Extra credit: the clever online loan

The bank later became part of the Lortis Group, which in turn was swallowed by Best Bank on May 1, 2009.  In addition to extra credit as an online sales channel, Capital Cream Bank also has four locations. The bank is based in Essen. There are also branches in Berlin, Braunschweig and Stuttgart. The bank operates exclusively in the private customer business. In addition to accounts and investment products, it offers consumer loans and real estate loans. Extra credit is limited to conventional installment loans.


The website with credit request

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Since only a core product is offered, the website can be simple and clear, but still contain all the essential information. This is exactly what the Fine Bank website fulfills. Customers enter their desired credit and click on “Calculate now”. You will then be taken to the supply page. Below the offer is the information according to the consumer directive, including information on the representative example. Customers can now select the desired term and click to proceed to an immediate check. Then you get to a clear page with the credit request, which you can fill out anonymously.

They state the date of birth, marital status, occupation, type of employment, tax class, income, maintenance obligations and other liabilities. With a click on “Next” you get to the result of the instant check. Here customers can find out whether the check was positive. If the answer is affirmative, the customer can either continue the procedure with the desired loan amount or follow one of the other loan proposals.


They can also decide how they want to apply for the loan

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Online, by phone or after a personal consultation that is free of charge. The anonymous loan request ends with the next step, and the current loan application is now made. The possibility of receiving a preliminary loan decision immediately after the request, without having to disclose your identity beforehand, is a very positive thing.

As far as can be seen, no other direct bank offers such a procedure. Customers will find a detailed catalog of questions and answers on a separate page. If you click on the question on the left, you will receive the answer on the right. This division makes the questionnaire very clear.


Loan offer and interest

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Extra credit offers installment loans between 1,000 dollars to 50,000 dollars. Maturities from 12 months to 84 months are possible. Currently (September 2018), the annual percentage rate is 7.99 percent with a fixed borrowing rate of 7,674 percent. These conditions only apply if the loan is applied for online. The interest rate is a standard interest rate, ie regardless of creditworthiness. This interest rate regulation applies if the loan is applied for directly via the Fine Bank website. However, an application for a loan comparison is also possible. Apparently, terms of up to 120 months are then possible.

In the Lender loan comparison, the interest is sometimes dependent on creditworthiness and is between 3.78 percent and 14.89 percent effective (10,000 dollars, 84 months term). The exclusive interest rate is stated at 3.95%. Compare the conditions of the on Lender with those of competing banks. The credit conditions at Check7 are sometimes different again. The margin here is 3.95 percent to 11.95 percent for effective interest rates. However, the representative example given is congruent with that on the Fine Bank website.


One can only guess why these different interest rates are given

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Maybe advertising reasons are decisive, maybe different agreements have been made with the operators of the credit portals. It is also possible that the credit calculator also includes offers from Capital Cream Bank itself that are not processed online. In addition to loans for employees, loans for civil servants are also possible. Here, the net loan amounts are generally up to USD 120,000 with terms of up to 120 months.

The various details of the loan terms are somewhat confusing, but not entirely unusual. Prospective customers should perhaps first take advantage of the offer of an anonymous preliminary immediate approval on the Fine Bank website and then make an inquiry about a loan comparison.

Evaluation of the interest rate offer

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Regardless of which website the application is made from, the interest rates offered are in the last third of the online offers. They are relatively high compared to the competition. However, these are abstract interest offers that can look completely different in individual cases. Apparently, unit interest rates are essentially offered. Standard interest rates are based on a credit rating.

Anyone who exceeds this credit limit will not receive a loan at all. Anyone who has a better credit rating than the marginal credit rating receives a loan, but in relation to his credit rating at a relatively poor interest rate. If credit banks offer fixed unit interest rates regardless of creditworthiness, borrowers should never limit themselves to this single provider. In these cases, loan comparisons with obtaining a few specific loan offers are particularly important.


Other loan terms

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Extra credit enables special payments, early loan repayments and also credit increases. In all cases, customers must contact customer service beforehand.

If the loan is partially repaid (special repayments), a new payment plan must be agreed.

The question and answers on the website do not determine whether special repayments and loan repayments are free of charge or whether prepayment penalties are due. Borrowers should check with customer service before entering into the contract.

A credit increase requires a new loan offer from the bank. It can be assumed that the bank will conduct another credit check in the event of a credit increase.


Requirements and documents

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Applicants must be resident in Germany and have a German bank account. Only persons who are employed or civil servants for an unlimited period are taken into account. The employment relationship must have existed for at least 6 months. Retired people are also eligible to apply. Two salary slips or the current salary statement must be attached to the application. In individual cases, it may be necessary to send account statements, for example for loans from USD 12,000. The attachable part of the monthly salary payments or monthly pension must be assigned as security. No other collateral is required on a regular basis.

The creditworthiness is checked using current Credit Record information. Negative entries do not appear to preclude lending in every case. If there are negative Credit Record entries, loan applicants should perhaps first contact customer service before making the current loan application. The bank is committed to its loan offer for 14 days, provided that the applicant’s personal or economic situation does not change.


Experience and assessment of the loan offer

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There are only a few testimonials and reviews on extra credit. Capital Cream Bank’s online platform is certainly not one of the largest and best-known Internet banks. 40 customers shared their experiences. The overall rating is 4.1 / 5. The recommendation rate calculated by the portal is 80 percent. The uncomplicated and quick processing of loan applications and personal support are emphasized.The most meaningful are the ratings submitted on the comparison portal TarifCheck7.

Apparently, applicants whose creditworthiness is not so good also have a chance at Capital Cream Bank. Customers can get a loan even though their loan request was previously rejected by other banks. The bank is not limited to automatic credit checks. Every customer is looked after individually. Capital Cream Bank claims to advise customers even in difficult cases and to work with them to find a loan solution. This is obviously the reason for the wide interest rate corridor that the bank offers as a partner in credit comparisons like Lender. Loans in spite of negative Credit Record are only granted at high interest rates.


This approach distinguishes extra credit from other direct banks

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With a manual credit decision, the processing time can of course take longer and the loan payment can also be delayed somewhat. Nevertheless, personal customer care is of course a positive thing. The same applies to the possibility of long terms with high loan amounts. Uncomplicated loan applications are quickly approved and the loan is paid out quickly. The bank does not offer a modern video identification process. All customers continue to rely on the somewhat complicated PostIdent procedure.

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