By definition, IBV loans are fast money loans with no credit check. They allow you to borrow without going through the difficult credit investigation that lenders do to assess your creditworthiness when you apply for a traditional loan. This type of loan relies on Instant Bank Verificiation technology that focuses on recent data rather than a long history like your credit report.
What is an IBV loan with no credit check?
These products can take the form of personal loans, micro (or mini) loans, and other loans, and can be useful if poor or insufficient credit prevents you from obtaining a traditional bank loan. But they come with risks, so it’s helpful to understand how these loans work before you jump into getting a loan without a credit check.
Your credit file
Before we go any further; let’s summarize what a credit check is. It is a check made by a lender to verify your financial history with the various credit bureaus. In Canada, both Equifax and Transunion collect your financial data to build a credit score. Depending on the bureau, the way they calculate it will vary a bit, but the most important criteria are your repayment history and the percentage of credit you use compared to your available credit. The result is a numerical score, between 300 and 900, which then ranks in groups from poor (300) to excellent (760+). This is a small visual cue, but keep in mind that your score may vary from one institution to another.
Therefore, if your score is not excellent, you run a high risk of being refused a loan or having very unfavourable terms. Moreover, the simple fact of making a credit inquiry can make you lose 10 to 40 points on your score; it is thus recommended to limit the number of inquiries on your file!
How do IBV microloans work?
With a no credit check loan, the lender will consider a wider range of data to assess your creditworthiness; non-credit related information such as income, employment and the status of your bank accounts.
Unlike traditional loans that you can pay back over several years, no credit check loans are generally short term loans, but flexible, they can range from 10 to 29 weeks for most honest lenders.
You will still need to meet certain criteria for a no-credit check loan, but the rules will often be less strict. You must generally be at least 18 years old and have a job or other verifiable source of income. The key element is your bank account; you must have a valid checking or savings account, depending on the lender.
What is an IBV survey?
First of all, what does IBV mean? The answer is “Instant Bank Verification.” It is common practice for lenders to verify the information provided in the customer’s application by requesting bank statements to decide whether to approve or deny the applicant. However, in recent years, with the advent of technology in the business world, this practice has begun to change.
In the past, lenders would receive bank statements via fax, and more recently, via photos taken by the applicant and sent via text message or email. While this method worked for a few years, an increase in online fraud has made this option less attractive to consumers. In addition, it is less and less likely that you own or have easy access to a fax machine.
In order to provide more security for applicants and to simplify the process, instant bank verification services have begun to be used.
Specifically, IBV provides access (visual only) to your recent bank statements, the time period observed varies by lender, between 90 and 360 days. This allows lenders to corroborate your debt load by being able to see your recent cash inflows and outflows. Don’t worry, microlenders don’t scrutinize your bank account, they focus on regular amounts such as your rent, car loan and income (salary/benefits).
Why do I need an IBV?
For brand new applicants, bank verification helps lenders confirm that applicants are who they say they are, protecting customers from potential fraud. Then, if underwriting has not been able to approve an application, reviewing the statements allows us to examine more detailed information. This can result in a loan approval, where with more limited information, we would not have been able to approve the loan application.
In addition, the IBV system allows us to check for updates to a client’s bank account and/or payment cycle. Again, this is to verify the legitimacy of customer requests for the safety of all parties.
How does IBV work?
In most micro loan processes; the entire loan process is done entirely online. Lenders have somewhat similar forms that ask you for personal information such as contact information as well as some details about your sources of income.
The IBV is often the last step of the form, as it is not done on the microloan company’s website, but on a secure portal provided by the banks. The IBV appears as a list of local banking institutions from which you will select the bank where your current bank account is located. You will then only have to enter your account information (account number, password/access code) and select the appropriate account and you’re done! No need to take screenshots or anything else, the approval team will study your file and calculate your debt ratio in order to offer you the most appropriate loan for your budget.
The purpose of a microloan is always to tide you over when other options are not possible for you; an honest microlender will never offer you a microloan for a larger amount than your initial request!
If you are initially turned down when you apply for a loan online, you can try again in a few months, when your situation is more favorable for regular repayment!
L’IBV est une technologie sécurisée offerte par les institutions bancaires traditionnelles.
- L’IBV est un accès visuel restreint aux opérations bancaires des 90 à 360 derniers jours de votre compte bancaire courant.
- L’IBV sert à évaluer votre taux d’endettement et à démontrer vos revenus et dépenses habituelles.
- L’IBV n’a pas d’impact sur votre dossier de crédit!
Somme tout, la technologie IBV permet des micros prêts personnels en ligne, rapide et sécuritaire!