According to statistics, every bank customer deposits at least once a year. The interest rate of a covered disposable is in the double-digit range. What the banks are happy about can have fatal consequences for the consumer.

  • But what is behind the system?
  • How should it be used and which alternatives are available when?

The Small Lender Guide answers the most relevant questions about the issue of credit.

The credit line: conditions and conditions

The credit line: conditions and conditions

What forms of disbursement exist?

The credit line is a tolerated form of overdraft and represents a subspecies of the current account credit . Two types are distinguished:

  • Credit line with cover letter: a statement of approval by the bank is issued)
  • Debit credit with bank statement: The bank declares the authorization with a printout on the account statement

The bank always declares the upper limit for both options. This indicates up to what amount funds are made available. If a disposition granted is 1000 Euro, an account holder may continue to make payments and withdrawals even in the absence of credit until this limit has been exhausted.

Under which conditions do customers receive a credit line?

The banks are tied to the awarding of a disposit specific conditions. In addition to the age of majority of the applicant, the account holder may not have negative entries in the Bank . Only in exceptional cases do banks grant a system of disposition in spite of Bank, along with a fixed income . These can be salary arrivals, but also pension payments as well as income from letting and leasing.

 The interest rate of a covered disposable is in the double-digit range. What the banks are happy about can have fatal consequences for the consumer.

Salaried employees and civil servants usually do not have any problems obtaining a credit line if they are sufficiently creditworthy.

Retirees reduce the monthly cash receipt, which is why an existing credit line may be reduced. However, if an emergency loan is applied for at the time of retirement for the first time, it may be that there are problems on the part of the bank, as the age is taken into account.

Unemployed persons who had a postponement before losing a job often receive a notice from their principal bank or a clear grading of the available frame.

On the other hand, recipients of unemployment benefit II have no chances. Housewives also receive no credit line from most banks. If so, the amount granted is small or the spouse is added as another account holder. On the other hand, the situation for students is better. Here there are financial institutions that issue a credit line in the form of student accounts. Prerequisite, however, is a regular salary receipt from a student part-time job . The self-employed and freelancers are strictly speaking out of the ordinary, since there are no regular or fluctuating revenues. But not every bank sets the standards so strict.

Get a Dispo:

  • Employees in a permanent employment relationship
  • Officer
  • Pensioner with a sufficiently high pension

Under certain circumstances, receive a disposition:

  • Pensioners on first application
  • Students with regular income
  • Freelancers and self-employed
  • Housewives and housemen with spouse as co-owner of the account

Do not receive a dispo .:

  • Recipient of unemployment benefits

Which conditions and conditions usually apply to a credit line?

Each bank customer receives a credit line on the current account, provided creditworthiness is given. This means that there must be a regular salary receipt on the account and no negative Bank entry . Here it is worth checking the Bankakte, because the Bank score can be improved. Some banks set up the MRP automatically when opening an account. Who does not want that, must contradict that. The possible loan amount is clarified individually, and some banks set up a disposition up to three times the monthly net salary.

What are the advantages and disadvantages of an emergency loan?

The advantage of a credit line is that no cumbersome loan applications must be made , but it is possible at any time in the given context to overdraw the account. Collateral does not have to be deposited. If there is a shortage due to special issues at the end of the month, financial liabilities can still be met. A separate repayment does not take place, the sum of the Dispos is charged with the incoming funds. In addition to the accrued interest, no additional fees may be charged by the Bank. The financial institutions charge the interest a maximum of every three months . This is calculated on a daily basis. For example, if you only use the credit line for five days a month, you will only pay interest for that period. If the loan amount changes, the adjustment also takes place on a daily basis. A disposition is usually based on the amount of monthly cash receipts in the account . If no other loans are taken out, the debt burden remains predictable and can not increase to an immeasurable degree.

A big disadvantage with a Dispo is the interest rate , which is clearly higher than with a installment loan . It is not recommended to claim a credit line over a longer period of time. In addition, a credit line requires careful management. Although there is a limit, but who continues to bolster his Dispo and other credit commitments, can slip deep into the red. It can take a long time until the account is back in the plus, which is also due to the high interest rates. In addition, a certain habituation effect can occur with a credit line. If the disposition is further exaggerated, the banks charge special default interest , which is higher than the regular disbursement interest . Even by the notice period of 30 days may be disadvantages. A termination without notice is only possible with good reasons. If the financial circumstances of a borrower deteriorate or a foreclosure is initiated, the banks can claim the sum owed immediately .

House bank or third-party bank: differences, risks and opportunities

The credit line at the house bank is expensive due to the high interest rates. Loans from external providers have the advantage that they have to be repaid within a fixed period of time and, in contrast to a credit line, can not be increased. The danger of reaching the financial limit is smaller. It pays to compare the terms of the individual foreign banks.

What conditions apply to the termination and replacement of a credit line?

