The overdraft facility is actually intended for emergencies. This is already shown by the extremely high interest rates, which are often called punitive interest rates for a reason. However, many people have to live with the fact that your checking account is often in the negative range. They worry that if you ever need it, you won’t be able to get another loan because of this debt. In fact, such concerns are unfounded. Even the legal situation will help you, so you should look for an appropriate loan.
Credit despite overdraft facility: The bank must offer you an installment loan
For some time now, a law has been in place to help people escape the disposition trap. Basically, that says that the bank has to offer you a cheaper installment loan if your checking account is in the red again and again within three months. You will receive the corresponding letter with the offer by post – you may have already held one in your hands.
For you, the legal situation is good news and bad news. The good news: you can get your loan very easily despite overdraft. The bad: The loan is not free, you have to use it to replace your overdraft facility. Many banks will also delete your overdraft facility to ensure that you do not simply exhaust it immediately.
However, the whole thing can take a positive turn for you: The loan that is offered to you can be higher than your overdraft debt. In plain language this means: You can use the difference as you see fit. As a rule, you can easily get loan amounts of up to $ 3,000. If your overdraft facility is, for example, 1500 dollars, you have another four-figure amount that you can use as you see fit.
Loan despite overdraft facility without overdraft facility: mostly unproblematic
In the event that you need a loan despite overdraft facility that is not used to replace the credit line in your checking account, you should generally also have no difficulty in getting this money. In fact, most banks don’t care if you are overdraft or not. That doesn’t trigger a negative entry in the Credit Bureau or anything like that.
The only questions that interest banks (and all other donors) are: Have you been able to meet all your payment obligations so far? Do you also have enough financial leeway in terms of your monthly income and expenses to easily pay the loan installments and keep a little cushion for emergencies? So if this is the case, you will get the loan you want.