenance.

Benefits Of Applying For Loans By Phone

Benefits Of Applying For Loans By Phone

Many loan options are available if you have a cell phone, whether it has internet access or not. Here are some of the benefits that you can expect when you choose to apply by phone:

Simple Application

When you choose loans over the phone, completing the online loan application takes a few minutes. Since you can apply from anywhere, it's a quick and convenient borrowing for people in emergencies. At most lenders, you begin your application process by calling or going online with your phone.

Fast And Easy Approval

You get connected to a loan representative with your call. They can take a few minutes to verify your personal information and approve your loan application. Most loan representatives are friendly and help you with your loan application to speed up the borrowing process.

Access to Funds for Emergencies

Once your application gets approved, you can receive your funds even without visiting a store location. If given the option, the lender deposits your borrowed amount straight into your bank, usually on the same day. That helps you to get the money quickly during any financial emergency.

No Prepayment Penalties

One of the key benefits of applying for a personal loan by phone is the lack of prepayment penalties. Many traditional lenders impose fees or penalties on borrowers who pay off their loans early to recoup lost interest payments. It can be frustrating for borrowers trying to save money on interest by paying off their loans ahead of schedule.


Financial emergencies can strike anytime, but now that you know you can use your cell phone to apply for a loan if you need one, there's no need to worry. Many lenders provide phone loans through responsive websites and apps. You must have access to a mobile phone that can connect to the internet to apply for a loan using your cell phone.

While traditional lenders base most of their lending decisions on credit scores, you can choose lenders who are not rigid about credit scores, even over the phone. You can select a suitable loan by phone based on your financial situation and enjoy the benefits of these loans.

FAQS for Loans By Phone

What Level of Security Is in Place for My Personal and Financial Information When Applying for a Loan?

Security measures for phone loans may differ depending on the lender's policies. Confirming that the lender uses encrypted communication, follows data protection standards, and does not share your information without your consent is essential. Understanding how your information is shared is crucial when choosing between indirect and direct lenders.

Are There Specific Requirements for Mobile Devices Used for Phone Loan Transactions?

Keeping your mobile device updated with the latest operating system version is recommended. This enhances security when using lending platforms by protecting against threats or viruses.

What Steps Should I Take in Case of Technical Issues during the Application Process?

Loan providers typically offer customer support through phone and email. For technical issues, please get in touch with the support team for assistance. Most platforms may provide FAQ sections or troubleshooting guides to address common problems.

What Distinguishes a Direct Lender from Other Lenders When Applying for a Phone Loan?

A direct lender is a financial institution that offers loans directly to borrowers. When working with non-direct lenders or brokers, your application may be shared with multiple third-party lenders to find a suitable match, potentially leading to more credit checks or a higher risk of sharing personal information. Phone loans from direct lenders may provide more simplified terms, faster response times, and possibly lower fees due to the absence of intermediaries.

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Harita Solanki

Harita Solanki is a passionate advocate for personal finance and believes in empowering individuals to take control of their financial lives.

Her expertise covers a wide range of personal finance topics, including budgeting, saving, credit, debt management, and retirement planning.

With over six years of dedicated experience in the finance industry, Harita has helped countless readers of CASH 1 Loans make informed decisions and achieve their financial goals.

As a dedicated writer, Harita has contributed to numerous financial publications, sharing her knowledge and insights to help readers navigate the complexities of personal finance.

Her writing style is approachable, concise, and tailored to the needs of everyday individuals looking to improve their financial well-being.