Take out loans easily and cheaply on the Internet
It has now become normal for many people: Instead of squeezing through crowded, narrow pedestrian zones at the weekend, they order clothes, books, trips and even cars on the Internet. It works the same way with installment loans: Instead of going to the branch, you can also find good offers on the Internet and easily compare them.
Online loans are more convenient and often cheaper than loans that you can take out in a branch. The cheapest loan offers are available on the Internet comparison portals, but all banks are not listed. If you want to get the right loan offer as quickly as possible, you should know how the portals work.
How do comparison portals work?
The first step to online credit is to get a rough idea of the market. To do this, you first enter the key data of the loan in the portal’s input mask, i.e. loan amount, term and purpose. You can find out what this data could look like using the Finanztip loan calculator. It shows you how much money you have to raise each month to pay off a certain loan amount. But you can also enter the money that you could regularly put into an installment. The calculator then shows you what kind of loan you can afford.
After entering the information, you will receive an initial overview of banks that offer loans for the information provided. As a rule, the portals will display the loan offers in such a way that the bank with the lowest minimum interest rate comes first. What is more interesting, however, is the so-called two-thirds interest rate, which is visually much less conspicuous. At least two-thirds of the borrowers get this interest, so it is much more realistic than the minimum interest.
The following table shows how much the interest costs rise for a loan over 48 months if instead of the favorable terms, the interest at the upper end of the interest range applies.
But all of this information does not tell you anything about your future loan. Because all the numbers you see are general. You will only see correct offers that are tailored to your situation and that a bank would give you after you have given all the information in the application process.
How do you get a specific loan proposal?
If you now want to know what your loan could actually look like, you have to go through the application process of the portals. We recommend you – despite the effort – to use two portals. First of all, Verivox, as this provider shows all of the connected banks that would give you a loan in full in the results. Then you go to another provider, for example Check24, Finanzcheck or Smava.
In the application process, you have to provide some information about yourself and your household.
These include, for example:
- Birthday and place of birth
- Place of residence, length of tenancy, amount of rent
- Details on the employment relationship and income
- Information on other financial obligations, such as maintenance payments
- Information on further loans
Only when everything has been entered does the actual credit request begin. The portals pass the data on to the banks and then show you the offers from the banks. This request is Schufan-neutral and has no influence on your score.
Verivox will immediately show you all possible options. With Check24 and Finanzcheck you have to scroll down after the first query and you can then click on other banks. With Smava you have to be content with the options selected by the portal.
Then you choose the right offer. You can download the contract to be sent to the bank directly from the portal, your details from the application process will be taken over.
To complete the process, you have to sign the financing proposal and send it to the bank along with proof of your salary. You have to prove your identity at the post office counter (Postident) or by video call (Videoident).
Once the bank has received the documents, it will send an inquiry to Schufa about your creditworthiness. The so-called credit request influences your score. In the case of consumers whose Schufa score is not that good, some banks charge even higher lending rates in retrospect. The bank can also abort the process at this point if, for example, you have provided incorrect information that affects the interest rate or lending. In practice, however, this rarely happens. It usually takes a few days for the money to end up in your account.
Banks and portals are interested in keeping the time between application and contract or payment as short as possible. Instead of proving their income, they get permission to check incoming payments and credit balances on their current account. The identity check is carried out using the videoident process and you can sign on your PC, tablet or mobile phone.