The internet as an achievement of modern society has become indispensable in the credit business too – be it to compare loan terms with one another or to apply for or take out a loan online. But how good are online loans, how do they compare? And what are credit brokers really good for?
The advantage of online credit
The advantage of online credit, which many consumers appreciate, is that the personal component, that is, to be presented to the respective bank, is omitted – this personal conversation simply represents a certain inhibition threshold for many.
The fact that the inhibition threshold for online credit increases lower seems to be a double-edged sword, because loans, even if it is only a small personal loan, should never be taken lightly or thoughtlessly.
Loans without Credit Bureau
They are now becoming increasingly common: loans that do not provide Credit Bureau information. The loans are aimed primarily at people who have to fear that they will not receive loan approval in Germany due to their entries in the Credit Bureau (broken cell phone contract, unpaid credit installments, open credit card bills, etc.).
However, it is required that the borrower has a permanent job as an employee or civil servant, i.e. has a fixed income. In addition, with the help of bank statements, employment contracts, and payslips, a household bill is drawn up, on the basis of which the bank can assess whether the borrower is even able to repay the resulting loan installments. If he cannot do this, he will not receive loan approval, regardless of the fact that no Credit Bureau information is obtained.
Online loans from branch banks
Not only credit brokers and foreign banks offer online loans, but now also established branch banks such as Good Finance, including instant loans. However, the following also applies to these instant loans: they are only intended for employees and civil servants; the self-employed are always asked to come to one of the branches so that the individual financing requirements can be discussed in person.
The question arises as to how much sense the online loans of the German branch banks actually make because documents and documents must then be sent by post to the lending bank, which in turn sends the loan agreement to the borrower in the event of a loan approval – ultimately, that is faster personal consultation, at which the required documents can be presented directly.