Are you considering a short-term loan? “Money spoils the character,” they say. – But how does the household budget get by when mid-month, except for the “good character”, lacks the resources? If the tank and the refrigerator are empty, lack of liquidity becomes an existential threat.

The banking industry offers fresh money as a problem solution in a wide variety of ways. But unfortunately, not all credit offers are as fast as possible, as the empty household budget demands. With exhausted dispoarding – since 2012 – lure payday loans with the promise to quickly restore the ability to pay.

Short overview – what is it about?

  • Through short term credit, consumers borrow small amounts of credit over a short period of time. (Usually for 30-62 days).
  • In the case of payday loans, published effective interest rates are sometimes noticeably above the cost of disposals.
  • If things are going really fast, most providers charge additional fees. In times of need, borrowers overlook how much the fast money actually costs.
  • We therefore only advise in exceptional cases to mini-credit, flash credit or eFasterCredit.
  • Commercial short-term credit is not alternative. Use possible alternatives for short-term bridging. Mini loans, without guarantor or Mithaftred, can come from free sources.
  • Under no circumstances are short-term loans suitable as a regular permanent solution.

Short Term Loan or Payday Loan – What is it?

Short Term Loan or Payday Loan - What is it?

Short-term credit serves as a collective term for a special form of loan. These include, for example, lightning loans, urgent loans, express loans, emergency loans, mini loans, microfinance, some credit and cash loans with immediate payment.

Short-term credit – origin in Germany

Payday loans enjoy ever-increasing popularity in Germany today. New offers are constantly being created to help citizens quickly overcome a short-term financial bottleneck. Currently, four relevant suppliers share the market. Instacash, viloan, FasterCredit and the Ultrabank. For the first time, the media became aware of microloans at the beginning of 2012 by the start-up Creditmolo from Hamburg.

First offers for short-term credit – difficult market entry

A true storm of media outrage literally swept the portal out of the German-speaking internet. Consumer protection and banking supervision immediately went into “offensive position”. The case of the project “Creditmolo” came about by an unfortunate naming. Between “Creditmolo” and the protected brand “credisolo” saw the Hamburg district court a likelihood of confusion. It banned the practice of business under the newly introduced name.

Around the same time Instacash started in Berlin with its first payday loans. Thematically ajar the business idea was equally close to “Wonga”. This start-up found with its concept a much milder medial echo. Today Instacash has the reputation to be the first provider to have set up payday loans in Germany. Crucial to the success was that Instacash penetrated into the heart of a needy group treated in Germany in a neglected way.

Successful by paradigm shift in lending

People with a weak credit rating were rejected for the first time in large numbers by their house banks as a result of the euro crisis. Suddenly, the retiree got his lifelong loyalty to house bank no longer repaid by uncomplicated loan. Human factors for lending gave way to tough business concepts that only pursued the goal of collateral. Borrowers inevitably dodged creditend, eicredit and Instacash for quick mini-credits.


Credit tip: borrow modern money as needed Getting excited about changes in regular credit does not help with urgent, unavoidable credit needs. Modern portals and contemporary business ideas make it possible to free oneself from difficult financial situations.

Better allocate short-term credit – international look

Better allocate short-term credit - international look

Short-term credit or Payday Loan, comes as an idea from the Anglo-Saxon economic area. Allocated, partly through intermediaries, very small, fast cash loans with extremely short term. Obtaining credit is easier than with classic credit models.

Simpler loan approvals are based on statistically proven probabilities. Small, short-term liabilities are likely to pay even less solvent creditors back.

What’s behind the idea – look at loan offers from other countries

The idea of ​​Payday Loans, especially represented in the UK, US, Canada and Australia, was born out of necessity. In these countries it can be very difficult to get a loan at all in a timely manner. Without easy quick access to debt, citizens will seize every opportunity when they urgently need money. From pawnbroking to short-term loans, every means is right to bridge a short-term liquidity shortage.

International credit burdens – sometimes only the mini loan remains

Granting regular credit just “very safely” is now standard in all developed world countries. For credit to be considered safe, the borrower must meet at least the minimum requirements. What conditions must exist, regulate international treaties. Minimum requirements are: Proof of permanent residence and sufficient proof of income.

A major hurdle for secure lending, for example, would be the lack of a register of migrants in the United Kingdom. Without a compulsory official register in the UK, Scotland or Ireland, proof of residence will be difficult. Only 6 months of consecutively paid consumption bills can prove that a prospective customer actually lives at the specified place of residence. After each move, it starts again.

