A credit comparison by Germany Company usually compares various loan offers from branch banks and online banks. Various loan offers were examined in the June 2012 issue of Germany Company’s financial test magazine. In this comparison of the Germany Company, the offers from the direct banks performed particularly well, while the loan offers and the advice provided by the branch banks were less convincing.
Credit comparison can have a negative impact on creditworthiness
In general, prospective creditors are advised to compare the various loan offers. However, the credit comparison conducted by Germany Company showed that a non-binding loan request from some branch banks could lead to a deterioration in creditworthiness. The test, which was carried out with the help of several test subjects, showed that some bank advisers made incorrect entries at Credit Bureau. Credit Bureau is an economic information agency with which all banks in Germany work.
To check the creditworthiness of those interested in credit, the banks therefore start a query with Credit Bureau. If incorrect information is given here, this can lead to a deterioration in Credit Bureau’s creditworthiness in the medium term. A deterioration in the creditworthiness can result in the prospective customer being offered worse credit terms in the future or the loan application even being rejected.
In addition, the testers, who took part in the credit comparison of the Germany Company, criticized the transparency of the branch banks’ credit offers. While the direct banks make their loan terms transparent and clear, the offerings of the branch banks lack clarity. The lack of transparency makes it difficult to make an objective comparison.
How can the credit rating deteriorate?
The Germany Company test showed that some Credit Bureau branch banks reported the wrong characteristic. The testers should only request an offer for a loan and not close it immediately. A non-binding loan request must not degrade the prospect’s creditworthiness.
In order to avoid a deterioration, bank advisors have to select the characteristic “credit conditions” for the query. In the credit comparison of the Germany Company, however, the testers came to the conclusion that features such as “Inquiry current account” and “Inquiry credit” were also entered.
The online banks performed particularly well
The credit offers of the direct banks were particularly convincing when testing the Germany Company. The installment loan of netbank AG emerged from the comparison of the Germany Company as the test winner. The offers of the Fine Bank, the Cream Bank and the Infra Bank were also awarded the grade “very good”. The credit offers of the direct banks were convincing in this test because they have automated their lending process and all forms can be viewed online and printed out.
Prospective creditors must answer all questions before the loan request can be started. Incidentally, the loan interest and other conditions were not taken into account in the credit comparison of Germany Company. If you want to take out a loan, you can quickly and easily make an online comparison at any time.