Credit in a few moments

by Matthew Williams

With Good Finance, another fintech company is bringing a real instant loan onto the market. Good Finance grants the loans in cooperation with the Good Credit Bank and uses its finance portal. The credits are transferred to the customer’s current account immediately after the digital application process has been completed.

The Good Credit Bank is not a financial institution of the internet age like many direct banks. The renowned private bank from Hamburg was founded in 1921. The focus was and is the advice and support of clients in the accumulation of assets.

Through its banking platform

Through its banking platform

It offers digital companies in the financial services sector products from a licensed bank that the fintech needs to implement their respective business models. The bank’s partners can access their offers via interfaces. Together with Good Finance, the bank is now also active in the lending business for the first time.

Good Finance is a very young fintech company, which currently concentrates solely on the fully automatic issuing of short-term small loans. A fully digital loan is offered using the latest technology. The financial service provider uses a special rating procedure and does not use a Credit Checker for the credit check. The company is apparently still in the introductory phase (as of November 25, 2017). The website is structured accordingly.

On the homepage, you will find a credit calculator with a slide function in the center of the page. In this way, customers can see at a glance what total costs the desired loan will cause. There is currently still an introductory offer. The first loan applied for should be completely free. The introductory offer has apparently expired.

Apparently it is not yet possible to start the application process together with the download of the required APP directly from the website.

Good Finance credit: conditions and application requirements

Good Finance credit: conditions and application requirements

The possible credit line is between 100 dollars and 2,500 dollars. For new customers, the maximum amount is 500 dollars. The loans can be used in any way. The terms can be agreed individually. The shortest term is 14 days, the longest 90 days. If the term is up to 30 days, the repayment will be made in one amount at the end of the term.

Loans with terms up to 60 days can be repaid in two installments, loans with terms up to 90 days in three installments. As far as can be seen, the interest depends on the creditworthiness. The cheapest effective annual interest rate is 5.95%.

The loan can be repaid before the individually agreed term expires. An extension of the loan term is currently not possible but is planned. After proper repayment of borrowed loans, subsequent loans can be applied for. Eligible applicants are persons of legal age who are resident and have an account in Germany.

In addition, regular cash receipts must be ascertainable on the account specified in the application process.

It doesn’t necessarily have to be salary payments. For example, students are also eligible to apply, provided the regular cash receipts guarantee the repayment of the loan.

During the digital application process, Good Finance checks how much credit the customer can afford taking into account the regular incoming payments. If the desired loan amount cannot then be paid out, Good Finance may suggest a smaller amount.

Good Finance credit without Credit Checker?

Good Finance credit without Credit Checker?

Is the Good Finance loan a loan without a Credit Checker? In a way yes.

Good Finance does not work with Credit Checker at all. Credit Checker information is neither obtained nor are loan applications or lending entered in the Credit Checker file.

Credit Checker Score or the presence of soft, negative Credit Checker characteristics are irrelevant for lending.

However, a credit check is carried out in order to meet the legal requirements and to protect customers from over-indebtedness. The test is done in two ways.

On the one hand, the digital account statement made available as part of the fully automatic application process is automatically evaluated. The data are used as the basis for a special rating procedure, which is based primarily on socio-demographic data.

Personal and economic data of the customer resulting from the bank statements are used. Second, Good Finance works with the credit agency Creditreform Boniversum GmbH in order to be able to evaluate official directories in a matter of seconds.

The entire credit check is processed automatically during the application process and takes only seconds.