Most people have a checking account through which all financial transactions are processed. The wages and salaries are paid on it, rents and other costs are debited from it. If you have a good credit rating and a regular income, you get a overdraft facility on this current account.
The amount depends on the monthly cash receipts and is usually twice the amount of the monthly cash receipts. But it can also be higher. But what if the overdraft facility has already been used and the account holder needs a loan?
Credit despite overdraft
The banks normally have no problems with this, provided that the information provided by credit bureau is not negative. However, the bank will recommend that the overdraft facility used be included in the loan. This is cheaper for the account holder, because the interest for such a overdraft facility is very high. It also limits the risk of getting bogged down. At some point the bank wants to have their money back on the overdraft facility.
When does the bank say no
If the loan is to be used to compensate for the overdraft facility, there is nothing wrong with that. However, the banks cause difficulties if this is not the first time. There are notorious overdrafters who repeatedly push their overdraft facility to the limit in order to then settle it with a loan. If this happens more often, the person concerned simply cannot handle money and, to the detriment of the account holder, another loan is not approved.
Loan from abroad
If the banks say no to a loan despite the overdraft facility, there is still abroad. Swiss banks are only too happy to give a loan to consumers in Germany despite overdraft facilities. These loans are completely credit bureau-free. Nobody in Germany learns about it. To obtain such a loan from Switzerland, the consumer can contact the various credit intermediaries on the Internet. The annoying trip to Switzerland is spared, because these formalities are done by these financial service providers.