Credit despite overdraft or direct debit

Take out a loan in spite of overdraft facilities or despite direct debits, here you will find tips on the conditions under which you can get a loan despite these obstacles. You will also find out whether return debits and overdraft facilities appear in the creation file.

Constant use of overdraft facilities and tolerated overdrafts, as well as the appearance of return debits, can be symptoms of serious payment difficulties.

If this is the case, it is primarily a matter of consolidating finances, possibly with the help of debt advice centers, and not of taking out new loans. This article is aimed at readers who, in principle, can afford another loan despite a direct debit and a credit line.

For this group of people, we provide a comparison calculator at the end of the article with which the cheapest loan solution can be found.

Overdraft facility & return debit: the impact on the creditworthinessmoney

Banks double-check the customer’s credit rating before taking out any loans.

On the one hand, a creditworthiness check is carried out on the basis of the documents sent with the loan request and, if necessary, on the basis of bank information. Banks determine whether there is enough freely disposable income to repay the desired loan in accordance with the contract.

Bank information and the evaluation of bank statements are used to determine how serious the customer’s account management has been in the recent past.

The credit check regularly begins with the collection of information from credit bureaus like Credit Checker. If negative characteristics that have not yet been resolved are identified, banks generally no longer conclude loan agreements.

In the case of a loan despite overdraft facilities or return debits, the first question is to what extent relevant information can be found in the Credit Checker information.

Return debit due to insufficient cover & Credit Checker

bank

Return debit means that a direct debit is posted back because it could not be executed.

The amount requested with the direct debit is credited to the account holder again, while the account of the person who initiated the direct debit is debited with the corresponding amount. As a rule, direct debits are made because the account of the debtor does not have the necessary funds.

But there are other reasons. For example, the obligated account holder can have a direct debit canceled because he considers the underlying liability to be unjustified.

The return debit itself is not entered in the Credit Checker. This also applies to a return debit due to insufficient cover. Credit Checker knows no reporting feature for this incident.

The direct debit alone is not a reportable breach of contract. However, it can become a reportable breach of contract. This is the case if the claim on which the return debit is based is not contradicted and a reminder procedure is initiated. As a result of these dunning procedures, the claim may also be reported as uncollectible if the account holder does not pay.

Dispo & Credit Checker

bank

A granted credit line is reported to Credit Checker, as is the setting up of a checking account.

However, the corresponding Credit Checker entry is not negative, but neutral or can even be regarded as a positive credit rating. Credit Checker finds out nothing about the use of the overdraft facility within the granted credit line.

If the overdraft facility is exceeded, there are different case groups.

  • The overdraft of the overdraft facility was previously agreed with the bank. A negative Credit Checker entry is not made.
  • The bank tacitly tolerates the overdraft. This fact also does not lead to a negative feature.
  • The bank does not accept the overdraft of the overdraft limit but points out the breach of contract. The bank then has the right to report this incident to Credit Checker as not in accordance with the contract.

In most cases, however, there will be no tolerated over-drafting of the overdraft limit at all because the bank will not carry out the relevant orders.

If this does happen, you have to reimburse the excess immediately or make a payment agreement with the bank in order to avoid a negative Credit Checker entry.

The situation is complicated when the bank has accepted overdrafts for a certain period of time, but then suddenly insists on behavior contrary to the contract.

If the bank allows the overdraft limit to be exceeded for a certain period of time, this may be seen as an implied contract change. The bank has tacitly agreed to an increase in the overdraft limit. If a negative feature is nevertheless reported to Credit Checker, you can possibly take action against it.

The legal assessment of such incidents is not easy. It is therefore advisable to consult a lawyer or an advice center.

Categories
Payday Loans

Payday loan or installment loan?

Both payday loans and online installment loans are available online, so you don’t even have to leave the house to get it. In both cases, formalities are limited to the minimum necessary, but you will need an ID card and a bank account to which the money is to be transferred. Both these forms of loans are therefore connected by easy availability and a large selection of companies that offer them. And how are they different? Payday loans are usually liabilities incurred for smaller amounts and for a shorter period.

