No negotiations with the bank and no paperwork – a credit line is flexible and convenient. But who covers his checking account, pays high interest. Especially with frequent use, it will be expensive. Cheaper it is with a call credit. But does the latter really offer an alternative? Who benefits from the call-off loan and who does not.
An upcoming move or the long-awaited holiday trip – with scarce savings consumers are all too happy to use their credit. But this is the most expensive way of financing. Those who regularly need additional liquidity should opt for cheaper alternatives. An on- demand loan – often referred to as a framework loan – offers the same advantages as a dispo, only at half price. The loan is requested on a separate credit account – usually with a cheap direct bank.
Use and costs
Whether the MRP or the framework loan is the better choice depends on the amount of the costs incurred. The amount of interest on the use of the credit line depends on the frequency of use, the period of time and the amount of money.
Short or long-term needs?
The bank calculates the accrued interest on a daily basis. Accordingly, the duration of use plays a crucial role. Anyone who covers their current account only for a short time, eg for a day or two, will be better off with the credit line. With longer-term use, alternatives such as the call-off credit certainly offer advantages . In the case of the latter, the interest costs can be halved for the same amount of utilization.
Frequent or rare use?
Those who need extra money only twice a year are well served with the credit line. But with increasing frequency of use, the interest costs rise. Customers who regularly use their credit line (eg every month for several days) can clearly benefit from the credit line.
High or low sums of money?
Smaller overdrafts of eg 50 € cause also with the Dispo no big hole in the household cash. At the latest when the customer with several hundred euros in the Dispo stands, the settled by the house bank amount in the wallet clearly noticeable. The decision for or against the credit line is thus also based on the amount of money in each case.
If you overdraw your account, you should ensure a targeted repayment. Otherwise, the amount owed threatens to continue to increase. As a rule, no scheduled repatriation is planned for the MRP. Some borrowers therefore use the MRP field like their own, and the flexibility is ultimately bought at a high price. On the other hand, call-off loans offer a clear repayment schedule. Either a minimum repayment is already included in the terms and conditions of the banks. Otherwise, an agreement can be reached with the bank here. A targeted repayment is guaranteed. The debt risk for the borrower is significantly reduced, partly due to lower interest rates.
Two bank accounts
As a rule, a call-off loan is not available from the house bank. Who would like to apply for the same, in Germany with some direct banks, such as the InDirect , the V Bank or Bank11 find. However, it is not necessary to transfer the entire bank details to the corresponding direct bank. The customer can use the checking account at the house bank as a clearing account. Bookings from the call credit account are made online and transferred to the account at the house bank. Who uses a frame loan, maintains in the result two bank connections. Exception: the account already exists at Indirect. Anyone looking for a cheap online loan today, will face the terms of different banks anyway, and often ends up at a direct bank.
A routine use of PC and Internet is a prerequisite. For whom this applies, you can benefit from the advantages of an online account. However, the personal contact person at the bank counter must be waived. As usual with direct banks, questions are answered on the mostly free hotline. In return, there are no longer any complicated ways to branch out, as well as the commitment to fixed opening hours.
A rescheduling of an overdrawn credit line can also be done with a call-off loan. In addition to saving interest, the borrower benefits from a regular, proportional repayment. As with installment credit, the rate and repayment period can be adjusted to personal circumstances.
An on-call loan combines the advantages of scheduling and installment credit in one product. The borrower benefits from significantly lower interest rates and a targeted repayment. With dispo interest costs in the amount of 25 € per year, the framework credit can already be worthwhile. Because of only a few cents, the cost of the extra credit account is too high. A credit line is the remedy of choice for infrequent use, small sums of money and short-term dispositions.