Loans despite overdraft facilities can be approved without any problems. There is less the question of “despite the overdraft facility” than the self-conception of compensating for the overdraft facility as quickly as possible.
Our overdraft facility credit advisor calculates how much money you will save through overdrafting. The installment loan also creates space for additional financing requirements in addition to the current mini interest rate.
Find out more about the effects of overdraft facilities on your personal creditworthiness and how financing problems can be solved.
Credit despite overdraft facility – current account and installment credit are not a contradiction in terms
When thinking about their disposition, many Germans feel sick in the stomach. The current account is deep in the red. (Statistically around 3,000 USD). Unfortunately, the overdraft does not pay off on its own. Iron will to save does not guarantee to remove the overdraft facility. Advice centers denounce: Anyone who has reached deep in the red will find it difficult to get back to the checking account in the credit.
First and foremost, the desire for a loan despite overdraft should pursue the goal of overdraft settlement. The high overdraft rate is disproportionate to the Cream Bank’s interest rate policy. It is different with the installment loan. The interest claims of banks have dropped significantly in recent years, particularly for small loans up to around USD 3,000 in loans.
Instead of 14 to 17.5 percent for the overdraft facility, the installment loan costs 1.99 to 2.69 percent effective interest. The two loans do not contradict each other. The overdraft facility is a short-term loan, while the installment loan is intended for long-term financing. Overdraft facility compensation through debt restructuring on the installment loan is the logical consequence of the different loan models.
Overdraft facility and installment loan complement each other. A credit despite overdraft is no problem with average creditworthiness.
Dispo – impact on personal creditworthiness
The credit line represents only part of the personal credit line. It is intended as short-term financing. Its use within the framework of the framework granted by the bank has hardly any effect on the creditworthiness for regular lending. The framework is already taken into account in the score, which calculates the creditworthiness of the regular loan despite the overdraft facility.
It is advisable not to let the overdraft facility get out of hand. Card payments and modern shopping behavior invite consumption, but the overdraft facility is expensive. For 2,800 USD overdraft the account holder (with 16 percent effective interest) pays 448 USD per year. If the sum were rescheduled immediately, the loan, financed for 36 months, would only cost 28.65 USD in financing costs annually.
The interest savings are clearly noticeable when repaying the loan. If savings were made against the overdraft facility, the household budget would have to cope with USD 96.97 a month at 36 savings rates. With the installment loan of the same amount, it is sufficient to pay off USD 80.17 per month. Interest savings of 419.35 USD – 16.80 USD more per month in the household budget, speak for the loan despite the overdraft facility as an installment loan.
Interested parties with sufficiently good credit ratings can easily decide which loan provider can offer the loan by comparing the loans. Interest rate offers that are independent of creditworthiness are recommended for people with normal creditworthiness. Civil servants and other public employees should primarily be interested in credit-related interest offers. Despite the overdraft facility, you can still have the highest credit rating.
Poor creditworthiness – installment loan possible despite overdraft facility?
The short-term loan is particularly popular when the creditworthiness is poor. Dispo is often still granted if the credit rating for the installment loan from the same bank is no longer sufficient. In this situation it is still possible to protect the overdraft facility and to take out an installment loan for a necessary purchase. If there are no negative characteristics at Credit Bureau, the mail order company loan becomes a low-interest financing model.
Against the background of the increase in sales, mail order companies are granting credit despite overdraft. With short terms, some providers even waive interest claims entirely. With slogans like, buy Christmas and pay Easter, such offers are often advertised. However, the loan is only intended for earmarked purchases from a particular provider.
Rescheduling the overdraft facility for the installment loan, perhaps saddling up additional financing requirements, can be difficult for bank loans with poor credit ratings. For problematic loan requests, we recommend directing the loan application to private donors.
Good Finance or Best Lender – serious private funding
The single currency policy, the opening of the labor market and dwindling pensions have created a large field of difficult credit procedures. At the same time, the Cream Bank is destroying savings in the savings book as a secure form of interest-bearing reserves.
The serious solution for savers and prospective customers is no longer offered by banks, but by internet portals. Good Finance and Best Lender are recognized as leaders in private to private credit. A credit despite the overdraft facility at a fair interest rate helps both sides.
To ensure that lending remains secure for both sides, the portals create a climate of trust. Lenders can use certificates and personal statements to get an idea of the prospect. They offer small amounts of the loan despite the overdraft facility with poor creditworthiness, thereby keeping the credit risk low.
Overall, credit from private to private balances many of the problems that politics have created in recent years.