Online credit

In today's world, many things can be done over the internet, which can bring numerous benefits. So more and more people in austria are also choosing to apply for loans online. Online loans have become a popular solution when it comes to getting short-term cash into your account, which is then repaid like a normal loan from a branch bank – with the difference that the application is done online. We show you what to look for in online loans and what advantages and risks they offer.


Advantages of the online loan application

There are two key plus points that an online loan in austria offers – it can save both time and valuable money. First of all, you don't have to travel to a bank branch in the area, where you always have to keep an eye on opening hours. Online banks, on the other hand, are available 24 hours a day, seven days a week.

In addition, there is usually a financial advantage when it comes to loans: because online banks do not have to maintain an expensive branch network, customers often save a lot of money here as well. This affects fees both in terms of interest rate and other conditions.

Another plus is that the credit check, which is done before a loan is approved, is in most cases not quite as extensive as it would be at a branch bank. Although you also have to prove collateral and a good credit rating, the chances are often much better online.

Advantage speed: the treatment of the credit inquiry is accomplished in most cases already within few hours (sofortzusage), so that one receives faster a feedback than with a correct branch bank.

For this reason, anyone looking for an inexpensive loan should not only inquire about it at their local bank, but also research it on the internet – it can pay off for many reasons.

The most important advantages summarized again:

How to find the right provider

The selection of credit providers is now huge and offers something for every need. However, you should not just choose any credit institution, but first make a comprehensive comparison with a loan calculator. In principle, it is important to turn to a reputable provider – unfortunately, this is not the case everywhere.

With some banks, which advertise cheap loans without prior review, for example, there is quite often a catch – be it hidden extra costs or other requirements, which go to the expense of the borrower. Of course, you should keep your hands off this. Likewise, it is questionable whether a loan brokerage is profitable. If you do not have any problems with your creditworthiness – i.E. No schufa entry – then the mediation does not really make sense. Because a commission is often so expensive that a possible savings through a well-researched offer is no longer profitable. It is better to compare different offers online with a loan calculator to find a suitable online loan.

select providers

What must also be noted is that the purpose for the loan is not bound. Quite a few providers grant loans only for financing a car or a property, for example – but if you want to buy something else from the capital paid out to the account, you have a problem in such a case. It is therefore important to only take out a loan for which the intended use can be freely determined. Fortunately, this is the case with most online banks anyway.

Enticing interest rates: beware of overly tempting offers!

With numerous banks, you can see particularly favorable offers when it comes to a loan: bait interest rates are no longer a rarity nowadays and arouse the interest of many, often still skeptical people who are looking for a suitable online loan. However, it should not be forgotten that very favorable loans usually have a catch. Sometimes a very good credit rating is required in order to be able to take advantage of such an offer. This means that the more solvent you are, the more attractive the interest rates offered by the bank. So be careful here and do not be lured by the interest rate promises. Because: most of the time this is a lower limit and the actual interest rate can be much higher in the end.
For this reason, too, it makes sense to carry out a loan comparison, where you can directly compare the conditions and thus select the right bank.

How much can I afford?

Before deciding on an online loan, the most important point must be clarified: the question of how much you can afford. Therefore, make a realistic calculation in which you compare income and expenses. Important: do not gloss over anything. Because a loan can quickly become a financial trap if you can no longer meet the monthly repayment requirements of the bank.

Don't forget that not only do they incur larger line items, but even small expenses can quickly add up to a significant amount of money. The expenses for rent, car, insurance, internet and telephone, food and insurance are the most important fixed costs for most people. In addition, there may be expenses for hobbies or other things. Vacation trips and other unexpected purchases should still be considered as a "buffer" as well. The difference between income and expenses gives the maximum monthly amount that would be available for the loan installments. With a slightly longer term, these can then possibly be reduced a little further.

When calculating a realistic household budget, christmas and vacation bonuses should not be taken into account, and long-term purchases such as a new car (not just the cost of the existing one) or new furnishings should also be taken into account.

Term and loan amount – tips on the subject

A not unimportant aspect is the term of a loan. As a general rule, the longer the repayment period, the lower the monthly charge. If you need a larger sum, then you should choose a longer duration accordingly, so that the loan installments each month are not too high. Also keep in mind: a longer duration can drive up the interest costs, because with a longer period of time, of course, more interest must be paid to the bank.

So that the loan does not become an expensive undertaking, both the loan amount and the term should be selected as realistically and carefully as possible. Take out only as much money as is really needed – and set the duration so that the monthly installments are not too high, but the interest also does not cause unnecessary additional costs due to a longer period of time.

Tip: make sure that the online loan is repayable early. Then you can rather rely on a longer term and pay back the loan faster, if the opportunity to do so exists. Conversely, it is not possible to extend the loan or. Repay later.

