Credit limit - meaning
When taking out a loan, one question must be clarified quite early on: the amount or framework of the loan. The credit limit (also credit line or credit facility) is determined by several factors and can vary considerably.
The credit limit is the top limit of a loan. It indicates how much money in total is made available to the consumer by the lending institution. The credit limit, i.e. the credit ceiling, is used to determine the risk for the lender. The higher the risk, the lower the credit limit will be set.
Credit limits or credit ceilings are not only known from loans. A credit limit is also set for credit cards or an overdraft facility (current account). It similarly indicates which amount is available and can be drawn upon. If the credit limit is zero, no overdraft can be used. A current account can have a different limit than the associated credit card. In the event of an overdraft on the credit card, high costs are incurred. For a current account, a line of credit (Kontokorrentkredit) is also possible. This is provided by the bank when a limited overdraft is necessary. A line of credit can therefore bridge short-term liquidity shortages.
With us, loans between 3,000 and 250,000 euros are granted. These are always general-purpose loans that are not tied to any specific investment or expense and are therefore available for free use. As a borrower, you are therefore not obliged to inform us of the reason for taking out the loan. It is important in this context that we have limited our credit limit for a credit without Schufa to 5,000 euros. The reason for this is the fact that these loans are concluded with banks abroad and larger sums are not permitted there.
If you are interested in such a loan, you should bear this in mind. We will gladly advise you on this topic and make you an attractive offer.
How is a credit limit determined?
The credit limit or credit line depends, on the one hand, on your personal desired loan amount. How high should the loan you take out be? You tell us your preferred loan amount and we will check whether this can be arranged in your case.
On the other hand, the limit depends on the conditions you bring to the loan. As already mentioned, loans without Schufa are limited to 3,500 euros. Installment loans with a Schufa inquiry and corresponding creditworthiness can be granted up to 250,000 euros, depending on what collateral you can provide for the loan. The creditworthiness check with Schufa by the bank can help the borrower to have a loan amount approved. However, if the creditworthiness is poor, it can also be denied. With poor creditworthiness, the lending institution lacks the necessary security to be sure the borrower will be able to repay the amount.
Before signing the contract, we will mark the credit limit or the available limit very precisely and will gladly discuss it with you personally. This gives you the opportunity to prepare for the amount of the credit limit or, if necessary, to look for further collateral or other alternatives to expand the available limit. We are confident that we can offer you a fair and realistic offer at all times.
Why take out a loan?
A loan is requested whenever the consumer's liquidity is no longer sufficient. Whether because they want to purchase something and lack the money required, or because debts have accumulated that cannot be managed within a reasonable time by their own means. The reasons for taking out a loan can be as varied as the loans and the credit limit itself.
We take care of every loan application and try to provide you with a suitable offer. With us you will find a variety of loans that can be optimally adapted to your needs. From a simple installment loan to a loan without Schufa, everything is possible. Our competent team will be happy to advise you and show you the possibilities in the field of lending.
How does the application work?
Applying for a loan including the credit limit is quite simple and requires no prior knowledge. Just fill out our online form regarding your desired loan. Please make sure that all information is truthful. Once you have submitted the form, we will process your loan inquiry as quickly as possible. There are no costs for you for the inquiry and processing.
Once the online inquiry has been received by us, you will receive your documents by e-mail and by post with instructions on the next steps. In order to finally assess your application, you must return it to us completed and signed. Please also note your e-mail address and telephone number on the application so that we can contact you directly if necessary.
The loan application, which must be submitted in its original form, must also be accompanied by a legible copy or even the original of the last pay slip or salary statement. If you send us an original payslip, you will receive it back after the application. Once all documents have been received by us, they will be checked for correctness and completeness and a decision will be made about the loan. The credit limit will be determined as well as the amount of the installments and thus the term of the loan.
Our loan agreements are all transparent and clearly structured so that you can see exactly how your loan is composed without much effort and, above all, without specialist knowledge. Finally, the loan amount is paid out. We transfer the money to an account you specify in the shortest possible time. It will then be available to you within one to three working days.