As the word says, online credit is offered online. To do this, both the lender and the loan seeker must be online, or at least have an internet connection. This is the case with online credit providers without exception; but not for those who want to apply for a loan. Only those who have direct online access can apply for an online loan.
This means own Internet access; either as a landline connection, or mobile via a notebook, netbook, tablet or a cell phone such as a smartphone. The online bank requires an e-mail address for information and data exchange. The loan seeker himself must also be able to print out received files such as a loan agreement, postident form and other documents.
In this case, reading and editing alone is not sufficient. In summary, it should be noted that the online loan can only be applied for by a selected group of people. If you are not online, you have to make use of the local savings bank or local bank loan offer.
German and foreign online banks on the Internet
The credit institutions as universal banks are divided into the branch and savings banks, the direct banks and the online banks. The direct and online banks operate from a single location, i.e. without a nationwide or regional branch network. Online banks only communicate online.
Only original documents such as credit contracts, account statements or Postident confirmation will be exchanged in printed form by post. Otherwise emails are written and files are sent. Direct banks work similarly. The focus here is on direct contact between the bank and the customer, rather than online communication. The way foreign online banks work is comparable to that in Germany.
Online credit quickly and cheaply
Another plus for online credit is the cheap effective interest rate. This can also be offered because online banks have a literally lean business structure compared to branch companies with main branches and branches. The personnel and administrative costs are very low. These saved expenses, which in the end have the same effect as additional income, are not retained as profits, but are passed on to online customers through favorable credit terms.
That is what makes online credit so interesting and in demand. Online also means fast. Many operations are automated and schematic. Short decision-making processes and flat hierarchies at the online banks accelerate loan processing. These advantages are particularly beneficial for loan seekers as online customers.
Compare online loans with online calculators
Today, the number of online banks is large, and the range of online loans is correspondingly diverse. The branch companies also offer the possibility to apply for a loan online. However, this is not an online loan in the sense that the organizational structure of the credit institution does not correspond to that of an online bank.
Therefore, when comparing credit using the comparison calculator, the online loan on the one hand and the online offer of branch banks and savings banks on the other should be separated. Such a comparison is offered free of charge on the Internet and makes it easier for loan seekers to decide which online loan is the cheapest for them.
An online loan should therefore only be requested from the online bank. Here the customer can choose between an online loan with Credit Bureau and without Credit Bureau. This is not the case for branch companies and direct banks; they are a Credit Bureau business partner and only grant loans online with Credit Bureau.