Account Connection is a tool for viewing the customer’s bank account by financial institutions. The practice lacks the traditional credit analysis, when the client gathers a series of documents, such as payslips and bank statements, for shipping.
The tool is used at the time the company evaluates the loan grant. Thus, it is possible to identify if the client is in the budget or has debts – with the authorization of Account Connection, the financial institution can view all the information linked to the account, including savings account and credit card data.
Some situations are evaluated by the institutions and decrease the chance of the customer getting the credit. They are: have several loans, have the current account negative, be using the overdraft and have recently used bottom checks.
Today, Account Connection is a common practice among leading lending companies, such as Just, an online lending platform. The tool also ensures that the procedure for granting credit is 100% online – matching the format of the new loan companies, which operate in the virtual environment. So, do not be scared to come across an Account Connection request: the transaction is not only secure but also promises consumer benefits.
What are the advantages of Account Connection?
The main advantage of Account Connection is the speed in loan approval. The client knows at the time if he got the money or not. Before, he would go through a credit analysis, where he would need to appear in person to present the documents or send them by e-mail or Post Office.
With Account Connection, the consumer also gets a custom interest rate. This is because the financial institution monitors the client’s situation and identifies their ability to pay. Customers with a lower financial risk profile have lower interest rates.
How it works?
When applying for an online loan, the consumer registers their personal data and then needs to authorize the Account Connection. To do this, he selects his bank, enters the agency number and account and provides the internet banking password – which allows only the visualization of his bank statement. This password does not allow account movements, such as withdrawals.
Before applying for a loan, the consumer must still put his monthly expenses at the tip of the pencil and not accept any agreement: it is necessary to evaluate, for example, if the interest rates charged are worth it and if the loan installments fit in the pocket.
Although simple, the method can combat defaults in Brazil, which reached the mark of 63.1 million Brazilians denied in November 2018. The personal loan in banks or financial institutions is the third largest bad debtor, behind only the credit and of the credit card.