Good Credit has been offering a disposition loan
Since September 2016, Good Credit has been offering a disposition loan (short overdraft facility) for consumers in Germany and Austria. A credit line in itself is not new or unusual, so such a loan is usually offered to every checking account and by every bank.
Good Credit, however, sets the bar high and promises the first payment after only 10 minutes, with full online registration and a simultaneous discount of 1,500 euros. In this test, we took a closer look at the background, the conditions, and the process – from registration to payment and repayment.
Note: This article is out of date. Good Credit has changed the business model and no longer offers overdraft facilities. Instead, Good Credit now enables installment payments in online shops. You will receive more information later in a new article. Until then, you can find all information directly from the provider: on Good Credit.com
What exactly does the Good Credit overdraft facility offer?
Good Finance start-ups have set themselves the task of changing and modernizing the banking world. This orientation can also be seen with Good Credit, so the focus is on speed and simplicity. The actual product, the overdraft facility in the amount of $ 1,500, should be applied for completely online in a few minutes. The credit line can be viewed at any time or money can be accessed via the browser or smartphone app.
Good Credit promises to apply for an overdraft facility online – find out in this test whether it really works that easy.
The overdraft facility is offered by Good Credit at an effective annual interest rate of 14.99% (debit interest rate 13.99%). The interest rate is relatively high compared to many other banks. Other banks are cheaper or operate in a similar environment.
Good Credit at a glance:
- Overdraft facility, flat rate up to $ 1,500
- APR: 14.99%, borrowing rate: 13.99%
- Free of charge in opening and account management, costs only when using the overdraft facility (interest)
- Dispo can be opened entirely online, no PostIdent required
- Monthly repayment 5% of the MRP, at least $ 20
What are the costs?
Good Credit has no fees for applying, opening an account and keeping an account. Remittances from the discount framework, changes to the repayment modalities or early repayment are also free of charge. Anyone who is in arrears with their payments will initially receive a free payment reminder. For subsequent reminders, Good Credit charges a flat rate of $ 2.50. Return debits are also charged at $ 2.50. Update: Good Credit no longer charges fees for return debits.
There are no basic or setup fees for Good Credit. There are costs for reminders and return debits.
Apart from possible reminder fees and return debits, Good Credit only incurs “interest costs”. New customers receive a free trial month, which allows them to call up cash from the overdraft facility for 30 days without interest. The following examples show the amount of interest accruing after the free trial month:
- Borrow $ 500 for 14 days: $ 1.94 interest
- Borrow $ 500 for 3 months: $ 12.49 interest
- Borrow $ 1,000 for 6 months: $ 49.95 interest
How is the repayment done?
Good Credit requests repayment of 3% of the paid amount per month, but at least $ 10. Different models are available for repayment:
- Minimum rate: 3% of the open amount (at least $ 10) is debited from the current account by direct debit. You can set the day of the debit yourself, for example on the 1st or 15th day of a month.
- Desired rate: You can set the monthly rate yourself, for example, 25 $ per month. The rate must be at least $ 10 and is collected monthly on the desired date.
- Manual: A freely selectable amount can be paid in per month by transfer, but at least 3% of the open amount.
- Balance account: The entire open amount is settled in one sum by bank transfer.