Credit banks online: how do you recognize them?Uncategorized
On the Internet, you can find a wealth of loan offers that all look cheap at first glance, at least when you compare them with the loan offers of most branch banks. But in some cases, consumers are not wrong to ask: how serious is the loan provider?
Is it really a good online loan with excellent conditions, or is it more of a decoy offer? Whether the loan of a particular loan provider can be recommended always depends on the wishes of the respective borrower.
A direct bank’s loan offerings can be tailored and affordable
For certain customers, but not for others. Anyone who expects the necessary funds to be able to redeem a loan early will attach importance to the fact that the loan agreement enables the loan to be repaid free of charge.
On the other hand, those who are short on cash may prefer a loan with the possibility of interim rate suspensions.
Using credit comparisons, the market situation and the quality of the loan offer can be estimated quite easily.
In the following, we provide information on some criteria that, depending on the individual case, can help you select good and reputable loans.
The amount of the annual percentage rate is, of course, the decisive quality criterion for a loan. There are always two different credit details in the offers of the credit banks. If a single interest rate is offered, the bank lists the bound single borrowing rate and the effective interest rate.
In the case of interest rates dependent on creditworthiness, different interest margins (from … to) are shown for the debit interest and for the effective interest.
This information is used primarily for advertising purposes. They only give a very vague idea of what a loan offer will actually look like. Ultimately, the interest rate actually offered depends on how the bank assesses the customer’s creditworthiness.
In the case of unit interest rates, whether the lending is dependent on the credit rating. If the bank offers loans with interest rates dependent on creditworthiness, the credit rating influences both whether the loan is granted and the amount of the effective interest rate to be paid if the loan is granted.
The representative example gives a better impression of the interest rates actually assigned. 2/3 of the credit customers of a particular bank receive a loan at the interest rates specified there or at better interest rates.
Ultimately, however, a borrower only knows his individual interest rate as soon as he has a concrete offer in his hands.
But how should a credit customer recognize whether, given the market situation, the two-thirds interest rates or the interest rates from specific loan offers are appropriate and cheap? Of course, several loan offers and information from different credit banks can be compared.
However, this does not give an objective standard. This is offered by comparison with the current average interest rate, which is determined by the Bundesbank at regular intervals.
Currently, for example, according to the last interest rate determination in December 2016, the interest on consumer loans with private households is initially 6.09% with fixed interest rates of up to one year, 4.4% for fixed interest rates from one to five years, and 6.83 for fixed interest rates %.
Credit with a good acceptance rate
The acceptance rate is a good criterion for how serious and serious a certain loan offer is. A high acceptance rate means that the bank is not a cherry picker, but that its loan offering is available to a wide range of customers.
Unfortunately, it is not so easy to find out the acceptance rate. Some comparison portals offer information on this.
At Good Credit, you can query the acceptance rate if you carry out a detailed comparison. As far as can be seen, other large comparison portals do not currently offer this service. In our opinion, the acceptance rate should be well over 50%.
Another option is to infer the acceptance rate from the number and quality of the ratings. For example, the credit calculator from E-Money provides information on ratings.
If a bank has a large number of ratings and most of them are positive, one can assume a relatively high probability of being awarded. A bank receives many positive reviews only if it also issues a large number of loans. Rejected customers either do not rate credit banks at all or tend to rate them negative due to disappointment.