The most popular but also the most expensive loan that is used in Germany is the overdraft facility: the checking account is simply overdrawn within an allowed range. People who are in the red here for a longer period of time should consider replacing the overdraft debt with another loan, as this is considerably cheaper.
The classic variant: consumer credit
As a loan for overdraft facility, a consumer loan is the first option. Such loans are usually made available quickly and unbureaucratically at the bank counter and usually amount to between $ 1,000 and $ 5,000, which roughly corresponds to the usual overdraft debts. Such a loan is also known as an installment loan because it is usually paid off in monthly installments, with the interest being at least half below the overdraft interest.
To obtain such a loan, it is usually sufficient to submit an employment contract and the last three to six salary entries. However, it is recommended to customers that when taking out a loan of this kind, they simultaneously lower their own credit limits so that they do not accidentally get caught in a debt trap: If you ultimately begin to pay your installments by overdrafting your checking account, you can quickly find yourself in the situation of overindebtedness, from which there is often no other way out than that of private bankruptcy.
If the loan is not approved:
Anyone applying for a credit for overdraft facility compensation can encounter difficulties here: A long and high overdraft on the current account or even on the overdraft facility can lead to an entry with Credit Bureau. For the people concerned, this usually means that a consumer loan is not approved.
However, online banks have become established through the Internet, which maintain their headquarters abroad and are therefore not subject to the strict German regulations on lending. Such online banks grant a loan without any request to Credit Bureau, whereby an employment contract and salary receipts must also be proven.
An online loan is usually a little more expensive than a conventional installment loan at the counter, because the bank bears a correspondingly higher risk. After all, it is considerably cheaper than an overdraft facility.
Other options for obtaining a credit for overdraft facility compensation, such as through private money lenders who offer their services everywhere in newspapers and on the Internet, are rather discouraged. It is better here to provide a guarantor or to be liable for the loan with any of your own assets or valuables, which makes an inquiry with Credit Bureau superfluous.