Important to the online loan
- Lower interest rates possible
Due to missing branches and a lower cost structure, lower interest rates are often possible. So you benefit from cost savings that the bank can carry out.
- Offer collateral
If possible, provide additional collateral: this can be a second borrower, but also fixed or capital-forming life insurance. Banks often reward this with better terms as default risk falls.
- Private credit-neutral comparison
In our comparison, a preselection takes place, the comparison is Private credit-neutral and thus possible several times. So you can play through different scenarios without the need for a Private credit query.
- 14-day right of withdrawal
Also with an on-line conclusion applies for you the 14-day legal right of withdrawal after conclusion of the contract – regardless of whether you have already received the loan amount or not.
Although the traditional loan from the local bank still exists, online credit is becoming increasingly popular: a classic personal loan that is applied for and managed over the Internet. But is your data safe? A credit comparison is recommended. And what advantages does the whole thing have? We explain it to you.
Cheap online loan thanks to standardized procedures
Every universal bank offers private customers corresponding offers of private loans, consumer finance and Co. The branches serve customers, loans are requested and classic banking is conducted. All this costs, accordingly, it is pitched on the terms of personal loans.
But what if virtually the bulk of this application would be automated? In any case, banks would then have the opportunity to pass on this cost saving to you as a customer. And that is exactly the principle of the direct banks. They communicate with you via the internet, telephone and other techniques. You can easily do banking at any time of the day or night, from wherever. Therefore, most online loans are also much cheaper than traditional branch loans.
But even the application itself is simplified, step by step you are guided through the different areas. Financedel compares the loan calculator using the information you plenty of attractive online loans from banks within the European Union. These pay partly by lightning transfer, so that one can speak of an instant loan.
Specification of the interest rate regulated by law
The interest rates shown must be specified according to the PAngV so that ⅔ all customers actually receive these conditions. This facilitates the comparison and minimizes the risk of “lock offers”.
Data security: SSL & Co.
Many people have doubts that and how exactly their personal information is protected at all. In the case of credit inquiries, of course, you give very precise and personal information on your economic circumstances, which must be protected absolutely.
To protect them from access by hackers, banks use the SSL protocol as a high security standard. Here, all data is transmitted encrypted only. The receiver can only access the data with appropriate software.
In addition, the identity of the server is uniquely secured and algorithms are played throughout, which check the whole thing. These calculation methods are to exclude that data are manipulated. You can recognize this protocol in the browser using the prefix “https: //” in front of the domain name of the respective bank.
But what if someone allows you a nasty joke with your data? In that case, the second step, namely the unambiguous determination of your person, takes effect. That you are actually yourself is ensured through the Postident procedure. The credit documents that the bank sends you by postal mail are included in this coupon. This allows you to assign all data to yourself. They must present this to the employee in the branch office and identify themselves by means of identity card or passport (with registration certificate). All this is connected at no cost to you.
Online loans are not earmarked
The typical online personal loan is a classic installment loan that can be completed with terms of up to 84 months. In some cases, terms of up to 120 months are even offered.
Unlike a car loan or real estate financing, this loan is not earmarked. So you can freely use the money at your own discretion and need not provide proof of it. As a result, the interest rate is variable (when applying) and primarily based on your credit rating. The worse this is, the higher the interest rate.
Sometimes you can still get an online loan even if the conditions for this would actually be missing. In that case, a second borrower may be provided to increase the household income. However, a prerequisite here is that this person actually lives in your household.
In addition, bank-standard securities can be assigned to the bank. Bank customary here means that capital-forming life insurance, but also occupational disability insurance or fixed assets can be assigned. This is always cheaper than the frequently advertised option, in addition to complete a so-called residual debt insurance. Because it costs, thereby increasing the APR and only under certain conditions.
Earmarking can lower interest rates
Due to the lack of earmarking, relatively large interest premiums arise in practice. Because with the on-line credit only the assignment of wage and salary claims is agreed, whereas approximately with the car loan the vehicle is deposited itself as security. It only counts the credit rating and thus essentially the disposable household income. So if you have an intention to use which is offered by the bank as a special purpose, it is recommended that you look for this particular type of loan.
Compare on the basis of the effective annual interest rate
In addition to the fact that collateral and guarantees can make lending possible in the first place, the comparison is mainly about the effective annual interest rate. Because only this can, in connection with the term, the individual offers really transparent compare. It consists of the nominal interest rate and the essential ancillary costs, such as processing fees. In fact, it does not include costs for a residual debt insurance, unless it is itself a prerequisite for the granting of the online loan.
Just use our calculator to compare the terms of several banks. You can easily choose between loan amounts of 1,000 to 70,000 EUR and use terms of twelve to 120 months. Clicking on the “Tariff details” will show you if, for example, special repayments are possible. That would be good, because with this you can replace the loan early and you do not have to pay prepayment penalties for early termination.
Amount of the prepayment penalty is limited
A prepayment penalty can always be demanded by the bank if you withdraw before expiration and replace the loan early. A maximum of one percent of the balance may be claimed, provided that the remaining term is more than twelve months. For shorter residual maturities, the limit is half a percent.