Beware of possible loan costs: recognize pitfalls early on when applying for a loan

Before deciding on a particular loan offer and applying for it, it is not wrong to check what the loan costs will be. Because: inexpensive loans are not only created by an attractive debit interest rate, but also offer favorable conditions in terms of ancillary fees. Some banks require namely higher processing fees, which sometimes reach considerable heights. So, in order to determine whether the conditions are really favorable, one should always pay attention to the effective interest rate, as only this reflects the actual costs – i.E., the interest including credit costs.

In order to see the total costs in a loan comparison, it should be ensured that the effective interest rate is always displayed. So you only have to choose the cheapest offer after all. It also makes sense to check whether it is possible to make unscheduled repayments. For example, if one has surprisingly more capital available than usual, such as through an inheritance or a tax refund, this can be included in the repayment and thus reduce subsequent installments. This is a clear advantage in any case

Credit insurance is often worth considering

credit insurance

Before applying for a loan, you should always consider whether there are any potential risks and whether you are adequately covered against them. It can happen that health or professional difficulties arise unexpectedly. If you then do not have the financial means to be able to continue to repay the loan installments, things can get tight.
A credit insurance could help here, because with it one can protect oneself and the family against unforeseeable risks, as for example incapacity to work, unemployment or even a death. If the loan installments can no longer be paid, the insurance company steps in and takes over the monthly payments so that the loan can continue to be paid off.
For larger loan sums, such as for a house or another expensive purchase, additional insurance is recommended in any case. Here, too, a comparison of different providers should be made in advance.

In conclusion, online loans can offer many advantages and are definitely worth considering if you are in need of cash at short notice or need to make a major purchase. However, it is important to weigh the risks and make a solid calculation, so that the loan does not become a financial burden. Of course, this also includes a good loan comparison!

There are many situations in life, in which higher sums of money are needed. No matter whether it is the purchase of a car, a new facility or perhaps even more important things. An online loan is a quick and easy way to get additional needed funds.

Like life itself, the household budget curve shows a constant up and down. Many austrians take out a loan to make their dreams come true or to compensate for financial bottlenecks. Especially the low interest rates for years, make online loans so interesting.

To get information on the best interest rates for loans, many still trust their bank. The conditions there are usually not to be compared with a direct bank. The confidence to the own bank is based mostly on contact of many years. The house banks know however also and use this circumstance again and again, in order to compute higher interest markups. Incidental costs are also well hidden, only the credit comparison of the total credit costs allows conclusive statements here.Our loan comparison shows at a glance which offer on the market currently offers the cheapest installment loan.

What is an online loan?

As such, one refers to loans that banks otherwise under consumer credit, personal loan, installment loan or. Acquisition credit is offered. The difference is only that the processing, as the name suggests, is done online. Usually an online bank also offers such loans. These banks have the great advantage that they get along with clearly smaller personnel costs and establishment costs. This is reflected in the low cost of credit.

These online banks are in their quality in no way inferior to the well-known house banks. Only that the customer service is accomplished by telephone and over internet.

The application process is very transparent and unbureaucratic. One simply indicates its data and the desired credit. With appropriate creditworthiness one receives its credit offer already after few minutes by mail. This is printed out and signed and returned to the bank. Then follows only a short legitimation by means of passport at a post office branch. They receive their money within 2 working days.

The on-line banks write thereby data security in highest place and are just as strictly examined by the financial market supervision as all other banks also.

How does the online loan application?

The credit application with on-line banks functions very simply.

  1. Personal data and desired credit amount indicate
    at the desired bank, they can inform themselves in advance again about the exact loan rates and conditions. Then they give their personal data such as name, address, age, profession, income, expenses and of course the loan request. This information must be truthful in the interest of both parties. Subsequently, they receive their preliminary credit approval. This can take between a few minutes and a day depending on the bank.
  2. Credit application print out and send to the bank
    the credit application is sent to them by mail with the credit approval. This is now printed and filled out. Important documents such as salary statements or. Bank statements are enclosed in copy. Then the documents are sent by mail to the online bank.
  3. Legitimation in a post office branch
    it is best to hand in the documents yourself right away at a post office branch, because that is where the so-called legitimation is carried out, which is required by credit law. In the process, a postal official verifies their identity with a passport or ID card.
  4. Acceptance or rejection
    once all documents are received by the bank is a final check of their documents and gives the commitment. They receive their money after a few days on their account.

Saving hardly makes sense because of interest

Since 2008 we are in a pronounced low-interest phase. The EURIBOR, for example, is even consistently below 1% since 2013. As a borrower, you are happy about the comfortable loan rates, but as a saver less so. In a healthy economic system, the interest rates for money deposits are always lower than for loans.

But this creates a problem for savers. Inflation, i.E. The natural devaluation of money, eats up the average savings interest rates. Money you own becomes less and less valuable.

This difference becomes particularly striking if you consider the purchase of a car.