Credit balance and call credit – comparison and information
A credit line is a credit that can be called up at any time after consultation with the principal bank. The borrower has a specific credit limit, which he can access in whole or in part. The credit line is provided indefinitely and does not need to be used. The repayment process is very flexible: in addition to a minimum monthly installment, borrowers can pay at their own discretion at any time.
Repurchased (partial) amounts are again available as credit lines and can be redeemed. In our performance comparison we have compiled for you selected offers for low-interest frame loans: Lenders: Credit intermediaries: In most cases, framework loans are provided indefinitely. Dara? In the case of (seldom offered) framework loans without monetary minimum repayment, a period of 3 to 5 years is common, followed by repayment.
Standard market lines of credit offer the borrower credit lines between EUR 2,500 and EUR 60,000. The borrower can ensure that the desired amount is transferred to a matched target account. Some credit cards are also connected with credit cards. Access to the credit line is then also possible through cashless payments to payment systems or cash at machines.
The interest rate on the frame loan is variable.
The credit line becomes more expensive the further the credit line is utilized. Decisive are then the credit bureau industry value and the monthly net income. However, most frame-rate loans bear interest rates that are independent of creditworthiness. The majority of framework loans on the market are free of charge. Frame Loans with Distribution Fees significantly reduce the flexibility advantage, as the effective interest rate is very high in case of a quick eradication.
Credit lines are available only with good payment history. Although most of the services offered are aimed at employees and employees, the self-employed and freelancers can also obtain a line of credit. For frame loans there is no fixed interest rate. If an increase in the reference interest rate is not used to increase the interest rate, this can be offset against actually required interest rate reductions at a later date.
For most framework loans, a minimum repayment per month is decided. Subsequently, the borrower must reimburse either a certain amount of the loan amount due on the transaction or the total credit line. In Germany, there are hardly any credit lines that do not have to be used for a certain period of time (“usually 3-5 years”). By the expiry of the period of grace or until the first time the credit limit is reached or exceeded, the borrower will not have to pay either interest or capital.
Special repayments are also possible without registration.
Credit lines are not linked to a specific purpose. Solely the fact that lines of credit that are expressly used for private purposes should not be used for business purposes. The biggest advantages of Framework Credits are their flexible handling. In contrast to installment loans, borrowers do not enter into any longer-term obligations, which are only imposed with additional administrative costs and often also in the form of a prepayment penalty.
In the case of a framework loan, the settlement of the balance by bank transfer is sufficient. If the credit line acts as a substitute for the overdraft facility, the current account can be changed more easily. Framework loans involve some degree of over-indebtedness. This is particularly the case when the loans are used alongside a bank overdraft facility and the minimum monthly rate is so high that the borrower has no further room for maneuver to reduce the line of credit more quickly.
For whom is a funding line suitable? Frame loans are very adaptable in terms of handling and usage and therefore suitable in principle for all consumers. The loan agreement can also be used as a financial reserve. Frame loans should be used with caution if other regularly used lines are already sufficient. If the current account credit line is used continuously and the use of cards with partial payment functions, an additional credit line can lead to over-indebtedness.
The Borrower should make sure that the credit limit is communicated to the Foundation. The bank learns nothing about the balance of the account and only informs its contractual partners about the credit line granted. The loan application can be made on the internet, by telephone or in written form.