The house bank literally earns a golden nose on your overdrafted current account. The credit for account balancing puts an end to this.
Read in our credit advisor what savings potential results from a debt rescheduling on a customized installment loan. If it is currently difficult with personal creditworthiness, you will learn what is important and which credit options open up for account balancing.
Credit to balance the account – escape the dispo trap
All experts agree on the loan to balance the account. The faster the overdraft facility is rescheduled into an installment loan, the faster the interest rate relief will have an effect. – Because what is common to the dispo trap is that once caught, you can rarely make it out by saving. Loss of overview due to card payments and high overdraft rates ensure that the account balance remains almost unchanged.
According to statistics, everyone who overdraws their account regularly pushes about 3,000 USD in current account debt. “Notorious” overdrafters rarely have to fear a reminder from their house bank. At the overdraft facility, the house bank earns up to 16 percent interest a year. The interest on an installment loan looks microscopic in comparison. 3,000 USD financed through a small loan currently only cost 1.99 percent APR.
For the quickest and at the same time low-interest loan for the account settlement, the installment loan offers itself via the loan comparison. Three simple mouse clicks lead to the lowest interest rate offer. In the case of normal creditworthiness, it is the interest rate offers that are independent of creditworthiness and should be specifically selected by those interested in credit. The priced interest rate for these offers is given to everyone whose credit rating is sufficient for the lending.
Credit comparison – that’s how much you save when balancing accounts
Realistic numbers show more clearly than percentages how big the savings volume at the overdraft facility is. For example, if the account is in the red with $ 3,500, the house bank calculates $ 507.50 in financing costs per year. (Average discount rate 14.5 percent). The interest charges the household budget USD 42.29 per month without paying off a single cent of the debt. If the overdraft facility is to be repaid by “saving” in 36 months, the household budget must raise 118.97 USD per month.
If you enter 3,500 USD net loan with a term of 36 months in the credit comparison calculator, the figures are more gratifying. The Lite Lender offers the loan at an interest rate of 2.69 percent, regardless of creditworthiness. Overall, the financing costs 145.24 USD or 48.41 USD per year, which is about as much as the overdraft facility per month. The loan calculator shows the rate at USD 101.26 per month.
In this calculation example, the account holder saves interest of 459.09 USD in the first year through the credit for the account settlement. Almost half of the monthly payment for the installment loan is offset by the interest savings alone. Nevertheless, the loan is paid off after 3 years. Unlike the overdraft facility, it is not supported year after year.
Overdraft facility loan – bank credit with poor credit rating
If the credit rating is poor, the house bank often grants overdraft facilities, but does not want to grant an installment loan to offset the overdraft facility. The reason for this is not the high interest income, but the usual conditions for regular installment loans. The clerk’s hands are tied when the score cannot confirm secure installment lending. At the disposition he had more freedom of choice.
It would be possible to use the credit to settle an account with a bank that does not decide solely based on Score and Schufa. The manual credit check is the basis of a “risk provider’s” credit decision. In contrast to the score or the Schufa, the decision is based on current and not retrospective data. Around a handful of “risk-taking” banks still offer this form of credit in Germany today.
Providers rarely advertise a loan despite Schufa or a loan despite a weaker credit rating. Against the background of the complex process, the majority of “pre-selected” applications can be prepared. Credit intermediaries take care of the preliminary check and save a lot of work for the internal credit department. An example of a bank that could grant the loan to balance the account even despite Schufa would be that of Essen Bank.
Account settlement without the bank – address private investors
If the creditworthiness is poor, banks are only willing to take a credit risk to a limited extent. In the wake of the banking crisis that gave rise to the USD crisis, the requirements for lending were tightened further and further. To avoid even high costs, the bank loan is only granted if the lending is secure according to professional judgment.
An alternative that the human component does not completely hide is the credit for balancing private accounts. Private investors are not covered by the legal requirements for safe lending. They are considered “not systemically important”. It is important for the chance of a private loan to address a large number of investors in a reputable environment.
The reputable infrastructure and a large number of investors offer good credit lenders and Cream bank for the loan application to private lenders. We advise you to apply for a loan through good credit lenders. The portal offers access to private investors and risk-taking banks. The loan could be used to fund the account settlement despite poor creditworthiness, with just one application through good credit lenders, either a bank or private investors.