Finding a loan despite a minus in the account could be a “home game” for you, but it could also be a Herculean task. We support your credit request with authentic information.
The goal is to accompany you to the loan that suits you. Find out what to look out for when lending despite existing debt is desired. We name possible problems and the individually suitable solution.
Credit despite minus on the account – everyday credit
The desire for credit proves to be a real “home game” despite the minus in the account for the vast majority of all borrowers. More than 50 percent of all Germans occasionally get into the red with their checking accounts. The statistics also show that regular disposers owe their bank an average of 3,000 USD for overdrafting.
Overdraft facility compensation is not a problem for the average employee household. For such a small amount, almost every adult employee proves to be creditworthy. The majority of personal ambitions – to compensate for the overdraft facility by saving – prevent rescheduling on an installment loan. Using the overdraft facility to fully utilize the personal credit line would be a special case. There are rough boundary lines for every credit model.
In the case of the overdraft facility, the limit would be around twice the net income. As long as this limit is not exceeded, the clerk’s threatening index finger is not to be expected. But there is a need for action to take a loan into the account despite a minus even without warning. If the current account does not clearly cross the zero line at least once a month, the time should be taken.
Debt rescheduling – finance appropriately
The short-term loan, installment loan and mortgage loan models complement each other. Each loan product was created for a specific purpose. The overdraft facility offers an automatic credit line. It is easily granted by the house bank and guarantees permanent liquidity. The borrower usually decides at what point in time it will be used and later settled again.
Installment loans link lenders with noticeably higher requirements. Proof of a regular income is no longer sufficient for lending. Higher demands are placed on the creditworthiness for the loaning of installment loans. In return for meeting higher creditworthiness claims, interest rates fall. Regular installment loan is significantly cheaper than the overdraft facility and is granted to a much greater extent than short-term loan.
As a rule, the granting of credit is not a problem despite minus on the account. The majority of all borrowers not only meet the low requirements for approval of overdraft facilities, but also the preconditions for installment loans. To ensure that the overdraft facility is optimally achieved, any free credit comparison shows the way to low-interest debt restructuring.
Credit despite overdraft facility – when does it become problematic?
Problems with the installment loan despite a minus in the account are expected when the personal credit line reaches its limits. This may be due to existing payment obligations, but also a change of job or a reduction in income. The bank is alerted to an impending credit default risk due to the score or an insufficient budget surplus.
This can also happen if the credit bureau has no negative entries. The prospect can influence his or her household bill. If unnecessary regular payment obligations are canceled, the budget surplus increases. A secure solvency for the repayment of the installments would be demonstrable again. Insurance, mobile phone contracts, but also savings contracts and club memberships are under scrutiny.
If it is not the budget bill but the score, personal initiative does not necessarily lead to success. But, a guarantor or co-applicant could enable the hoped-for regular loan despite minus on the account. The guarantor or co-applicant compensates for the credit risks identified by the score with his good credit rating. Another alternative is the change of provider. Not every bank has the same lending requirements.
Faster credit – low income and limit reached
If the overdraft facility is at the limit, the small income does not allow an increase in the overdraft facility, credit becomes an issue more quickly. In this situation, it is not about large loan amounts, but about bridging until the next payday. It is not infrequently a slightly higher bill that brings the tight household budget out of balance. Specialists for mini loans specialize in solving the problem.
For example, Astro Finance offers quick credit despite a minus in the account – despite a small income. The Berlin-based company grants credit prospects from a secure income of 500 USD per month. First-time applicants can apply for a 100 to 500 USD mini loan with a 30-day term. For the first application, Astro Finance allows ID verification via video ID.
Personal loan – finance difficult cases
If creditworthiness is poor, the search for bank credit can become a Herculean task. For credit institutions, secure lending comes first. If the security of the credit cannot prove the score or the individual case assessment beyond any doubt, there is no bank loan with adequate credit volume.
The alternative could be a loan in spite of a minus in the private account. While private investors are also looking for secure investments, the credit rating is not solely based on economic indicators. Smava provides ideal conditions for credit negotiations with private donors at a serious level.