Would you like to take out a loan in the current account despite the minus? Accompanying the debt rescheduling immediately or “only” investing in a new project?
We present the world of credit from a neutral point of view. No credit should be “put on your eye”. We want you to be able to make informed decisions and to know which loan offer might suit your needs.
Loan despite minus on the account – everyday loan
Searching for a loan despite a minus in the account is more of an everyday wish than a difficult undertaking. Every loan means a payment obligation. The obligation to make regular payments is part of everyday life. Part of the income of each household is reserved for the fixed costs. Fixed costs start with the rent and the additional costs.
For almost all people today, the contract mobile phone and the landline connection with an internet flat rate are also part of the ordinary living expenses. In addition, many people use credit to be able to afford things without saving long in advance. A loan for the car would be typical for the household in Germany. It is not uncommon for another installment loan to come from an earlier purchase.
And of course the disposition. About 50 percent of all current account owners use their overdraft facility, at least from time to time. This small, incomplete list shows how everyday credit is despite a minus in the checking account or despite existing credit obligations. Credit institutions see it that way. Giving additional regular loans is their everyday business. Provided that the prospect meets all the requirements for credit approval.
Installment loan approved – the bank wants to see that
First of all, there is no generally binding, precise diagram of the requirements that credit institutions have for lending. Each credit institution can set its own rules, provided that there is secure lending behind every approved loan. Typically, credit institutions require an unlimited, non-terminated employment contract outside of the trial period.
Income must be generated, at least mostly for regular consumer credit, income that is subject to social security contributions above the attachment limit. The majority of the creditworthiness is rated by the credit bureau Score. The expected good score shows that lending is scientifically safe. In addition, each borrower must be able to make monthly installments.
The positive budget surplus calculation enables this proof. In principle, this is a comparison of the regular costs with the income. The bottom line is that sufficient money must be available to repay approved credit despite a minus in the account. If all the requirements are met, the fully automatic test system, with which many credit institutions now work, issues the final loan approval.
The program then initiates payment within one booking day. Those who do not comply with the test scheme either do not get the desired credit or have to provide additional security, for example a solvent guarantor.
What is the difference with a special loan?
Unfortunately, not everyone who is interested in credit is able to insert it into the general scheme. It is partly due to the fact that the greatest possible “safety reserves” are built into the system. On the other hand, on the evaluation scheme itself.
Here is an exaggerated extreme example for clarification:
A year ago, prospective XY went bankrupt with his civil law company due to an accident. He had a million euros in debt, had no cents, and didn’t even have a job. The negative features piled up in his credit bureau. Then his heiress passed away, leaving him exactly the amount he owed his creditors. He paid his debts and found a new job on top of that.
Although he can now demonstrate a steady, secure income and has no debt whatsoever, he does not get a loan. – Apart from the short-term loan via Vexcash, maybe. The reason for this is his negative credit history. Although she no longer has anything to do with his current life style, it still has an impact. It is also disregarded that the old debts were caused by an accident.
Waste oil had gotten into the ground, dredging and disposal costs drove the company into bankruptcy, not the incompetence of the owner. All this information, which could actually count as a reputation for secure lending, is not included in the usual bank score.
How is special credit valued?
Special loans enable borrowers to check a loan fairly in accordance with current standards, despite a minus in the account. In the case of special loans, credit providers use their right to guarantee secure lending by other means.
They use information and evidence that lie outside the standardized credit check based on the credit bureau score. For example, an in-house heavily modified score or the manual individual case check.
Problem solving – credit despite minus and debt burden
A fair loan despite a minus in the account or despite increased debts can be possible as a special loan. Unfortunately, the few offers for real special credit quickly go under in the flood of advertising. On top of that, it is only a good handful of credit institutions that provide credit with a noticeably poor credit rating without a guarantor or co-applicant. Suitable providers could be found via classic credit brokers and credit brokerage portals.
For example, via cream bank, the loan sought could be possible both through a bank and privately. The peculiarity of brokering bank credit via the free loan comparison is that the borrower does not have to pay a success commission. Alternatively, private donors could be addressed to the required credit despite the minus on the account. Private credit would be applied for within the loan portal.