Are you looking for a loan with no credit rating? Do you want low rates and a fair interest rate? Do you need money to bridge a financial bottleneck in the short term or perhaps want to make a larger purchase, but don’t have the financial means to do so?
Then you might be able to compare a overdraft facility. Because with this you can easily get the urgently needed capital. When granting an overdraft facility, the banks charge a higher interest rate than a normal loan. Therefore, a comparison of the loan rates of the different banks can be worth cash for you.
What is an overdraft facility?
When opening a checking account, the bank employee discusses the possibility of an overdraft facility. The overdraft facility is special because it can only be concluded with a checking account. The holder of a checking account can make dispositions from his account as part of the overdraft facility, even if no account balance is available. Therefore, temporary financial bottlenecks can be compensated with the overdraft facility.
With the opening of the account, there is therefore the possibility to take out an overdraft facility. The credit is essentially a loan. This does not mean that this loan has to be repaid within a certain period. Sometimes bank customers use their overdraft facility for years. The bank calculates an interest rate for the use of the loan. In terms of the percentage, it is comparatively expensive. The cost of the overdraft facility can increase over a longer period of time. Therefore, consumers like to convert their used overdraft facility into a normal loan.
Another option is to compare the conditions of the different banks with each other and to choose the bank with the cheapest interest rate. The amount of the disposable credit available on the checking account is based on the regular income that the employer transfers to the checking account of the employee each month. The overdraft facility can amount to one to three months’ salary.
For whom is the overdraft facility comparison interesting?
Consumers who make frequent use of their overdrafts are well advised to take a close look at the conditions of the individual banks. Already one percent more or less interest makes a difference of several hundred USD in costs within a year. Money that you are guaranteed to spend on something else. The interest amount will be billed to you monthly by your bank at the end of the quarter and collected directly from your checking account.
There are numerous portals on the Internet, such as here: Capital lender, which give you an overview of the current conditions. These can be websites of consumer centers or direct comparison portals. In addition, it is of course also possible to obtain information directly from the various banks about the terms of the overdraft facility. You will find the respective interest rates in the price display.
What are the requirements to receive a credit line?
Actually, only two conditions are the prerequisite for getting an overdraft facility. First, the bank customer must be of legal age. Secondly, it is necessary that he has a fixed income. The amount of regular income doesn’t matter. The banks usually grant the loan as soon as income is available. In addition to a valid ID card, the bank often requests a copy of the current employment contract before concluding an overdraft facility.
Save cash with a credit comparison
Obtaining an overdraft facility without a credit check is relatively easy. The loan gives you the opportunity to react appropriately to unforeseen bottlenecks. The mostly unlimited granting of the overdraft facility makes it a reliable instrument for personal financial planning.