Many bank customers will be provided with a disposition credit by their bank. Since overdrawing the checking account is very expensive, therefore a credit for account balance can be profitable.
This credit line enables the account holder to cover his current account by the agreed amount. Often the account can be overdrawn by one, two or even three monthly salaries.
Good house banks help – credit for account balance continues
Most banks let a disposition credit pay rather expensive. Often the interest rates on the granted credit line are double digits.
Anyone who has permanently overdrawn his checking account is usually informed by his bank about this circumstance. Good banks arrange a consultation with their bank client in an attempt to clarify the current financial situation.
Often a small credit for account balance is enough. This loan is cheaper for almost all branch and online banks than the discretionary credit.
For a current account to be compensated with an additional loan, the bank customer must be creditworthy. To determine the creditworthiness of the administrator of the bank a Private Credit information and checks the creditworthiness.
This measure ensures that the borrower can meet his payment obligations, including credit. If a credit is provided to clear the account due to the credit requirements, it is possible that the credit line established will be reduced or canceled.
In this way, the bank prevents further debt from its customers and at the same time reduces the default risk of the granted credit. In the case of a negative Private Credit, no credit is usually granted.
Lending Accounts – Online and Direct Banks
More and more often loans are requested on the Internet. This is mainly because the loans from online and direct banks are relatively cheap and can be applied for around the clock and even at the weekend.
However, loan seekers need to be familiar with a computer. Since there is no advice on the Internet, a loan seeker should know exactly which financial product pays off to balance the checking account.
Anyone opting for an account balance loan from an online or direct bank must be able to demonstrate a positive reputation and a good credit rating. A cheap online or direct bank is found on the Internet on a consumer portal for loans.
These portals are equipped with credit calculators, which restrict a search for the right bank. To search simply the required loan amount, the desired term and the intended purpose are indicated.
On the portal page, after entering a number of banks will be displayed, which offers a credit according to the criteria. For easier comparison, all offers contain the same credit information.
These include, for example, the name of the bank, the borrowing rate, the annual percentage rate of charge and the monthly loan installment. The displayed results are always calculation examples.
Anyone who has found a suitable account balance loan will be redirected to the bank’s website by mouse click and can complete the online application form.
Loans from credit agencies – only conditionally suitable
Often credit seekers are denied a loan from a branch, online or direct bank due to a negative Private Credit. In these cases, credit agencies can help.
For these financial service providers, who require a license according to § 34 c GewO for their activity, a credit for account balance is also available. Loan seekers can apply for a debt-free loan at a credit bureau.
These loans are available since August 2016, for example, at the credit agencies Bon loan or Maxda up to a sum of 7,500 euros. In the case of schail-free loans, the bank will not obtain any information on the application.
However, the loan seeker must offer other collateral. For example, anyone applying for a schafafreien loan from Maxda must prove that they have not been terminated as an employee, employee or civil servant.
In addition, a minimum income of € 1,150 is required and the borrower must be between 18 and 61 years old. Whether the taking up of the loan is profitable must be exactly calculated by an applicant.
As with the cost of a discretionary loan, lending rates on a non-scholarly loan are often double-digits.
Credit marketplaces – Loans from private individuals
An alternative to a credit intermediation is a credit marketplace on the internet. The most famous German credit marketplaces include Smava.de and Auxmoney.
However, the idea for these marketplaces comes from the USA and Great Britain. There, the portals are known as peer-to-peer networks.
On these Internet portals, loan seekers make loan inquiries and are provided with loans by private investors. Since the request for a loan can be made individually, credit on a credit market is also available for account settlement.
Since the credit seekers are classified on the basis of their Private Credit information, the credit of credit marketplaces can be relatively expensive. The worse the Private Credit the higher the annual percentage rate.
Balance of current account – Compare loans
The higher the creditworthiness, the better the choice of banks and financial service providers offering cheap credit. If you need credit for account balancing, you should compare many different loan providers.
Credit agencies and credit marketplaces are only conditionally recommended due to their more expensive loans.