A credit line is indefinite . Fixed repayment rates are not agreed, the account holder determines for himself, when he is back in the Plus. If money is received, the entire dispo or parts of it will be automatically deducted. This brings a very high interest burden, especially if it is not foreseeable that the entire coating can be removed quickly. In this case, it is recommended to balance the overdrawn account with a installment loan . The respective bank advisor will be advised on this rescheduling. An installment loan can also be taken out with another loan provider in order to trigger the credit line on the checking account in one go.

Is a credit line seizable?

A credit line can only be seized if the borrower uses it . This is the case, for example, when withdrawing cash, claiming the disposition and paying a creditor. If banks become aware of a seizure, the approved credit line is often withdrawn. This is to avoid that the banks go out in the insolvency of the debtor empty. If the account holder uses a credit line on the arrival of an account attachment, the bank stops further use of the system and asks the customer to repay the loan. Because only money can be seized, which also exists real.

The online loan – forms, conditions and conditions

The online loan - forms, conditions and conditions

Which forms of online credit are there?

There are plenty of online credit providers. Most offers are ordinary installment loans or consumer loans. The online loan is requested exclusively via the Internet from so-called direct banks. Some of these financial institutions specialize in certain types of loans , others target certain audiences.

The following forms of online credit are available:

  • Installment or Consumer Loan: Most online banks offer loans starting at $ 1000
  • Mini or small loan: For small financial bottlenecks can be easily borrowed between 100 and 500 euros
  • Sofortkredit: This loan is characterized by an extremely fast approval and a transfer of the desired sum often on the day of application
  • Assigned loans: These loans are used to purchase certain things, usually to buy a car. This bond can often be granted more favorable terms
  • Overdraft: current accounts, which are concluded with the direct banks also have a particular scheduling frame

Online Credit: Opportunities, Risks and Conditions

By eliminating branches online banks have less cost and can offer cheaper loans. They pass on this advantage to their customers . In order to receive a credit line at an online bank, a checking account must be opened. The account management is often free and often the interest rates are lower. However, the general conditions are similar to those of stationary banks. The Bank score is queried and income proofs are required to classify a customer as creditworthy.

The following factors determine whether applicants receive an online loan:

  • Occupation and monthly income
  • Financial liabilities
  • Financial or material collateral, for example in the form of homeownership
  • Amount of credit
  • Purpose of the loan
  • Type of loan

The documents to be submitted when applying for an online loan depend on the professional group . As a rule of thumb, applicants must submit the salary statements of the last two to six months in addition to the application form. Retirees submit their pension notice analogously. The self-employed and freelancers must submit divergent documents that differ from bank to bank. This can be the business evaluation, the income / surplus calculation or the profit and loss account. Some of the online banks offer special student accounts that have a small credit line. But here, too, evidence of regular income must be provided.

The short-term loan with short maturities

When the financial shortage is short, the high interest rates charged on a credit line can be elegantly bypassed with a short-term loan. Small Lender offers to lend between 100 and 3000 euros. The repayment is made in a monthly rate or a maximum of six monthly installments. The annual percentage rate is 13.90 percent. If you repay your short-term loan in a 30-day installment, you only have to take a twelfth of this interest rate into account. Assuming creditworthiness, processing takes place so fast that the payment can be made on the same working day if the express option is booked. Small Lender also grants small loans to the self-employed.

Debt credit and online credit: advantages and disadvantages

Debt credit and online credit: advantages and disadvantages

What are the main differences between the two forms of credit?

The online installment loan is an agreed loan with a fixed monthly installment and a fixed term, which is usually between 12 and 84 months for a consumer loan. Small loans have a correspondingly shorter duration. The credit line, however, is not fixed in time. Also, an account owner does not have to use it, it only provides the opportunity to be liquid again in the event of a bottleneck until the next cash receipt. In addition, there is no monthly installment for a credit line. It concerns only an extension of the disposition frame with an existing checking account.

For whom is an online or credit loan recommended?

The extended scope of a credit line can cost a consumer dearly. This is especially the case when the MRP continues for months at a significant height and is no longer returned. The debit interest exceeds the interest cost of a normal installment loan by three to four times . If the credit line is used once and then immediately returned, no problems arise. For longer-term credit seekers with a regular income should definitely think about a rescheduling and thus a regular installment loan .

What can be financed with an online or credit loan?

A credit line is not earmarked. It can be used for a larger purchase or a holiday as well as for bridging a short-term financial bottleneck . The limit of a maximum of three net monthly salaries must be observed. Due to the high interest rate, an installment loan is recommended for larger purchases. Not least because the principle of fixed rates makes finances more predictable.



Once set up, a credit line is very convenient and with no administrative burden. Since the interest rates are very expensive, it is not advisable to use for long periods . If a large balance has accumulated and there is no financial margin left, a rescheduling in a installment loan is recommended. The most important criterion in a credit rating comparison is the interest rate that the bank estimates. Anyone who is thinking about changing their account-holding institute should therefore always take a close look at the dispozins.