A loan in spite of a minus in the account is “no broken leg”. It is not uncommon for the loan search to be made against the reasonable background of balancing an overdrawn account. The article provides information on which offer is particularly cheap and which offer is better avoided.

Credit in spite of minus in the account – everything half as bad

Credit in spite of minus in the account - everything half as bad

The checking account provides the necessary flexibility to remain solvent in all situations. Nobody can say that they have never redirected their checking accounts. It is easy to balance the account again if it is only a few USD in the debit. The topic for the account holder is already dealt with at the next salary receipt. The “pleasure” was also not expensive. The trip in the red has cost a maximum of a few USD.

If you handle your current account in this way, you use it exactly as it is intended. Short-term money requirements are financed through the overdraft facility, the following month the account should remain in the black again. In theory it is easy, in practice it takes a lot of self-discipline. At the latest, if nothing works without the overdraft facility by the middle of the month, then it is time to act. A loan despite a minus in the account is necessary to ward off the high overdraft interest.

Overdraft rates are around 10 percent – 12 percent APR. Installment loans are significantly cheaper. In addition, they actually “force” them to make a deduction every month.

Installment loan – overcome the minus on the current account

Installment loan - overcome the minus on the current account

A credit in spite of minus on the account, which is needed for the timely settlement of the overdraft facility, is usually a small loan. If, for example, a loan amount of 3,000 USD is sought for overdraft settlement, the loan comparison provides particularly favorable interest offers. When comparing interest rates, it is advisable to always give preference to interest rate offers that are independent of creditworthiness. Only about 10 percent of all borrowers benefit from interest rates dependent on creditworthiness.

With a loan amount of 3,000 USD and a term of 36 months, Cream Bank leads the loan comparison. (Reading day 05.10.2013). Instead of the 2.89 percent APR otherwise required by Santander, a special offer is available. The expensive overdraft facility with around 12 percent APR can be converted into an installment loan at 2.78 percent. With a constant monthly installment of USD 86.91, the loan pays off without straining the household budget.

The credit example mentioned is of course not tied to any purpose. The money could also be spent on new purchases or a vacation.

Loan offers with poor creditworthiness

Loan offers with poor creditworthiness

Loans that are advertised in spite of a minus in the account and poor creditworthiness often come from the offers of the credit intermediaries. If the current account is to be rescheduled, it is by no means certain to actually save money.

Lite bank is happy to arrange the extra credit. The required effective annual interest rate of 11.95 percent is at the same level as the overdraft facility. Saving is hardly possible in this way.

A credit despite a minus in the account cannot be forced. Anyone who tries it pays.

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