Bonität is the German term for credit worthiness. Bonität determines if, and under what conditions, a loan will be approved. Good Bonität determines above all how quickly the funds will be released. This principle applies to all loan applicants equally. And vitally: the more creditworthy an applicant is shown to be, the less interest he will pay over the course of the loan.

The applicant is legally obliged to pay back the loan in full plus the sum of accumulated interest along the agreed timescales. Normally interest rates are presented as annual rates (interest per annum or p.a.). Interest free loans are very much the exception rather than the rule and are typically associated with subsidised public construction projects.

The establishment of a private individuals credit worthiness proceeds through an independent credit scoring body known as SCHUFA, on the basis of their own credit scoring system. This system is more transparent than the British system where a lending body is under no obligation to explain a decision to refuse a loan. For a fee SCHUFA will disclose the reasons for decisions taken. They refer to statistical models relating to the applicants personal situation and other variables. They are particularly attentive to the possibility of people who may default on their Kredit (loan) and will look for any "history" of this.

Commercial or state subsidised loans bypass the SCHUFA system. Furthermore, personal integrity ("persönliche Zuverlässigkeit") is also something that is examined in a credit check. This relates to an applicant's education and job and so forth. Inevitably such judgments are subjective as are all such measures made when the individual is not known personally to the lender. Nevertheless, anyone looking for an online Kredit can easily make use of the Internet these days. Many providers can be compared through one portal which saves a lot of time.

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