People who decide to do so usually have 30 to 60 days to pay off their debts. Some companies may extend this time, but this is often associated with additional costs. Installment loans can in most cases be taken out for larger amounts, and the repayment period is up to three years. So it allows you to set low installments, which do not put too much burden on the household budget.

Which solution is better?

Which solution is better?

The answer to this question is difficult, because a lot depends on the situation of the borrower and his financial capabilities. Certainly, however, installment loans are easier to pay off due to the possibility of spreading them into convenient installments – a one-time payment of up to USD 4,000 is a much bigger problem for many people than paying monthly amounts of eg USD 400.

This is important due to the fact that delays in paying out payday loans are associated with additional costs. It is worth noting that all types of loans taken out in installments are usually more thought out, as one of the monthly expenses that should be included in the home budget for the near future.

In what situations is it worth choosing an online installment loan?

In what situations is it worth choosing an online installment loan?

A quick loan available via the Internet allows you to receive funds to your account in a short time, so this solution will certainly work in an emergency. It can also be an interesting alternative to a cash loan in a bank that requires many formalities. Of course, it is very important to choose a reliable company that conducts its business legally.

Therefore, before taking out a loan, it is worth verifying whether the selected non-banking institution is on the National Finance Supervision register. It should be mentioned that, contrary to the opinions of many people, this type of loan is available to customers without a negative history in the Credit Information Bureau, therefore people with problems in the past with repayment of other liabilities may face a negative decision. And although this may seem like a major impediment,

How much credit do I get?

Loans are a popular option when there are financial constraints. A loan can be used to compensate for these quickly and at a very low cost today. However, consumers always ask themselves the question in advance:

How much credit do I actually get?

Because not every consumer can get a quick loan. First of all, you should be aware that there are different types of loans. These differ from each other in many ways.

 

Budget bill

Budget bill

You should also know in advance how much credit you can afford. To do this, a budgetary bill should first be made. This will help you quickly find out how much credit is possible. you can download our free template for the household bill as a PDF. You can find free tips on how to fill out the household bill correctly.

Once you have completed the household bill and now know what financial resources you have available monthly to repay a loan, you can apply for your loan.

 

Apply for credit

Apply for credit

In order not to make any mistakes when filling out the application form, we have provided you with a PDF with tips on how to apply for a loan. Basically, the online form for a loan request is easy and understandable.

Of course, the creditworthiness data also play an important role when granting a loan. Also in terms of interest. Because most of the interest rates that are given online are interest rates dependent on creditworthiness. This means that the better the credit rating, the better the interest rate and the cheaper the loan.

In order to be well prepared for borrowing, we have a clear checklist that contains all the important points. You can save this as a PDF here.

 

Find credit online with no upfront costs

Find credit online with no upfront costs

You can find your desired loan online conveniently and quickly via a comparison portal. Thanks to modern processes (eg document upload or video identification), this works in just a few steps, from requesting a condition to comparing offers and lending. Your advantage: You can apply for a loan online without any upfront costs, because not only the request for various conditions, but also the offer overview created for you are made possible free of charge. In addition, free credit advice is usually offered through the comparison portals, which is available to answer all your questions about your loan.

Tip: Many online loan brokers offer you the free use of a loan calculator, which you can use to plan your loan precisely using any number of sample calculations. This will give you a better understanding of how the loan term, loan amount and monthly rate affect each other.

When do you usually get loans?

In recent years we have been observing a boom in the loan market. New loan companies grow like mushrooms after the rain and more and more Poles use loans. According to a study by the Credit Information Bureau, it is young people under 32 who are the most likely to borrow.

Quick loans are very tempting due to their wide availability, quick payment and easy procedure, reducing bureaucracy to a minimum. With loans, you can cover unexpected expenses, meet your current needs, take advantage of unique opportunities and make your dreams come true. In what situations do we most often reach for loans? And when should you avoid loans? We invite you to read.