International working world – credit constraint

Other difficulties arise through “Hire and Fire”. Above all, globalization offers companies market opportunities that can react flexibly to needs. Permanent employees, outside of key positions, reduce flexibility and reduce company profits. In the same breath are many “self-employment” to call. As a “one-man business”, unemployed workers secure their income.

How uncertain this income is, everyone quickly realizes. In the case of long-term lending, joblessness or illness would massively jeopardize real repayment ability. Rich mini-entrepreneurs are rich only in “TV-Soaps”. Most of them are just making ends meet. Upholstery for bad times, so at least the credit can be served missing.

Payday Loan – Short Term Loan The Global Answer

Nevertheless, neither the taxi driver in London nor the (illegal) immigrants in the US can do without credit aids. In people in a difficult life situation, there is even more and more unavoidable need for credit. To still get credit, people are clearly willing to pay high financing costs. This goes up to the acceptance of seemingly medieval interest claims and imaginative special costs.

Flip side of the coin – risk interest for real credit risk

Overall, people pay back small loans at 96 percent likelihood. Relatively high interest rates and, above all, very high additional fees mean that, despite slightly higher default rates, the total bill for providers is absorbed. Credit losses published in the media show about 4 percent default risk in short-term credit. For example, according to credit bureau, regular installment loans are only about 1.5 percent.

Credit tip – emergency loan as a short-term loan Lack of liquidity at the right time can lead to expensive follow-up costs. Short-term credit, so that not only the electricity provider stops its provision, can be cheaper than the follow-up costs of the delivery lock. Important, in order not to finance unnecessarily expensive, would be alternatives to consider and pragmatic.

Payday Loans – back to Germany

Payday Loans - back to Germany

The sometimes dramatic changes in the labor market as well as stricter credit checks as a consequence of the euro crisis are causing similar suffering in Germany. Simply overdrawing the account fails due to the widespread exclusion of “insecure” borrowers. It is bad about the credit opportunities of countless pensioners, single parents or temporary and temporary workers.

Bar – score

Fast traditional credit, low interest rates and quick payouts at no extra cost, the traditional credit market offers today. The benchmark for lending money within the shortest possible time is the credit bureau score. It consists of the personal contract and payment history of the past and the values ​​of relevant peer groups. With a good score, regular banks turn to green waves for lending.

However, even with impeccable payment history and good income, the score can classify lending as “too risky”. Individual (rare) false estimates arise from the assignment to comparison groups. An unfortunate chosen place of residence, with many defaulting payers, can already noticeably reduce the credit rating.

Overall, increased demands on borrowers, but interest rates across the board are lower than ever, aggravate the situation. A slightly weaker rating already prevents easy fast credit. The bank demands guarantors or even refrains from lending. All the harder it is for people relocated from regular loans when high bills make the household budget waver.

Short-term loans – new target groups

The majority of active short-term credit providers in Germany serve the mass market of private credit requests. Small but secure income or pension is enough to prove repayment ability. The business is booming, so the logical consequence is the offer extension. There are increasing activities for “special financing” with a special focus on a specific clientele.

An example of this would be “UPPERCREDIT” (upper case capital letters) for business loans via Instacash. In the basic conception, the short-term loan over UpperCredit corresponds to the Instacash loan for private borrowers. Based on the interim financing for the self-employed, short-term credit is only much higher than for private borrowers. Currently Instacash is revising the offer. Lending is currently not possible through the loan provider boom.

Active Credit Offers in Germany – Credit Sums

Surname loan amount
Instacash 100 euros to 5,000 euros
viloan 100 euros to 600 euros
FasterCredit 50 euros to 1,500 euros
Camibank 100 euros to 3,000 euros

What is the special feature of short-term credit?

What is the special feature of short-term credit?

Short-term loans offer comparatively quick access to small loan amounts. Apart from the usual application requirements, such as an income in the attachable area, attracts the quick, easy money. The smallest proof of income, even provided by the state pension, can generally qualify for lending. Some providers are even open in principle to grant the short-term credit despite credit bureau.

In contrast to the regular installment credit or the opening of a current account with Dispo, the credit bureau does not necessarily have to shine white. The short-term loan addresses a target group under these “loose” requirements, which otherwise has to reckon with the rejection of their credit. In spite of bad credit bureau or a too limited credit rating, credit is made possible in part by purchasing additional fee-based certificates.

In the sale of special services that do not appear in the APR, the real business is the fast money.

