Pro and Cons of Finanzcheck: Expert Insights
If you are considering using Finanzcheck for your financial needs, it’s important to weigh the pros and cons. In this article, we will delve into the key aspects of Finanzcheck, giving you a comprehensive overview so you can make an informed decision.
Understanding the Offerings
Let’s start with a quick overview of the loan conditions provided by Finanzcheck. Here are the key details:
- Minimum loan amount: 1,000 euros
- Maximum loan amount: 100,000 euros
- Effective annual interest rate: 0.40% – 19.90%
- Minimum loan term: 12 months
- Maximum loan term: 120 months
- Instant credit: Not available
- Extra repayments: Possible
- Credit insurance: Available
- Debt restructuring: Possible
- Fees: None
- Purpose: Free to choose
The Credibility Factor
It’s only natural to wonder about the credibility of Finanzcheck. Rest assured, Finanzcheck is one of the largest credit providers in Germany and is considered to be 100% reputable. As an added testament to their trustworthiness, Finanzcheck has received various accolades and holds a TÜV seal.
Unparalleled Transparency
One standout feature of Finanzcheck is its exceptional level of transparency. Throughout the loan application process, Finanzcheck explains the purpose of each piece of information requested, providing you with a clear understanding of why certain data is necessary. This level of transparency is truly unparalleled in the industry.
When it comes to sharing financial information, it is crucial to know how it will be used. Finanzcheck ensures that every potential customer is aware of the purpose behind the data collection, which is a commendable practice that we have not encountered with any other provider.
The Finanzcheck Loan Application Process
To give you an idea of what to expect, let’s walk through the loan application process and highlight the relevant steps.
Choosing a Loan
Similar to other platforms like Check24 and Smava, the Finanzcheck application starts with selecting your desired loan amount and loan term. The actual loan offer from a suitable bank will be provided at the end of the application.
At the beginning, an example is presented below the input field, giving you an approximate idea of the interest rates and terms you can expect:
“2/3 of our customers receive: Net loan amount of 20,000.00€, effective annual interest rate of 4.24%, fixed nominal interest rate of 4.16%, monthly installment of 274.85€, total amount of 23,087.35€, Fidor Bank.”
It’s worth noting that Finanzcheck garnered attention in the past for offering a loan where customers could even receive money back. Under certain circumstances, borrowers could get an interest rate as low as -20.19%. Although this is not the norm, it does highlight the potential for favorable conditions when interest rates are low.
Providing Personal and Employment Information
As expected, the application asks for personal details such as your address, name, and phone number. Subsequently, you will be required to provide information about your employment, which plays a significant role in determining your creditworthiness.
It’s worth noting that, interestingly, Finanzcheck requests specific details about your employer, including their name and address. This is likely done to verify the validity of the employer.
To paint a complete picture of your financial situation, you will also need to disclose your monthly expenses, including rent and health insurance.
Considering a Credit Insurance
Just like Check24 and Smava, Finanzcheck encourages customers to consider taking out a credit insurance. In the screenshot below, you can see the available options. Notably, the option to opt-out of insurance is prominently displayed, ensuring transparent decision-making. Finanzcheck has certainly made improvements in this regard, as this option was previously easily overlooked.
Providing Bank Account Details
As is now common with most providers, you will need to provide your bank account details to initiate the loan request and receive offers.
It is worth mentioning that, similar to many other providers, Finanzcheck offers the option to speed up the process by granting temporary access to your private account. This allows for a more accurate assessment of your creditworthiness, eliminating the need to upload bank statements, etc. While this may save time, we advise caution when granting a company access to your most private financial information. We recommend manually submitting the relevant documents instead.
Receiving Offers
After submitting the application, your request will be assessed online, and you will receive tailored offers via email. These offers will reflect your financial situation and the prevailing interest rates.
Final Thoughts on Finanzcheck
In the past, we approached Finanzcheck with a certain degree of skepticism regarding their handling of customer data. However, the provider has since made significant improvements, ensuring transparency and clarity regarding the purpose of data collection.
Consequently, we can now confidently recommend Finanzcheck. Drawing on our experience with various comparisons, we have compiled a guide to help you secure a favorable loan at the best possible conditions.
