The overdraft facility is often used as a small emergency anchor if the month is longer than the money available actually allows. Or if small purchases have to be made that will not be delayed. However, once it is exhausted, it can be quite difficult to make up for the beloved overdraft. Because it comes with quite high interest rates, which doesn’t really make repayment easier.
Many consumers therefore try to achieve the settlement with the help of a loan despite overdrafting. If additional money is also required, this can also be included in the planned loan. This kills two birds with one stone and significantly increases liquidity.
Which type of credit is recommended?
Most consumers opt for a classic installment loan because it is as flexible as their life. It can be adapted to every project not only with regard to the loan amount. You can also individually adjust the duration and the amount of the monthly installments. On top of that, the installment loan allows you to offset the overdraft facility at the same time. This saves you unnecessarily high interest rates and reduces the number of your creditors.
If the overdraft facility is not a problem for you and should therefore not be compensated for, you can of course also take out any other earmarked loan. No matter whether consumer loan, car loan or real estate loan – if the conditions are right, any type of loan is possible.
Where you can apply for a loan despite exhausted overdraft facilities
In principle, the application depends entirely on your personal requirements. If these are good, it will not be difficult for you to find suitable offers at almost every bank. Compare them well and choose a loan despite exhausted overdraft facility that not only has a low APR, but also contains moderate and suitable repayment terms. Some banks now offer breaks in payment. Others allow repayment modalities to be adjusted during repayment. Here you should see which criteria are important to you so that the loan does not become a financial burden.
If the use of the overdraft facility and any accumulated debts have already had a negative impact on the Credit Bureau, it may well happen that the traditional banks have no interest in granting a loan despite exhausted overdraft facility. They do not see sufficient security and therefore refuse to cooperate. Here it is worth checking offers from private providers or from abroad. The Credit Bureau is rather secondary with such offers, since other security standards count for private donors or for banks from abroad.
Tip: If you have exhausted your overdraft facility and you have already been asked by your house bank to compensate for the overdraft facility, you should not choose the house bank, but another bank to take out the loan despite exhausted overdraft facility. In such a case, the chances that you will get it from the house bank are not particularly good.
Compensate for disposition or let it persist?
If you have the opportunity to take out a loan despite the overdraft facility being exhausted, you should definitely try to use the loan taken out to settle the overdraft facility as quickly as possible. The interest rate that is waiting for you with an installment loan will be far lower than the interest rate that you have to pay for the overdraft facility. The average annual interest rate for the overdraft facility is 11 percent. You can get a good installment loan with an effective annual interest rate of around 3 percent. You would save a lot of money if the overdraft facility were balanced. The compensation also gives you additional financial leeway. If the overdraft facility is not used and is fully available again, you can react quickly in financial emergencies and get the money you need from the overdraft facility in an emergency. Furthermore, your house bank will be very pleased if you are not “in chalk” with it, although it would make very good money from the use of the disposable.