We help you to find a cheap credit line
A credit line – or called disposition credit – is the opportunity to cover the checking account at your house bank. I’ll tell you how you can get your credit right now in this post.
There are many types of credit. A special type of loan is the so-called disposition credit. Your bank provided you with a credit line. This depends on your income. Within this framework, you can permanently overdraw your account without further inquiries from your bank. From this point of view, there is nothing “more pleasant” than the credit line.
But there is nothing stupider than the credit line, which is almost lovingly called “Dispo”. This is the best deal for the bank, because the associated interest rates are absurdly high. They usually move well beyond the 10% limit. A cheap loan is not.
How important this credit facility for the banks, you can tell already from the fact that the EU tried for years to contain these incomprehensible and outrageously high interest rates by law and bring to a reasonably customer-friendly level.
This has not really been achieved, the banks’ power continues to be uninterrupted in terms of overdraft facilities, and so continues: lending money with a repayment credit is quick and easy. He’s still pretty easy to get. But for the consumer – so for you – he remains super expensive.
If you need money at short notice, and you still want to borrow money today, then the Dispo for you should be just a very, very short way of raising funds. It just costs you too much money!
You have to understand that you are no longer solely dependent on your house bank. The financial market has changed dramatically in the past few years. You now have completely different options available to get a loan at short notice. And a loan with reasonable conditions, that is with affordable interest rates!
You can find various providers on the Internet who bring you in contact with tens of thousands of private investors. So you can borrow short term and cheap money. The overpriced credit line should have died for you “forever.”
Easy collaboration is guaranteed with these online credit providers or credit intermediaries. You can create a loan request. But that’s not all: even the dreaded credit bureau (or an entry in a credit protection association) do not have such a strong influence on these financiers as they do with the house banks.
Tip: You should know your own credit rating. Read more about how you can apply for a free credit bureau self-assessment in just 3 minutes.
Another advantage: You have the option of freely deciding on the term of your new loan.
Credit Loan is an expensive affair!
You should only use a repayment credit if you are financially “up to your neck”. The credit line remains the seemingly simplest form of credit, and your bank makes you pay dearly.
Avoid these usurious interest rates! There are many credit providers. They offer you a much cheaper personal loan. In a short time you have cash in your hand again.
Do not lie to yourself now by saying: “Because of the few euros I do not make a riot!” Grab a calculator and take the time for some simple arithmetic tasks. Soon you realize: It’s not just about a few euros!
Even if your account is only a small sum in the minus, add up completely unnecessary interest. That’s the trick with the Dispo: You will be tempted to constantly overdraw your account. These ongoing (“only a few euros”) interest over the course of a year make a nice penny. With that you could possibly already pay part of your summer vacation.
But it’s not just that you might save a summer vacation. Rather, you must be aware that you are moving in a danger zone! What do you mean with that?
Simple: you’ve gotten used to overdrawing your account. Slowly but surely you approach the “end” of your credit line. That means you are getting more and more out of your credit line. And just then, at home, your hot water tank gives up your mind. And now you need a small loan – right now, without any ifs or buts.
Washing or showering or bathing with cold water is a very unpleasant thing. Therefore you want of course as soon as possible a new hot water tank. Buying and installing, however, will cost you several thousand euros – and that’s exactly the sum that now exceeds your credit limit. Suddenly, this money is no longer at your fingertips for you. And now you are pretty stupid (and literally unwashed) there!
At least now you have to fall back on the possibility of a new, cheaper personal loan anyway! Because your account spits out no more money. If you had done that before, you would have spared yourself a lot of money. You may not be reliant on a new loan or an increase in a loan! Got it?
This is how it works to get a credit line!
You start a search on the Internet and search with keywords such as “online credit”, instant pledge, express credit or personal loan. You will find a variety of providers and can very quickly compare many different offers.
The next step: You enter the desired loan amount. Next, your future lenders want to know what you want to use this gel for. And finally, of course, you have to identify with these lenders.
All providers have their own Online Ident system. If privacy is very important to you, do not worry. Your data will be kept safe at these companies and will not be passed on to third parties.
Within a short time – sometimes in a few minutes – you get your first offer. It already contains important figures: the amount of your loan, the desired term and your monthly repayment installments.
Borrow money privately, today and without ifs and buts!
If the conditions are acceptable to you, you agree online. Then you will get a loan agreement as soon as possible. It provides information about which bank is behind your new financing. Because as I said, the conclusion of your loan is via a credit intermediary. He connects with various private investors (= lenders) and coordinates the loan project until it stands. Then it goes on to a bank, where a private loan agreement is set up.
This all runs completely invisible for you in the background and costs you neither money nor time nor nerves.
This collaboration between a bank and several individuals even has the advantage of giving you an instant loan even if your credit check is not that convincing.
The disadvantages of the dispo loan explained!
A credit line has very few disadvantages – but they are serious!
1) The much too high borrowing rates! They are at many banks beyond the 10% limit. Some even manage to rip off their “valued” customers with a 16.75% interest rate!
If you do not react, you should heed one of the most well-known German-language advertising slogans (“I’m not stupid!”) And react accordingly: A new, private loan with current market interest yields a huge savings compared to a credit line.
2) Another handicap is the amount of the credit line. If you are always on the edge of this limit with your minus, an unexpected major issue can checkmate you. Because an extension of this upper limit is of course not provided for a discretionary loan.
For a personal loan, the situation looks much better. Especially if you have already proven to be a “good” debtor to your lenders who repay their monthly installments on time. Then an increase in your credit will certainly not stand in the way.
3) It also speaks against the credit line that you can no longer clearly perceive or assess your financial situation. As you are constantly in negative territory with your account, there is a habituation effect. You lose track of how high your actual regular revenue is. Much more dramatic but still: You lose track of your current expenses or you have no idea how much you have actually paid to debit interest.
And in the end, you do not even know what you can actually afford or what you could put aside for cash. Thanks to the credit line!
The situation with your personal loan looks quite different. Here you can concentrate on a monthly repayment and keep track of your financial resources.
And the most important thing you should not forget a case. Your personal loan costs you much less money than this disposition credit – you save money!
Preserve the view!
Online credit intermediaries must submit to appropriate regulations and are reviewed regularly. There are no “black sheep”!
Still, keep the following things in mind when dealing with a lender.
1) The “registration” with the credit intermediary, the creation of a loan application and all associated notifications and correspondence must be completely free.
2) The identification process can not be prevented. It can be done online or via the post office. In both cases, no costs may arise.
3) Verification of your creditworthiness is inevitable. The credit intermediary is free to decide how he will conduct this process. It is important only: you may not incur any costs.
4) However, you have to accept a cost factor, namely the agency fee. The amount of this fee should be clearly stated in the contract.
Personal loans are always well before a credit line
There are several points why a personal loan is preferable to a so-called prepaid credit.
1) Various providers guarantee you a fast and uncomplicated application.
2) The chance of a positive conclusion is far greater than an okay from your bank.
3) Even with a non-regular income (self-employed or freelance) or a very low income (eg student/trainee/apprentice) there is a real chance of the loan.
4) With the help of this personal loan, you escape the horrendous interest rates of a credit line.
5) The whole process is handled very quickly – It does not cost you a penny and it is not binding!
6) (interest) costs are only incurred when the money has been deposited in your private account.