Most checking accounts allow the account holder to spend more than the balance. This disposition credit is very flexible, because it is easily available without complicated application and can be used freely. The account holder only has to indicate when opening the account that he / she wants to have a dispo-framework to his current account or later, for example. B. in the online account.

In order for the credit line to be granted, a regular salary must be proven. The amount of the discount is usually a maximum of two to three times the monthly salary. Direct debits are then redeemed even with negative account balance, so do not produce expensive returns and in the wake reminders. You can easily make transfers up to the credit limit, pay by debit card or pick up cash at the vending machine.

High interest rates 

High interest rates at the Dispo

However, the banks are well able to pay for this convenient use. Just under 10% interest is the average interest rate, despite a long period of low interest rates. By comparison, at the end of 2018, the annual percentage rate for conventional installment loans in the private sector was approximately 5.84%. Absolutely, these are only a few euros per month on the repayment credit, but if you are constantly in the dark with the account, there are sizable amounts of money to spend over the year.

Do not consume nest egg prematurely

Even more important than the high running costs is the fact that an exhausted dispensation is no longer available for emergencies. Although some banks tolerate a further overdraft, but this still higher interest or additional fees. And you should not rely on it. The bank can cancel the overdraft at any time. Incidentally, this also applies to the dispo itself. The credit guideline states that the amount of the credit line depends on income and creditworthiness. If the bank finds out that only unemployment benefits are flowing into the account instead of salary payments, it will presumably reduce or terminate the disclosure framework. Existing overdrafts must then be settled promptly.

Only real credit cards help

Only real credit cards help

A second – even free – credit option you may already carry in your pocket, namely your credit card. Insofar as it is a real credit card, the credit is already paid free of charge or with the card fee until the respective billing date. After that, it will be as expensive as the dispo if you want to settle card debts in installments. On the other hand, prepaid cards do not help. You must first be charged with credit. So, whether a loan is legitimate and offered in combination with a credit card depends on the type of card. Scammers sell worthless prepaid cards with no credit at horrendous prices and conceal that the loan amount awarded at the same time is a separate contract whose realization is by no means guaranteed.

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