Alternative to the overdraft facility or installment credit: The call credit

For unpredictable expenses, which usually still happen at the end of the month when the account is already cleared, many consumers use the expensive overdraft facility (often with double-digit interest rates). An installment loan is also possible for larger sums and investments.

A good alternative for this, which most customers are not aware of, is the so-called on-demand loan or credit line. It is a niche product that is not often offered – partly because the banks earn less from it.

With the call loan, the customer gets the best of two worlds: the flexibility of the overdraft facility and the low interest rate on an installment loan.

The procedure looks like this:

First, a credit account must be opened at a bank. Money can then be called up from this account up to a maximum amount (usually between 10,000 and 50,000 USD). Some banks offer the call credit from as little as one USD. Partial sums or the entire amount can be used at once.

The credit line is of course based on the creditworthiness and monthly income. Some credit institutions also offer on-demand loans to freelancers, traders and the self-employed.

The repayment is then made in small monthly installments or through irregular repayments. The entire amount can also be repaid in one go without having to accept prepayment penalties as with the installment loan.

Another advantage of the call credit is the comparatively low interest rate, which in the best case is around 6 percent at the installment loan level. The interest rate is variable and can change monthly.

Comparison of call credits

Comparison of call credits

As with all other loans, a detailed comparison of the offers should be made before taking up. In addition to the maximum loan amount and, of course, the amount of interest, the call credits can also differ in terms of repayment. You should also make sure that interest only accrues on the amount actually used and not on the maximum amount. Some banks also accept that repayment can be paused or started later.

This form of credit is offered by a number of branch banks, but also by direct banks. The savings banks, for example, require a current account in their own house – this is not the case with most direct and private banks.

The annual percentage rate should be used as a comparison value between the offers and any installment loans.

When comparing, you should also note any processing fees or disposal fees. These can eat up the interest advantages again. Therefore, calculate the costs of the providers against each other for your concrete expected situation before you decide on the best call credit for yourself.



The call credit is – as tempting as it sounds – of course not free money, but must be repaid sooner or later. The corresponding consumer discipline is also required here. Since the call credit is in a separate account, it is not – or only to a small extent – automatically repaid. For interest-rate repayments, the borrower must actively approach the bank and make special repayments. Even if interest rates are raised, it is up to the consumer to adjust the monthly repayment if necessary. However, this should be as high as possible so that you can repay the borrowed money quickly, keep interest rates low and the loan does not accustom you to a higher standard of living.

Loan despite credit bureau through guarantor

If there are negative characteristics in the Credit Bureau, such as references to open invoices or loans or insurance that were not or are not served on time, this fact is popularly referred to as negative Credit Bureau. The financial expert, on the other hand, describes this as poor creditworthiness or poor score value. As a result, it can be assumed that a borrower with a negative Credit Bureau has little chance of getting a loan. Because no German bank grants a loan under such conditions because the default risk is far too high.

In such a case, you can usually only find offers that do not sound serious and promise a loan in all situations. Anyone who is in need of money is in need of such offers and is surprised if there is either no credit at all or only a credit that offers very bad conditions.

It is relatively easy to take out a serious and cheap loan even with a negative Credit Bureau. Namely whenever a loan is sought through guarantors despite Credit Bureau.

This is how the guarantor affects borrowing

This is how the guarantor affects borrowing

If you have problems with Credit Bureau and therefore are looking for a loan despite Credit Bureau through guarantors, you will find out relatively quickly that a good solvent guarantor can do a lot for you. If the guarantor brings an impeccable Credit Bureau with him and on top of that he has a fixed and relatively high income, he flows into the borrowing just like you. The bank also calculates the guarantor’s creditworthiness and adds it to your creditworthiness. If this results in a value that speaks in favor of a loan, you can take out a loan with Credit Bureau through guarantors without major restrictions. And this even on excellent terms.

What does a guarantee look like?

What does a guarantee look like?

If you find someone to guarantee you a loan, you can count yourself lucky. Because the guarantor has a great responsibility, which can be particularly “painful” if you, as a borrower, no longer meet the installment payments. Then the bank turns to the guarantor and asks him the outstanding loan amount. Either as a total amount, since the loan contract has already been canceled due to the lack of payment, or as a monthly payment in installments, which the guarantor really has to stick to. If he is unable to service the bank, he becomes a debtor like the borrower and can expect to be enforced. Since the guarantor is liable with all of his private wealth and income, this execution can lead to his own existence being threatened.

Therefore, think very carefully in advance whether you can afford a loan from a guarantor despite Credit Bureau and who you can trust with the difficult task of guaranteeing. Always keep in mind that in the event of payment defaults, you not only get your guarantor in trouble.

What are the advantages of the guarantee?

What are the advantages of the guarantee?