Short-term credit with negative credit rating

Surname Credit despite credit bureau?
Instacash Despite credit bureau with credit certificate possible
viloan Despite credit bureau possible
FasterCredit No credit with negative credit bureau possible
Camibank No credit with negative credit bureau possible

Application Procedure – Apply quickly for a short-term loan

Application Procedure - Apply quickly for a short-term loan

Time is money. Both have the target group of users of short-term credit only to a very limited extent. Especially fast it should go with the short-term loan. A slightly reduced credit rating should not hinder a quick credit procedure, the immediate credit decision and loan payment. We are looking for a lightning loan or a loan with payment within 24 hours in the network. The entire application process should be as complete as possible online.

In keeping with the fast, convenient application route, all relevant microcredit financers active in Germany offer their online application. As an additional application path, Instacash launched a partner program. Regional partner shops offer their customers on-site the application for a lightning loan. Nadelöhr ID check: The traditional but time-consuming post-ID procedure would be possible for all providers, but nevertheless avoidable.


Short Term Credit – ID Review Overview:

Surname Save time – ID check
Instacash Online application with videoident
viloan Initial application with copy of identity card
FasterCredit Online application with videoident or verify-U
Camibank Online application with videoident

Credit check – how do the providers check?

Credit check - how do the providers check?

Equal to all providers, is a customized credit check to avoid credit losses as much as possible. A credit bureau credit rating get Instacash, FasterCredit and the Camibank. The credit rating is checked by a score tailored to the specific circumstances of short-term loans. Thus, the credit check remains within the fast automatic procedure.

viloan goes a special way. Basically, the provider gets credit information. (Condition query). Behind the final credit decision is not a computer program, but a human decision maker. Disadvantageous – manual testing always takes longer than an automatic process. Benefits bring human competence in border areas. Despite credit bureau, in individual cases a loan can be approved, which systematic examination systems reject.


Credit tip – mini loan despite credit bureau With weak negative credit bureau features, the automatic credit check provides a time advantage through the faster credit decision.

If the credit bureau credit rating is severely impaired, then automation leads to lending in border areas, only for faster credit rejection.

The key question, which method will be more successful in an individual case, can only be answered by a realistic self-assessment.


Credit Terms for Payday Loans – Credit Comparison

Credit Terms for Payday Loans - Credit Comparison

A credit comparison for short-term mini loans is not meaningful after the pure APR. If it was only about the pure effective interest rate comparison, the winner would already be determined. Under certain conditions, the money can even be borrowed without interest.

Above all, providers earn money from the additional options not included in the APR. Unfortunately, that makes the credit comparison much more complicated. We would like to make it easier for you, your individual comparison of short-term credits, through points awarded by us.

Our rating is based on subjective impressions of how the provider deals with us during test calls. We also use neutrally collected data on how satisfied customers were with the rated providers. Added to this are current analyzes of anonymous data evaluated by us. We hope to create the most authentic image possible for your individual decision.

Short-term credit – Overview of the effective interest rates:


Surname specified effective interest rate
Instacash 13.90 percent annual percentage rate
viloan 7.95 percent annual percentage rate
FasterCredit 10.36 percent eff. Annual interest rate – optional 0.0 percent
Camibank 8.95 percent annual percentage rate


Development of the effective interest on short-term credit

In the effective interest rate offers, after market entry of the Ultrabank into the supply market of the quick cash credits (2015), came on the move. All short-term credit providers, with the exception of Instacash, have opted for discernible interest rates. In comparison of the effective interest rates, the relevant providers among each other, the interest level has fallen significantly.

Also noticeable is a revision of the websites in direct comparison to the performances of the previous years. The pages all look professional, are intuitive to use, and finally provide all the information required by law to compare interest rates. Effective interest rates are now expressed by all providers per year and not as sometimes before, per month. The argument of yesteryear, short-term credit costs more and more interest than the Dispo, is also off the table.

Short term credit – maximum loan amount for initial applications

Surname Initial applications
Instacash 100 euros to 500 euros
viloan 100 euros to 600 euros
FasterCredit 50 euros to 600 euros
Camibank 100 euros to 3,000 euros


Credit comparison to previous years – loan amounts for initial applications

Compared to the previous offers for payday loans, the loan amounts for first-time applicants have not changed significantly. Only FasterCredit has slightly raised the initial application limit. For the Ultrabank, as the “youngest” provider, we unfortunately have no storage of older direct money offers.