Step by step to the online loan
The right course of action is also important for the online application for your online loan. We will therefore explain the individual steps to you.
1. Determine credit requirements
First, you should determine exactly what the actual loan requirement is. In many cases, it makes sense to dissolve, for example, short- term fixed-term deposit or to wait for bonus payments and the like. Because the lower the loan amount, the less interest you pay and the faster you can replace it all.
2. Rethink earmarking
For special concerns, such as buying a car, we recommend looking at earmarked car loans. Even real estate owners can take advantage of a modernization loan, which is much cheaper than traditional installment loans. Here then only the property must be proven on the basis of tax declarations or land register excerpts. A mortgage is registered in this case but not.
3. Budget bill
In the next step, you should use a household bill to show how high your regular income and expenditure actually is. Note that many insurance policies are only debited once a year. Also flexible components of wages or salary, such as Christmas and holiday money, should be included separately. It is worthwhile, therefore, to use and break down at least the last six months via account statements.
Banks sometimes use lump sums, such as the cost of living. Then it’s just about the number of heads per household, in addition to possible maintenance obligations.
4. Credit comparison
The actual credit comparison runs then online about Financedel, even without personal information. They will be needed later to carry out the concrete preliminary test. The first comparison is done Private credit-neutral – but as soon as you want to request an individual offer, a Private credit query will be made.
Request of credit conditions no negative feature
This first Private credit query is completely neutral to the score, it is not a negative feature. It is therefore no problem to check the credit conditions regularly. They are noted with the feature “request credit terms” and have no effect on your creditworthiness. Only then, when a loan offer has been submitted and you have legitimized, the final check including correct Private credit query is made.
5. Make application
The comparison is followed by the selection of possible offers, personal details and, for example, the small household bill are now queried here. But you do not always get the best conditions, for example due to a low income or slight negative features in the Private credit. Because these are often not a decisive feature in practice.
It would therefore be advisable to specify a second borrower or provide a guarantee right from the beginning. In the first case, the household income increases and the risk of default decreases, in the second case, the bank has additional security. You should refrain from taking out a residual debt insurance unless it is a condition for the loan itself. Because this increases the effective annual interest rate significantly, depending on the term, the cost of borrowing increases noticeably. Own securities or just guarantors are just as accepted and much cheaper.
6. Application examination and payment
After the actual application, the legitimacy of Postident and the final examination and Private credit query, the payout follows within a few working days.
Achieve better Private credit score with good timing
Even hard negative features are not always in the Private credit: There are deadlines that usually make up three calendar years after full settlement of the claim. If you are not sure that your database has been updated in your favor, you should postpone the loan request. Once a year, you can request a complete overview of all stored data, completely free of charge and guaranteed by law. So you take no risk that the credit due to old (unjustified) characteristics does not materialize.
14 days right of withdrawal
Within 14 days, you can withdraw from the loan agreement in writing without stating any reasons, for example, if you have initially accepted a loan offer in the shop. This also applies if the goods have already been handed over to you and the money has flowed. You have to repay the terminated loan, but not necessarily within the two-week period.
questions and answers
When is an online loan worthwhile for me?
If you are looking for a loan that allows you to compare and submit offers at any time and from home, the online loan is right for you. Elaborate preparation for the credit meeting on the spot is necessary. In addition, only a few documents have to be submitted, since only salary claims are assigned to the bank. In practice, the last three bank statements and, where appropriate, salary certificates are required.
Since earmarking is eliminated, you can use the money for any purpose. When buying a car, however, the car loan makes more sense, because the vehicle certificate Part II security for the bank is given. As a result, significantly lower interest rates are possible that do not depend solely on your own credit rating.
I own a house or an apartment. Does that bring me something?
First and foremost, of course, you benefit because it’s something worth using and the bank will be much more inclined to approve higher loan amounts. However, this does not necessarily have a positive effect on the interest rate. For household income continues to be the most important indicator here.
Is personal advice completely excluded?
No, just the direct advice on site is missing. Many banks are easily accessible via hotlines or via e-mail and live chat. All questions are so easy and quick to clarify. In addition, Financedel offers a range of guides and comprehensive notes on almost every step during the application process. So you can calmly provide all the information you need and are on the safe side, that these are complete and correct.
What if I get a better deal in retrospect?
Again, you are on the safe side, because it applies the statutory right of withdrawal. So you can still withdraw within 14 days after conclusion of the contract, without giving any reason. Because this is a so-called distance selling business, this also applies to online loans.
How fast will the online loan actually be paid?
Depending on whether the bank requires additional collateral or a guarantor, processing takes time. If everything goes smoothly, if you have signed the offer and enclosed all the supporting documents, have legitimized yourself via Postident and have sent the documents back to the bank, the request will be finalized. Then it takes about two to five business days for the loan amount to be credited to your German account.
I am self-employed or freelancer. Does that make a difference?
More and more banks are also offering online loans for businesses and freelancers. In the tariff details there is the hint, if that is so and which conditions apply here.
Unlike employees who have a permanent job and a proven salary, you will need to submit further documentation. That would be the BWA of the last two years, current bank statements and income tax returns. If you are accountable, additional supporting documents must be submitted. However, this is different from bank to bank.