If you can afford a loan from a guarantor despite Credit Bureau and have found a good guarantor, the bank will definitely grant you a small loan. You will probably not be able to take out large amounts of credit or special loans such as a real estate loan with a guarantor. Because your own negative Credit Bureau is still in the room, which causes the bank to only offer loans with small loan amounts and short terms.

Always adapt your wishes and ideas to your overall situation and you will find good loan offers. Always base your monthly payments on your income and make sure that there is enough capital available for repayment.

By the way: If the guarantor is not sufficient for borrowing, you can try to turn the guarantor into a second borrower. The tasks and responsibilities that the second borrower has adapt to the tasks and responsibilities of the guarantor. However, two borrowers are then in the contract, which makes the banks even mild.

Credit consolidation – what to look for?

Loan consolidation is a popular way to get out of the financial hole. The purpose of loan consolidation is to reduce your monthly financial liabilities and spread them over time.

Unfortunately, by acting hastily and deciding without a thorough cost analysis, combining loans, borrowings, and installments into one debt can harm us. What to look for when consolidating a loan?

Credit consolidation – details matter

Credit consolidation - details matter

Credit consolidation is a kind of lifebuoy for people who are unable to meet their monthly commitments to financial institutions. When signing a consolidation agreement with the bank, calculate not only the monthly cost of the loan but above all its total cost.

It is often found that the commission and interest rate are the source of very high fees. Importantly, it is worth considering insurance options, early repayment options or the option of extending the loan. Additional options can often affect the borrower’s fees.

Choose wisely


Before you decide to consolidate loans, it is worth getting acquainted with the offer of various banks in detail. Whether a given offer will be beneficial for us in the long term depends on many factors.

To make sure that your consolidated loan will not be a source of unnecessary costs, it is worth directing your steps to a credit brokerage company. Experienced advisers will help you choose the best option.

Find a variant suited to your possibilities


Loan consolidation can take place under different conditions. The interest rate and other important aspects depend on the individual offer of each bank.

To be sure that combining your debts into one loan will be beneficial in the long term, it is worth getting acquainted with the banks’ offer in detail. People who do not have sufficient financial knowledge should consult with advisers who will dispel any doubts and present the best solution.

Many consumers believes in a credit without Credit Bureau information

Many consumers have the problem that due to payment difficulties or omissions in paying bills, a negative entry in Credit Bureau makes life extremely difficult. It is often thought that this entry is no longer a problem but only becomes problematic if a loan is to be taken out. But it also proves to be a hindrance if a new telephone contract is agreed, the credit card is applied for or a purchase is made on account. This and much more is not possible with a negative Credit Bureau.

However, while there are alternatives for purchase on account or for the new telephone contract, it looks less favorable when taking out a loan. Because every bank in Germany, no matter how aggressively it vies for customers, will ask Credit Bureau before granting a loan. And if this query shows negative entries, the loan can be deleted directly from the wish list. Because it is simply not possible.

Nevertheless, there are many consumers who believe in a credit without Credit Bureau information. Those who have already seen advertising or heard from friends that there are such loans. And it is true that there is a credit without Credit Bureau information. However, the way there is a bit difficult and the conditions around the loan can not always be described as optimal.

Here is the credit without Credit Bureau information

Here is the credit without Credit Bureau information

To be able to take out a loan without Credit Bureau information, you have to venture abroad. Even if it is quite simple over the Internet. Only foreign banks grant a loan without asking Credit Bureau, because they have no access to Credit Bureau data, which is only available to German companies. For the borrower, this means that he does not have to prove his creditworthiness with Credit Bureau, but must provide other security for the borrowing. Among other things, a very good income, which justifies borrowing.

Foreign banks that grant credit to German citizens without a Credit Bureau can mainly be found in the Principality of Liechtenstein. An advantage is the fact that German is spoken in Liechtenstein and the communication should therefore not prove to be problematic. On the other hand, it is disadvantageous that the banks can generally only be contacted via the Internet and the borrowing process can therefore be somewhat slow. An instant loan with an immediate payment is therefore not possible.

Loan interest

Loan interest

To this end, prospective creditors can count on sufficient information about the loan on the providers’ websites. There you will not only learn that loans are offered for $ 3,500 and $ 5,000. All costs including interest on the loan are also named. And this before you apply. This has the advantage that as an interested party you can immediately see which offer is being made and whether this offer can run in accordance with your own plans.

One quickly realizes that there is a loan without asking Credit Bureau, but that this “service” also has to be paid with high interest rates. Because a foreign loan, as such loans are often called, comes with an interest rate of at least 11 percent. The installments are paid over 40 months. Repayment often begins in the month after next after borrowing.

The borrowing process is carried out by post and is therefore discreet. The money will only be transferred to a reference account. There is no Credit Bureau entry. In order to be eligible for a loan, a fixed income must be proven. The self-employed and self-employed as well as pensioners cannot benefit from such loans. A declaration must also be signed. With this declaration, the bank is allowed to seize the income if it is not properly repaid.