Our guide is all about overdrawn accounts. More specifically, we show you what happens if you overdraw your checking account and whether you have to expect negative consequences such as a schufa entry. In addition, we give you various tips on how you can balance your current account again and thus significantly improve your financial situation.
1. Account overdrawn – what happens
There are situations in life when it is unavoidable to overdraw the current account. If, for example, your washing machine breaks down, you urgently need to buy a replacement. If you have not built up financial reserves for such situations, the only option is to go into the red with your current account. But what happens if you overdraw your account??
Account overdrawn with overdraft facility
If you have an overdraft facility on your current account, you do not have to worry about it. An overdraft facility is intended for such situations and you do not have to expect any negative consequences, such as a schufa entry. In addition, you can overdraw your current account with an overdraft facility for as long as you wish.
You should note, however, that you have to pay very high fees if you use your overdraft facility. Depending on the bank, there are overdraft interest rates of up to 14% and this can quickly become expensive. For this reason, it is advisable that you use your overdraft facility only for a short time. If you do not manage over several weeks to balance your current account, then you will find in the 2. Section of our guide different ways how to bring your checking account back into the green numbers.
Account overdrawn without overdraft facility + account overdrawn beyond overdraft facility
It is much more problematic if you do not have an overdraft facility on your current account and the account is overdrawn. The same applies if your current account is in the red beyond the overdraft facility. In this case, not only extremely expensive overdraft interest of up to 18%, you also receive a letter from your bank sent. In the letter the bank asks you to balance the account. If you do not comply with this request, the bank is entitled to close your account. In addition, the bank may close the account with a negative credit rating (schufa).
If you do not have an overdraft facility on your current account and the account is overdrawn or you are in the red with your current account beyond the overdraft facility, you should first remain calm. It is also important that you do not ignore the situation. Often a short phone call with your bank is enough to find a solution. In the phone call you can say, for example, by what date you can balance your current account. Banks are often accommodating in such situations and accept your proposal. In addition, you will find in the next section of our guide 3 different ways how you can balance your account and thus improve your financial situation significantly.
2. Account overdrawn – 3 ways to balance the current account
What can you do if your account is overdrawn?? The first option is to take out an installment loan and balance your account with it. This option is especially useful if your account is in the red for several weeks and you do not manage to balance the account on your own. In addition, it makes sense to take out an installment loan if your current account is in the red by a large amount.
The biggest advantage of balancing the overdrawn account with an installment loan is that an installment loan is many times cheaper. While you have to pay up to 18% interest for the overdraft, you can get a cheap installment loan from an interest rate of less than 3% and save a lot of money. It is also a great advantage that you pay a monthly loan installment with an installment loan. You pay back the credit to the bank until you are debt-free. With an overdraft facility, on the other hand, you do not have to pay a monthly loan installment, and this is a great danger, because it can happen that your account is in the red for months.
Particularly recommended in this context is the installment loan from the bank of scotland . At the bank of scotland you can already get a loan with an interest rate of 1.58%. With this interest rate, the bank of scotland is one of the cheapest credit providers in germany and you save the high cost of an overdraft. Likewise very pleasing is that you can arrange the installment loan of the bank of scotland very flexibly. For example, you can choose a term of 24 to 84 months and thus adjust the amount of the monthly loan installment to your needs. The same applies to the amount of credit. Here, too, the bank of scotland offers with a loan amount of 3.000 to 50.000 EUR a lot of flexibility.
You need a loan amount under 3.000 EUR, because your account is in the negative with a smaller sum? This is also not a problem. With the installment credit of the bank of scotland are at any time free special repayments possible. After the loan has been paid out, you can pay the amount you do not need into the loan account. This shortens the credit period and you have exactly the right amount to balance your current account.
As you can see, bank of scotland installment loan is a very good choice when your account is overdrawn. You profit from a very favorable interest rate and save thereby under the line a quantity money. In addition, the offer convinces with a lot of flexibility and thanks to the fast processing, the payment is made in most cases within 48 hours to your checking account. The fact that the installment loan of the bank of scotland is a very good choice is also confirmed by the business channel n-tv with the award for the best installment loan. Secure now the favorable installment credit of the bank of scotland and avoid so expensive overdraft interests.
Installment loan from bank of scotland
Very favorable interest rate from 1.58
Credit period from 24 to 84 months
Free special repayments at any time possible
Fast processing and payment within 48 hours
Multiple award-winning test winner
To the credit of the bank of scotland
Another very good way to balance your current account is to use the overdraft facility of a cheaper bank. This option is useful if your own bank charges high overdraft interest or if you do not get an overdraft facility from your bank. Due to the more favorable overdraft facility, which you use at another bank, you have a large monthly savings, which you can use to balance your overdrawn current account. Another advantage is that you do not have to change banks. You simply open a second current account at another bank and use the more favorable overdraft facility from this account.
The comdirect current account is particularly well suited for this variant . The current account of comdirect is permanently free of charge. This means that even if no monthly money is received on the comdirect current account, you do not have to pay any account maintenance fees. In addition, comdirect offers one of the most favorable overdraft facilities in germany, with an interest rate of 6.5%, and you do not have to have any incoming salary on your comdirect checking account for an overdraft facility to be made available to you.
In summary, the comdirect current account is ideal for balancing your overdrawn current account. The current account of comdirect is permanently free of charge and due to the very favorable overdraft facility of comdirect you have a large monthly savings, which you can use to balance your overdrawn current account.
Comdirect current account
Permanently free current account
Very favorable overdraft facility
Withdraw cash worldwide free of charge
Permanently free credit card if needed
Multiple awards from bankentest and handelsblatt
To the comdirect current account
The third option, if your account is overdrawn, is to make a repayment agreement with your bank. This means that you agree with your bank on a fixed monthly amount, which you pay back until the current account is completely balanced. However, you should only agree on a repayment agreement if there is no other possibility. Because a repatriation agreement is usually reported to schufa and thus you get a negative schufa entry.
The negative schufa entry in turn means that you will no longer receive any creditworthy services from banks. So, for example, you can no longer get an overdraft facility or take out an installment loan. In addition, a negative schufa entry also has consequences if you want to rent an apartment, for example. Often when renting an apartment, your credit rating (schufa) is checked and if you have a negative schufa entry, renting is not possible. As you can see, a negative schufa entry has many consequences and for this reason you should only conclude a recovery agreement if there is no other way to balance your current account.
3. Account overdrawn – summary and conclusion
To conclude our guide, we summarize the most important information on the subject of account overdrawn once again. It is absolutely unproblematic to overdraw the current account if you have an overdraft facility. However, you should overdraw your current account with an overdraft facility only for a short time, as high costs are incurred. If you overdraw your current account and have no overdraft facility or your current account is over the overdraft facility in the minus, then you should act urgently, because in the worst case the bank will terminate your current account.
Since an overdraft is associated with high costs, it is worthwhile to balance the current account with an installment loan. An installment credit is clearly more favorable and you save thereby a quantity money. Another sensible way to balance the current account is to use the overdraft facility of a more favorable bank. However, you should only make use of a repayment agreement in an absolute emergency, as this can result in a negative schufa entry.
We hope we could answer all your questions in our guidebook. If you still have any questions, you can always contact us via our contact form. We are looking forward to your message and will answer your request as soon as possible.