Short Term Loan – Installment Option / Initial Application

Surname payment by installments
Instacash Maximum 3 installments for new customers
viloan Always repayable in one sum
FasterCredit Option to pay in 2 installments for all borrowers from 300 euros
Camibank Minimum 2 installments maximum 6 installments for all borrowers


Short term credit – additional costs for installment


Surname Additional costs for installment
Instacash No additional costs for installments only interest
viloan Always repayable in one sum
FasterCredit 49 euros additional costs for this no interest
Camibank No additional costs for installments only interest


Additional costs – international payday loans take influence

When comparing the additional costs for the installment payment option, the impact of the media vortex on international providers becomes apparent. In the Anglo-Saxon area, the additional costs for short-term loans are the central focus of public attention. Excessive costs for additionally bookable options even concern the parliaments.

Stricter regulations should prevent the abuse of market power. In Germany, there was a similar discussion only in the founding year of 2012. However, the focus was on the business model only at Creditmolo. The ban on the use of names meant that the critical voices disappeared from the medial focus. Nevertheless, the international hype seems to affect Germany.

Only one supplier exploits the current legal scope in Germany. In addition, FasterCredit can be compensated for optional installment payments outside of the effective interest rate.


Short Term Credit – Payout speed without express function

Surname without express function
Instacash On average about 4 – 7 working days
viloan On average about 4 – 7 working days
FasterCredit Up to 15 working days possible
Camibank On average about 3 – 4 working days


Short Term Credit – Express Payments

Surname Extra costs for express payment
Instacash 49 euros for within 30 minutes up to 24 hours
viloan 30 – 45 Euro for within 24 hours (after total)
FasterCredit 22.50 – 90 Euro for within 24 hours (after total)
Camibank 25 euros for within 24 hours – currently free

Fast credit like, but extra

Fast credit like, but extra

From the point of view of borrowers in material need, short-term credit depends above all on one thing: the money needed should be available as soon as possible!

Fast loan payment – decisive argument

With the “message – faster credit” advertise providers for short-term credit. Only the fastest possible loan procedure and the fastest possible pay out are what most potential creditors are looking for. The vast majority of borrowers could take other paths. Not everyone who seeks a lightning loan is indebted to the bottom or has a negative credit bureau.

Why credit at the last minute?

Some people are simply embarrassed to go to the house bank and look for a quick loan solution. It may sound unbelievable, but it may be shameful to ask the bank for emergency credit. Many are in the club together with employees of the house bank. People know each other and fear for their own reputation.

“Personal note of the author – my (past) childhood sweep leads the branch of my house bank. For me, a financial state of emergency would be emotionally extremely embarrassing. “

Others are so busy with their day-to-day business that they simply “overslept” to look after a loan in good time. Examples range from fast credit for the wedding to last-minute credit for the vacation. This is exactly where the cost-limiter of Payday Loans comes in.

Earn money without effort – costs fall in “microfinancing”

For the provider, the fast transfer costs practically nothing. Example: For transfers from Sparkasse to Sparkasse (in Germany), the money for the payee can be available within 30 minutes. In the Spela room there are no additional costs 24 hours. Nothing else is the express payment service.

The credit decision is automated for most providers. At reasonably passable values, a mini loan always goes smoothly. The time required for a computer is in the millisecond range. For the whole package (fast credit decision and payment), to calculate up to 90 euros plus interest, can not be well spent.


Credit tip: Avoid eFasterCredit at all costs In most cases, a simple entry in the mobile phone organizer or on the wall calendar can avoid the unnecessary additional costs. Act on time.

If there is enough time, it is not worthwhile to apply for a quick mini loan without the expensive express payment.

Without express payment, the lightning loan is not faster than any ordinary (cheap) credit.


Short-term loans with poor creditworthiness – problem solving?

Short-term loans with poor creditworthiness - problem solving?

With poor credit, the likelihood of needing a smaller loan is relatively high. More frequent demand for credit on a small scale, satisfied outside the bank, is justified by the narrower limits for regularly available liquidity assistance. Problems with poor creditworthiness can be based on poor personal payment behavior, by comparison groups or by low income.

In credit valuation these factors are not equal. A look at the credit bureau excerpt is enough to recognize facts. He shows that the credit bureau score is weakened by the influence of peer groups and not by their own culpable behavior. Approving short-term credit from this perspective is not an unmanageable risk.

Small income does not automatically mean that you do not pay your debts. From a short-term perspective, low-income lending is again only slightly riskier than higher incomes. The debtor is able to pay a microcredit. Most low-income people are grateful for the credit opportunity and repay the trust of real repayment efforts.

Good prospects – short-term credit despite credit bureau

The credit bureau registers breaches of contract by reporting its members. Not every negative message to the credit bureau has an equal effect. For example, regular payments could be reported after a reminder. The debtor pays, but causes additional time and expense. A soft negative credit bureau feature would be noted. For the short-term loan, the risk remains manageable.

