Experience report: 0% financing loan

 

The 0% financing is offered by numerous online shops and offline purchases in order to be more attractive to customers. The shops attract with monthly installments without any interest. Which conditions are linked to this financing model and who can conclude them? 

Zero percent financing for cellphone purchases via Agree Bank

Zero percent financing for cellphone purchases via Agree Bank

In August 2017, our editor bought a cell phone from the Agree Bank online shop. The Motorola brand device should cost 133 USD, it was a special offer. The shipping costs via DHL were 1.99 USD. The total amount thus amounted to $ 134.99, which was relevant for the financing.

After the mobile phone has been added to the shopping cart in the shop, it must then be registered using the e-mail address; an order via a guest account is also possible. Then the delivery type is selected as well as the payment method. The zero percent funding is given here. The annual percentage rate here is 0.0 percent.

Maturities with 0 percent financing

Maturities with 0 percent financing

As a customer, you have the choice between different terms. In this case, financing was concluded over 12 months, so a first installment of $ 11.35 uro and then monthly installments of $ 11.24 are due. The first installment is only due when the ordered product has been shipped.

Attention: This type of financing is only possible from a purchase value of 100 USD, with smaller amounts no 0% financing can be concluded.

The terms are between 10 and 33 months, so that a monthly rate for 0% financing is at least 10 USD. A credit calculator is available on Agree Bank.de, with which customers and prospective buyers can calculate their monthly installments without obligation depending on the purchase price and term.

Which bank is behind it?

Which bank is behind it?

Agree Bank’s zero percent financing is handled by Astro Finance. Astro Finance specializes primarily in car loans and consumer loans.

Consumer loans are usually granted in cooperation with trading partners, as in the case of Agree Bank. This type of cooperation enables retailers such as Agree Bank to benefit from higher sales, because this means of financing means that more people can buy a high-priced product.

Expiration of the 0 percent financing

Expiration of the 0 percent financing

After submitting the order, Agree Bank will receive an order confirmation and an email from Astro Finance. In this email you are greeted warmly and congratulated: ” Congratulations, your funding request has been approved “. Then you will be asked to complete the financing online. There are several options here:

  • WebID
  • Postident
  • market identification

The fastest way is the WebID procedure, here you only need a webcam or a computer or laptop with a functioning camera (smartphone with the appropriate WebID app is also possible) and an ID document.

Identification problems for loan completion

Our editor opted for apparently fast WebID procedures. A link takes you to the partner WebID. Information on name, address, age and telephone number must now be provided in an online form. After confirming the information, a video call is started. Here you sit opposite a WebID employee who checks the information. The ID document must then be held up in the camera so that a screenshot can be taken. Finally, the applicant receives a TAN, which he must enter. The following problems arose here: on the one hand the waiting time was more than an hour and on the other hand the employee complained that the camera was too bad and that he could not read the ID. Our editor was put off by the Postident or Marktident procedure and the WebID session ended.

Market identity and duration of the commitment

Since the credit application could still not be processed at Astro Finance, our editor decided on the Marktident procedure. The identity of the buyer and thus the borrower is checked on site in a Agree Bank store and the loan agreement is signed. This was done within 5 minutes at the Agree Bank service point. Agree Bank forwards the forms to Astro Finance. Once the application is confirmed, the borrower will receive an email.

Another problem arose here: It usually takes around a week from the application to the approval and shipping of the product. After more than 8 days, our editor still has no feedback from Astro Finance about the receipt of her documents. No one can provide information on the whereabouts of the documents when asked by telephone at Astro Finance, the responsible store or the Agree Bank online shop. After 2 weeks, the documents finally reach Astro Finance, the application is approved and the cell phone is sent. It is reasonable to assume that the long service life is to be blamed on the shipping service provider.

The Astro Finance Mastercard: serious or rip-off?

The Astro Finance Mastercard: serious or rip-off?

Once the zero percent financing has been completed and the product has reached the buyer, he will receive mail from Astro Finance again a short time later. Our editor also received two letters: one with a Mastercard and a second letter with a PIN. These letters are likely to cause confusion for some customers, because this card is never mentioned before the 0% financing is concluded, only in the small print. And here we come to the crux of the matter: The Astro Finance Mastercard comes as a credit card for the customer, who may be happy about this newly gained financial freedom.

Attention : Here it is advisable to read the documents really carefully and to check with the bank again if anything is unclear. The Astro Finance Mastercard is tied to certain conditions, which result in costs in the form of interest and are used as a means of payment. It is not advisable to use this card without care! The 0 percent financing from Agree Bank is actually free of charge, with no fees or interest. However, if the Astro Finance Mastercard is used in addition to this financing offer, there are additional costs.

The conditions of the Mastercard at a glance:

  • Availability limit of 3500 USD
  • 0 USD annual fee
  • 2.5% monthly repayment rate
  • Withdraw money free of charge from 300 USD

So here it becomes clear: The use of this card is not free!

Conclusion on zero percent financing

Conclusion on zero percent financing

Finally, based on experience, it can be said that the 0% financing via Agree Bank worked well and that it is a serious offer. The drawbacks that had to be made in the lengthy identification process are not necessarily attributable to the provider Astro Finance. The problems with WebID in particular can be attributed to outdated webcams. The financing was concluded and convinced by the favorable rates. The offer does what it promises – there is really no interest due. In this regard, 0 percent funding is highly recommended.

As already mentioned, however, customers should be aware of the purpose and the costs of the Astro Finance Mastercard sent to them. Anyone who is gullible about a free credit card that is suddenly in the mail will experience a bad awakening. If you don’t want to use the card, you can simply put it aside or destroy it.

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