Credit application with Online Decision

Would you like to take out a loan with an online decision? With excellent private credit checker creditworthiness, good creditworthiness or despite poor creditworthiness? What loan amount do you have in mind? How secure is an online loan approval?

Online loans are assuming an ever increasing importance for the financing offers of the credit market for Germany. Very few know what will happen after submitting the loan application. Despite often similar wording, loan offers are individually very different. We provide an overview of the background of the online process.

Credit with online decision – single loan?

Credit with online decision - single loan?

The desire for a loan with an online decision sounds like a uniform loan offer for all citizens. On top of that, it is difficult to see in the formulations of credit advertising which target group is actually meant. Online credit with instant approval is offered for practically every class of private credit checker credit rating. However, only credit requests that can demonstrate sufficient creditworthiness for lending can be approved.

Differences become apparent when you take a closer look at the procedure after sending the online loan application. In most cases, a program checks the loan request and sends a non-binding instant commitment. The program cannot commit the loan in a binding manner, since the legally binding credit check is only possible after a legally binding loan application.

Applying for a legally binding loan with an online decision requires an ID check and a check of the authenticity of the loan documents. Videoident instead of Post-ID shortens the credit process by several days. A legally binding loan application can be made via Videoident within 30 minutes. Which automatically raises the question, what is an immediate check for and what is being checked?

Credit check – what does the instant approval include?

Credit check - what does the instant approval include?

Credit with instant check corresponds to the classic for regular lending via credit comparison calculator. At the time of application, the program cannot recognize whether the person named in the application is actually behind the loan request. This means that it is not possible to query creditworthiness at private credit checker. The law stipulates that every borrower must personally consent to their private credit checker query.

It is only after the ID check that the check program is allowed to inquire about private credit checker’s creditworthiness, usually as a private credit checker score. The preliminary credit check is only a check of the household account and the check that an internally expected minimum income for lending is proven. The minimum income must be set by each credit provider according to their own standards.

The final check cannot offer a final guarantee that the online decision will actually be granted later. Assuming that the borrower backs up his or her loan request with an excellent or good score, the preliminary decision applies in bulk. Only the applicants whose score is rated as unsatisfactory fall outside the scope. The majority of this target group is aimed directly at credit intermediaries with their desired credit.

Immediate approval from the credit broker – look into the crystal ball?

Immediate approval from the credit broker - look into the crystal ball?

As far as possible, credit intermediaries try to appear similar to a regular loan with their loan offer. The free credit check is one of the standard offers of reputable credit brokers in online business. The mediator’s experience is included in the pre-evaluation. For example, the intermediary may know credit providers who have lowered their minimum income requirements. – Or, despite a tight budget, grant credit.

Unfortunately, the intermediary’s preliminary credit check cannot do any more. No credit intermediary issues the requested loan with an online decision himself. He has no influence on whether the credit institution that is to pay out the loan agrees. For this reason, any euphoria about an intermediary’s preliminary loan approval has been wasted. On the contrary, exploiting the hope of credit for other business offers is one of the clearest criticisms of the business models of some intermediaries.

Credit without private credit checker – online decision?

Credit without private credit checker - online decision?

Finding a loan is particularly difficult when a negative private credit checker entry blocks the path to regular lending. From the perspective of a borrower, it would therefore be particularly interesting to receive a stable online decision as soon as possible. In advertising, loan offers without private credit checker with immediate approval automatically lead to credit intermediaries.

The so far known only foreign bank for loan offers without private credit checker – (magna loan bank from Liechtenstein) – does not offer an online preliminary check. Only the application forms and general credit information can be found on the website of the loan provider. In principle, the procedure also does not allow a secure credit check. The individual case is checked on the basis of documents and inquiries.

The situation is different with credit despite private credit checker (negative private credit checker entry completed) in connection with a mini loan. The credit process for mini loans is so fast that it corresponds to a real loan with an online decision despite poor credit. Online application, ID check, credit decision and loan payment would be possible “at least theoretically” within 24 hours.

Mini loan with online decision – offers

Mini loan with online decision - offers

Mini credit with online decision is often advertised as a lightning or express credit despite private credit checker or with low income. Possible credit providers are Cashper, xpresscredit or Cash Finance from Berlin. A quick credit process enables the score, which is individually tailored to the special application. Scoring for small short-term loans is based on the fact that very small loan amounts are less likely to lead to loan defaults than larger loans.

Subjectively, Cash Finance offers the most comprehensive offer for small loans with online decision and fast payment. New customers should choose between EUR 100 and EUR 500 credit. The provider sets the term for initial loans at 30 days. Cash Finance unlocks additional credit options for existing customers. For example, a loan with an online decision with payment within 30 minutes would be possible.


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