Behind every modern credit provider is an efficient collection and collection. The bottom line is that the potential reminder becomes really expensive just for the borrower. On top of that, he would then be charged for future loans. Nobody, with recognizable negative credit bureau traits, voluntarily gives away the chance of future loan assistance. A loan approval should be easy with soft features. It is different with hard negative characteristics.

Special case – credit despite hard credit bureau characteristics

Hard credit bureau features automatically disqualify you from assigning any regular credit. There is neither a dispensation nor the borrower gets the chance to regular installment credit or on real credit cards. Exceptions that allow a loan anyway are usually based on the completion of the note. In plain language the debt was paid, the payment note registered at the credit bureau.


Credit tip – Credit with hard negative feature Whether a short-term loan can be granted with paid hard negative feature is always dependent on the individual case.

For example, if there is a noticeable over-indebtedness, neither credit certificates nor nice words help. Even short-term credit must “you can afford”. If you can not do that, you will not get a loan. – Regardless of how much he promises to repay.

Repayment – in one sum or on installments?

Repayment - in one sum or on installments?

The credit comparison shows that not all relevant credit providers for urgent and lightning loans treat installment requests in the same way. If an extra fee is to be paid for the installment, the annual percentage rate becomes a minor matter. If 49 euros of optional fees for 600 euros of credit were paid with 2 installments, it would be calculated to have an effective annual interest rate of 87.91 percent. (Nominal interest 64.77 pa).

The agreement is covered by the right of contractual freedom. The missing (statutory) obligation to include optional additional offers in the interest calculation prevents the accusation of immorality – of the Zinswuchers. According to BGH, interest-bearing usury exists if the interest burden is twice as high as the comparable market interest rate.

Processing fees, one of the costs of former regular installment loans, are even completely prohibited. This shows the legal special position of the microfinance offers. Compared to the usual installment loan, the lender has much more room for maneuver to generate profit through “optional” additional offers.


Credit advice: repay loans as quickly as possible Regardless of optional additional costs, any loan should be repaid as soon as possible.

Broken down to the short maturity of 30 days, interest rates were low.

The longer the repayment delay, the greater the impact of interest claims on the financing costs.

Microfinance without intermediaries – direct mini-loans

Microfinance without intermediaries - direct mini-loans

A recurring media discussion, about “horrendous switching costs” for short-term loans is more “shadow boxing”, as a real problem. Of the bids compared, the highest Instacash could be discredited for taking on additional “big brokerage fees”. Only this credit marketer, called for short-term credit providers for mini-lightning loan, is not in possession of a bank.

But, the product “Short Term Loan via Instacash” is a joint product in collaboration with a bank. Behind Instacash stands the Net-m Privatbank 1891. It belongs to the Docomo Digital Germany GmbH, which until 27. 12. 2016 under the name Net Mobile AG firmierte. The Net-m Privatbank 1891 is geared towards financing modern online products. Source of the money, as a parent company, is the Japanese mobile operator NTT Docomo.

In addition to the costs recorded in the credit comparison, always starting from January 2017, none of the providers incur additional placement costs. So the discussion is philosophical overall. Especially because, except for the short-term credit of Ultrabank, the funds are all foreign banks.


Credit tip – origin of the money Whether short-term credit comes directly or indirectly from Finland, Malta, Japan or Germany is not a quality difference in a global world.

The decisive factor is how much total cost will be incurred for the loan!

Alternatives to short-term credit – much cheaper to finance

Alternatives to short-term credit - much cheaper to finance

Microfinance vendors are solving small liquidity problems in a rather expensive way. Since the Ultrabank committed to direct money, interest rates have fallen, but alternatives are still cheaper.

Overcoming bad shame – accept offers

False shyness towards the house bank prevents short-term liquidity expansion in real time. At the MRP, the clerk still has comparably large scope. If the house bank only allows a credit account, the change to Fidor Bank may be interesting. It waits again “only” a checking account on the credit balance, but also the money emergency call.

What is the money emergency call – costs and payout speed

About the occasionally empty purse, the Fidor Bank has thought. The first money emergency call leads in real time to a mini loan for 30 days over 100 euros. If everything goes smoothly, the borrower pays back punctually, the next emergency is up to 199 euros ready. This sum may be reimbursed within 60 days.

Once again for emphasis, loan application, credit decision and loan disbursement are done in real time .

Overall, the emergency money costs the customer exactly 6 euros. Still a proud return, but money in real time. Disconnected from the mobile phone, the borrower is allowed to line up in the queue at the ATM. Until his turn, the money is there too.