A loan despite having a negative balance in the account

There are good times and bad times in life. Times when everything succeeds and we don't have to worry about anything or very few things. And then there are the bad times, in which the financial shoe presses perhaps particularly badly and ensures for the fact that even on the current account ebe prevails. In such times, it is important to keep a cool head, keep an eye on the financial issues and hope for better – good – times.

A loan as an anchor in times of need

Especially when things aren't going quite right financially, credit can be the saving anchor that stops the boat and perhaps steers it back in another direction. For those who use the money from the loan cleverly and invest it in their future will most certainly benefit from it and usher in better times again.

Unfortunately, it is not quite so simple to take out a loan despite minus on the account. Because the banks and savings banks like to be shown the bank statements once in a while and are therefore always well informed about how the prospective loan applicant is doing financially.

Despite all this does not mean that there is no credit at all despite minus in the account. Quite the opposite. All that is required is to be a bit more savvy when borrowing to be able to take advantage of the loan and the benefits that come with it.

What does the overdraft say?

Many account holders have an overdraft hanging from their checking account that still skillfully cushions the first financial squeeze. But the overdraft is quickly exhausted and repayment is not easy, as quite high interest rates are charged for its use. If you react quickly here and take out a loan despite minus on the account, you can save a lot of money.

However, in order for the loan to be implemented despite having a negative balance in your account, a little upfront work is required. So it should be seen that the balance on the account has recovered a little in the last few weeks before taking out the loan. This is important to signal to the bank's officer that the financial squeeze is under control and not getting any worse. In addition, a good reason for borrowing should be ready. If you are struggling financially, you should not take out a loan despite minus on the account to be able to go on vacation, but always invest the money in the settlement of debts and in building the future. The banking houses like to see this and are therefore more willing to grant a loan under these circumstances.

Not with the house bank

If, however, the debts on the account have already solidified and there is no movement towards the positive, then we recommend not taking out the loan with the house bank despite a minus on the account. It has access to all account documents and can therefore also see whether there have already been return debits or even an account garnishment could be pending.

It is better to take out a loan with an independent bank. Some banks, for example, it is sufficient to submit only certificates of employment and a list of expenses for taking out a loan. Bank statements would not have to be presented at all and the minus on the account is not noticeable.

Act in good time

A loan is only possible if the credit rating is still reasonably in order. This means that the debts from the account must not yet have left any traces in the schufa. We therefore recommend that you take out a loan in good time so that you do not end up without a loan. In addition, small debts are always better to get a grip on than if large mountains of debt are accumulated, which hardly allows an overview.

Therefore, it is better to take out a small loan in time to balance the minus on the account than to wait too long and end up slipping into over-indebtedness.