Credit despite overdraft facility

Many consumers believe that a used or even exhausted overdraft facility is an obstacle to taking out a loan. But this is not the case. Definitely not as long as the overdraft facility is not overdrawn and the resulting debts leave their mark on the Credit Bureau.

We have summarized for you how you can take out a loan despite the overdraft facility and what small special features you need to consider.

The overdraft facility – tempting and expensive

The overdraft facility - tempting and expensive

Isn’t it very tempting if at the end of the money there is still not so much month left but you can simply use the overdraft facility in the event of a financial bottleneck? Many banks offer this option to their customers in the form of a disposition loan, which is simply connected to the checking account and can be used according to preference and situation.

But this service is not free. But on the contrary. The bank does provide the overdraft facility amounting to approximately 2 months’ net income free of charge. However, if you use this small service, it will be really expensive for you. Because the interest that is called on the amount used from the overdraft facility is quite juicy. Between 10 and 15 percent are estimated for this. Depending on the bank and the contract you have concluded. You should therefore think very carefully about whether and to what extent you want or need to use the overdraft facility.

The alternative

The alternative

If you are already deep in the overdraft facility and see only a few possibilities for a quick settlement of the debt on your own, then it is worth considering a loan despite the overdraft facility. He not only helps you to get out of the overdraft facility, but can also be at your side for further financing. Because a credit in spite of overdraft facility is, as far as you have decided on an offer that is not earmarked, very flexible.

A good example of this would be the classic installment loan, which you can borrow without any problems despite the overdraft facility. The loan amount can be freely selected with this loan. This gives you the opportunity not only to compensate for the overdraft facility, but also to fulfill a heart’s desire, to settle other liabilities or to invest in the future by purchasing various things. In short: With an installment loan you can’t go wrong and steer your life in a completely different direction.

However, the advantages of an installment loan as a loan are far from being exhausted despite the overdraft facility. The low interest rate that can be expected with a good credit rating also speaks for the installment loan. This can be particularly important in your situation, since the effective interest rate on an installment loan is significantly lower than the effective interest rate on the overdraft facility. If you use an installment loan to replace the overdraft facility, you will be able to save a lot of money. You also have the option of paying your debt in small, handy installments. No matter from which corner it may come. The pressure to quickly restore liquidity is therefore completely eliminated. Rather, it opens up new freedom for you that can make your life more attractive and therefore more worth living.

Tip: Finally, we would like to point out that taking out a loan despite the overdraft facility at the bank that manages the overdraft facility is not a very good idea. Rather, look for another loan partner who can offer you a good loan offer despite the overdraft facility. You will only receive this at the bank with the overdraft facility to a limited extent, since it knows your situation and is not very interested in replacing the overdraft facility. After all, they can earn significantly more from the interest payments related to the overdraft facility than if you approved them a cheap installment loan.