Credit for account balancing – 50 percent use the overdraft facility
From credit to account settlement, a large part of the population should feel addressed. According to a study, only about half of all households keep their checking accounts constantly without overdraft. According to the study, people who regularly use their overdraft facility are in the red at their house bank with around 3,000 USD. We once “averaged” the overdraft rates of the major credit institutions.
The average interest rate of around 14 percent overdraft rate shows impressively how much money an “overdraft account” gives his house bank. Yes, you read that right, because major banks borrow 0.0 percent of your money from the LCB. Every cent of the overdraft facility that the account holder pays goes directly into the pocket of his house bank. An interest rate turnaround in the overdraft facility cannot be seen.
As a calculation example, we assume an average overdraft of 2,850 USD. This is what the account-holding money house earns, at 14 percent overdraft interest, about 399 USD a year. For comparison, the loan to balance the account, with a term of 36 months, the financing bank would have to be satisfied with interest of USD 29.19. With just one credit comparison, three mouse clicks and five minutes of time, USD 369.81 would be saved.
Debt transfer to the installment loan or save?
Responsible people do not take out an installment loan lightly. Nobody likes the feeling of standing at the counter and asking for money. Repaying on time every month reduces the household budget and of course limits liquidity. Nevertheless, all of these considerations are unfortunately out of place when it comes to balancing an account.
No new money is borrowed to balance the account. The loan already exists, the money has been spent and must be repaid, even if the house bank is not pressing. This does not raise the question of whether money is borrowed at all. It is only a question of who grants the loan and how much interest the financing costs the consumer.
Very few achieve settlement with iron saving. The temptations to pay by card are too great. On top of that, the savings cost more than the installment loan. Starting from a net loan of USD 2,850 and a 36-month term, USD 96.27 would have to be saved each month. In total, iron saving costs 615.72 USD interest until the current account is at zero.
For comparison, the loan to balance the account as an installment loan would be paid at 81.60 USD per month. Interest would be paid a total of 87.58 USD. Which of the two variants is the real economy model no longer has to be questioned.
Personal creditworthiness has an impact
For the vast majority, despite the overdraft, a good or “normally good” credit rating can be assumed. A good free loan comparison fulfills the wish for a quick loan for overdrafting at low interest rates. Three mouse clicks are enough to discover the cheapest debt rescheduling loan. If you want it to be quick, the overdraft facility has been settled 48 hours later, you should pay attention to Videoident.
Videoident keeps the online credit in the fast lane of the information superhighway. In Germany, the identity check for credit application is required by law. At Videoident, the procedure is carried out online via Skype (video telephony). This means that the application can be legally binding about 30 minutes after the online application.
The credit for balancing accounts does not reach citizens so quickly, whose score does not certify that the lender is secure. It would be possible to additionally secure the loan request through a guarantor or property security. Alternatively, a slightly riskier commercial lender could be requested. In this case, however, it would be assumed that the individual case would be examined using supporting documents.
If the score is bad, the credit process takes a little longer. Most people have to reckon with a period of about 5 working days after receipt of the complete documents. If a foreign loan without private credit checker was applied for account balancing, it would take even longer.
Account settlement for difficult cases – serious financing
Borrowers with poor credit ratings are more often dependent on their overdraft facility than people whose finances are always “running smoothly”. The problem is that the account control often gets out of hand with account holders with low incomes. The overdraft facility over the overdraft facility costs up to 20 percent.
Instead of quick credit to balance their accounts, many affected people expect a loan search that is not always risk-free. It is no coincidence that intermediaries for loans with poor credit ratings are repeatedly caught in the crossfire of the media. Our tip for a reputable and risk-free credit for the overdraft facility is to send the loan application to centiloan.
centiloan combines reputable offers for credit for balancing private accounts with offers from banks willing to take risks. centiloan has only attracted media attention since the portal was founded.