The advantages of online credit
- Thanks to the efficient and quick processing of credit inquiries without a consultation, banks can generally pass on their lower own costs to the borrower through more favorable terms.
- Since they also compete with other online loan providers and have to be compared, the credit institutions also endeavor to offer low interest rates and fees. The customer has therefore not already decided on a bank before a credit talk, but can first of all conveniently choose the bank that suits him best.
Beware of credit intermediaries
Especially in the area of ”Credit Bureau-free loans” there are business-minded credit intermediaries who like to take advantage of the shortage of money and want to cash in with excessively high interest rates or upfront fees without a binding loan commitment.
Online loan process
- compare offers
On the Internet, if you are looking for “online loan comparison” or similar phrases, you will find a selection of corresponding comparison portals. Here you can compare different providers directly without having to query them individually. If you are only looking for “instant credit”, on the other hand, you usually end up directly with the banks and credit providers themselves.
In addition to the loan amount (small loan from 500 USD to over 100,000 USD) and the term (usually 12 to 84 months), you can also select a few additional services that influence the monthly loan rate.
These are, for example, advantages such as possible payment breaks, deferred payments of up to 3 months or annual interest certificates.
Other free concessions and services such as the option for special payments, a guaranteed fixed interest rate that is independent of creditworthiness or a binding immediate commitment can round off the offers and ultimately also be a decision criterion.
- Inquiry, credit check and online instant confirmation
If an offer appeals to you and you start a specific loan request after specifying your desired loan amount, term and configuration, the provider would like to get to know you and, of course, your financial situation first.
In addition to the monthly income (such as salary, pensions, rental income, maintenance), regular expenses (such as rent payments, insurance, maintenance, other credit installments) are also of interest. The provider uses this to determine whether you would be able to repay the loan reliably. If you fill in all the information truthfully, you will usually receive an immediate statement as to whether your loan request can in principle be realized. The immediate commitments are usually also sent to you by email.
- Personal data
If the acceptance is generally positive, you will be asked in the next step to provide your personal data (name, address, marital status, date of birth, profession).
Some providers insist – especially if their creditworthiness is shaky – that they take out insurance that will pay the installments in the event of unemployment, accident or death. Although this increases the cost of the loan, you and your relatives are also on the safe side – and ultimately the loan is granted to you.
- to submit an application
Now print out the completed forms – preferably in duplicate and including the terms and conditions. Don’t forget to sign them. As a rule, you must also agree to Credit Bureau information.
- PostIdent procedure / online identification
The PostIdent process is often used because the lender has to make a legally secure identification of the contract partner. To do this, print out such a PostIdent coupon and have it filled out and signed by a postal employee in a post office. Please do not forget your valid personal document (passport, ID card).
If you already have a new ID card and its online ID function is activated, you can – if the bank uses this function – identify yourself with it without further verification.
- Sending the contract documents
By sending the printed and completed documents to the loan provider, you finally get the ball rolling. Even if it is called online credit, only the initiation is meant here as described above. An online loan cannot avoid paper and the real world. Not yet.
Credit approval and receipt of money
The loan amount will be transferred to you one to three working days (Mon – Fri) after receipt of the complete documents and the online confirmation. Depending on the processing time of the bank, you can have the money within 2 to 6 days.
We expressly advise you to spend the borrowed money as sensibly and sustainably as possible and not to waste it wastefully. You can certainly treat yourself to some of it – however, this should not change your lifestyle in the short term. You will be brought down to earth anyway by the reality – at the latest after the first installment.
By the way, according to the law, you have the option to withdraw from the loan contract within 14 days. This also applies, but not exclusively, to online loans. In any case, you must object to the concluded contract in writing (ideally by fax and additionally by email). You do not need to give reasons for this. Of course, the amount that may have already been transferred must be remitted by you within the specified period.
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