Credit Loan: What amount and what does it depend on?
Sometimes we need an opportunity in everyday life to quickly raise money and bridge financial bottlenecks. Could it possibly help a credit line? But what exactly is this, what does the credit line amount depend on and how high can it be?
What is a credit line?
The disposition credit is abbreviated as well as called Dispokredit or simply Dispo. This is a loan that your bank gives you as part of your checking account. In other words, the Dispo allows you to overdraw the current account (to charge to the minus), so to dispose of more money than your actual balance on the account.
How do I get a credit line?
To get a credit line, you first need a checking account. But that does not mean that a checking is automatically possible with every checking account. If you want to overdraw your account, simply contact your bank – by phone or email. A credit line is always possible if you fulfill the following conditions:
- Regular incoming payments on your checking account (eg wages / salary)
- Proof of salary arrivals during the last quarter of a year
- Good credit, no negative Bank
Good to know: you do not have to reapply the credit line every month. Once set up, you can use it again and again. For the repayment you will not set a deadline. Whenever you want or can, you simply return the overdrawn amount or part to your checking account. Bear in mind, however, that the discretionary credit is subject to a specific interest rate. The faster you pay the check-in, the less interest you have to pay accordingly. Incidentally, if you wish, there is the possibility of a rescheduling into a installment loan, for which usually lower interest rates are incurred.
What is the credit line for the checking account?
If you meet all the requirements, you, as the account holder, can receive a repayment credit. As a rule, this is initially limited to a certain amount. After at least three salary entries, however, it is often possible to increase the dispo. You can then have it adjusted to your monthly income. As a rule, banks grant a credit line at a rate of 2-3 times their monthly cash receipts, for example through wages and salaries. In general, the credit line amount is based on your credit rating. This means: how high the credit line is depends, among other things, on the amount of your incoming funds. It is best to discuss the details with a bank consultant.