Employees with regular income are usually granted a overdraft facility at the house bank. Many households also use this for smaller financial burdens. However, if there is a major financial purchase, such as a car or a new washing machine, a loan may be necessary despite the overdraft facility. When lending, dealing with individual financial options is important for the bank. It is therefore advisable to create an overview of income and expenses.
The granting of a loan despite the overdraft facility
In principle, the use of a overdraft facility is not an obstacle when applying for a loan. However, the overdraft facility should not have been used to its full extent in the long term, as this could throw a negative light on the applicant. If a loan is to be applied for despite the overdraft facility, it is advisable to include the amount of the overdraft facility in the loan amount. In this way, high interest rates can be saved since overdraft rates are generally much higher than loan rates, and repayment is regulated in the long term.
Submit the loan application
As with any other loan, the same applies to the loan, despite the overdraft facility, that it can be worthwhile to obtain several offers. The duration, loan amount, monthly installments, interest rate and any processing fees should be compared. When applying, it is important to present a realistic concept that clearly describes your own personal financial circumstances. If the loan is not applied for at the house bank, it is essential that the current overdraft facility is mentioned. You only appear believable if you play with open cards and nothing is obscured.
Requirements for credit approval
First of all, the applicant should have reached the age of eighteen and have a regular income. In addition, it is advisable to apply for the loan despite the overdraft facility only if the employment relationship is outside the trial period and has already existed for at least six months. An open-ended contract also makes the application easier. Since Schufa information is usually requested from the credit institutions, this should be as positive as possible. This applies to all applicants.