Progress is a nigh unstoppable force as we move further and further into the twenty-first century. While some might argue that this isn’t so much of a good thing, I’m not so sure that we can make that judgement either way. When it comes down to it, rolling along with the changes is generally a better strategy than trying to fight against it.
Maybe you’re thinking to yourself, “that’s kind of a strange way to start an article about loans.” You’re not wrong, of course – at face value, it is a little weird. However, if we consider how much finance and banking has changed in the last few decades, it starts to make a bit more sense.
Have you been keeping up with all the advances that’ve been made? It’s hard to do that, honestly, so don’t worry if you haven’t. I’ll be doing my best to explain some of them today, although you might want to check out additional sources like this one to do some additional research as well!
Has a Lot Changed?
On a surface level, it probably doesn’t look like a whole lot has changed at your local bank branch. Even looking online at the different lenders that are out there, it may seem like there’s not much going on behind the scenes in terms of “progress.” However, this couldn’t be further from the truth.
Even just a few years ago, the idea of opening a bank account or applying for a loan entirely online was foreign to us. Now, though, it’s hard to imagine life without these conveniences! The loan thing might seem a bit intimidating at first considering how much is involved in the application process, but there are tools to assist with that as well thankfully.
What are some of the concerns that you have when you’re looking to create a credit agreement with a lender? One of them is probably the interest rate that you’ll end up with – no matter how large or small your loan is, it’s always going to be a concern. It’s even more true when you’re on a tight budget – changes could pose a huge problem to that.
Some contracts include interest rates that are fluid, which can work both for us and against us. You’ll have to weigh the pros and cons of that sort of thing yourself to determine if you’re willing to take the risk. If you were wondering, though, there are ways to calculate both your approval odds for a specific loan and what your projected interest rate and monthly payments will be. You can see one example of that here, http://www.forbrukslånkalkulator.no/, if you think you could get some use out of it!
Have there been other developments? Plenty, in fact – in a similar vein to what I mentioned above, we’ve started to finally see banks implementing software known as APIs into their websites and day-to-day operations. It’s an acronym for “application programming interface” if you’re interested, but that’s not overly important.
What does matter in relation to them is that fact that it’s made automatic banking much easier for everyone involved. Since the actual programming behind things like ATMs is improving, we can deposit funds and go about our day a lot faster. In addition to that, the platforms in which we pay our bills on loans or credit cards are also easier to access.
Now, in terms of the technology that financial institutions don’t seem to be jumping on, there’s one that sticks out to me: artificial intelligence programs (AI) aren’t a big draw for this sector. Very few from this part of the economy are investing in the field of AI, and it’s not entirely clear why. However, I’m thankful for it, since I think there’s something to be said about knowing we can rely on human help if something goes wrong during an expenditure or loan payment/application.
Why Does this Matter?
Now, I know that this might not seem all that important. The thing is, there’s a pretty good chance that you’re going to be working with some sort of financial institution in the coming months, years, and even decades. Having an idea of what you’re in for definitely doesn’t hurt, and it can help you prepare for any applications that you’re considering in terms of loans.
That’s where things like those calculators that I mentioned above can really come in handy. Of course, they have other uses too, such as helping you to prepare a budget if you are approved by your lender. Really, the progress that we’ve seen in making banking and lending more convenient for the consumer is impressive, and I’m quite happy to see that the trend isn’t dying off any time soon.
We all know how much of a pain it is to deal with applying for a loan. When you can come armed with info like what your budget is going to be based on the exact length and amount that you’re looking for, it can be pretty impressive to most lenders. Even if your credit score isn’t the best, they may be more willing to work with you and give you a slightly lower interest rate.
Still, though, it’s a good idea to keep in mind that these are just ways to predict what you’ll be paying. Thinks are always subject to change with loans – those are words to live by, trust me. Always double check on your contract to make sure that you’ve got a clear picture of the terms and conditions of your credit agreement before you sign it.
With all this “new-fangled” technology about, it can make some folks leery of loans. Are they still worth it if you have to jump through new hoops? Well, I’ve got some good news there – the changes that have been made to the process actually make things a lot easier on the consumer. Additionally, considering how easy it is to make repayments online…well, it’s hard to deny that they’re still worth it!