Changes, changes, changes

Changes, changes, changes

In recent years, we have seen a real revolution in online loans in Poland. This is due to the fact that many people struggled with problems and difficulties associated with a very strict credit policy consisting of increasing the required own contribution and tightening the requirements for potential borrowers.

More and more people applying for a loan received a negative answer or resigned from the loan due to long waiting times and troublesome formalities. Therefore, alternative forms of financing began to be created, which differentiates them from traditional banks by offering loans tailored to the needs of customers, easier, faster and more flexible.

These are online microloans, also called payday loans or quick loans, which have been experiencing a renaissance in recent years. The goal of online payday loan companies is to adapt to customer requirements and improve their offer, establishing higher loan amounts and enabling more convenient repayment in installments. Thanks to this, they can compete with bank loans, and even have an advantage over them due to the shortened waiting time for the loan and minimum formalities.

When misfortunes fall in pairs

When misfortunes fall in pairs

Non-bank loans work very well in unforeseen, stressful and crisis situations. It would be ideal to go through life relying only on your own financial resources. However, we know well that this is not always possible … People who do not achieve high earnings, often have a problem with reaching the end of the month, not to mention putting money away for a rainy day.

And what if you suddenly find yourself in a crisis situation and you run out of money for the most necessary expenses, such as buying medicine, food or a transport ticket? What to do if a computer or car breaks down? Or unexpectedly get sick and you will need to see a doctor or dentist? All you have to do is make the boss late and you may already have problems paying your rent or bills.

If you don’t do it on time, you may have to look for another apartment. Do you want to risk and ride free public transport? Will you not take medicine and let your health problem get worse and have serious consequences? In the above situations, you will lose more than you gain if you do not solve these matters in time.

This opportunity will not come again

This opportunity will not come again

In addition to the crisis situations we are writing about, there are other situations in which it is profitable to take out a loan. If you plan to go on vacation and suddenly there is an opportunity for a very favorable “last-minute” trip, in such a situation it is also profitable to take out a loan. Or maybe you’ve been hunting a swimsuit for a long time and unexpectedly find the perfect copy at a very high discount? If you don’t buy these things now, then you may have to pay the full amount afterward.

When the holidays come, there will be no time to spend time looking for flip flops, a hat or sunglasses and then you will most likely go to the first better store and make a purchase there at the full price.

If you plan to buy a car, look around for last year’s year – such discounts can be used in the first half of the year. It is always worth buying well in advance because then there is a greater probability that we will be able to search for real price bargains.

An investment in yourself

An investment in yourself

Poles equally often decide to take advantage of the loan when the opportunity to invest in themselves arises. It always pays to improve your qualifications, because it will bring measurable benefits in the future.

If you have some free time, sign up for a computer course, and maybe you will be interested in learning German, or consider going to postgraduate studies? By developing new skills you will increase your chances of promotion, finding a better job and higher earnings.

If you live in a small town and your career opportunities are limited, sign up for courses, training, tutoring, and then consider moving to a larger city where you will have a more interesting and better-paid job. Remember, excess knowledge has not hurt anyone yet?

Borrow in installments

Borrow in installments

In recent years, we have been observing the transition from micro-loans, which were used to cover sudden expenses, to the next stage – new credit lines with repayment options in installments. What counts is not only the speed, convenience, but above all, favorable conditions for repayment of the loan, enabling repayment of borrowed money in installments.

An installment loan is much better than a loan that has to be repaid quickly and such loans are most often used by Poles. Thanks to the installment loan, you don’t have to delay your dreams and wait half a year before you collect money for a new TV.

However, thanks to more installments, you have time to calmly and stress-free money borrowed. This is a great convenience for people who do not achieve high income and need to put off for a long time to be able to buy something. Quick installment loans are one of the best conditions for taking out loans offered by loan companies in Poland.