Credit line

The credit line is also known by the terms "overdraft", "available limit" and "line of credit" and denotes the limit up to which overdrafts on the current account are permitted. This term is also used for credit cards and in that case describes the financial limit within which the credit card can be used. The credit line is intended to bridge financial bottlenecks that can arise, for example, shortly before the monthly salary payment.

Using the credit line is not mandatory and should only be done when it is actually necessary. A line of credit can, but does not have to be, used.

Important: Utilised available credit should be repaid to the bank regularly, otherwise high interest costs may be incurred by the borrower. (does not apply to the credit card limit of the credit card).

Although the interest rate is lower than that of the so-called overdraft loan, it is higher than for "classic" loans. For this reason, available credit should only be seen as a kind of emergency cushion and is not suitable for financing expensive purchases such as cars or household furnishings. The credit line can be used again up to the limit. Example: If you have a credit line of 5,000 euros, use 4,500 euros of it in March and repay the sum at the end of the month, you will have the full 5,000 euros available again as a credit limit in April. Particularly advantageous: you only pay interest on the credit line when you use it.

If your current account is in credit, no interest payments are due. Apart from that, a credit line—unlike classic loans—is very flexible and can be terminated by the customer at any time.

In most cases, no fixed contract is signed when a credit line is granted; unless it concerns a larger line of credit with a higher limit.

The interest accrued from using the overdraft facility is usually billed at the end of the quarter.

Under what conditions is a credit line granted? 

In principle, anyone with a regular income can receive a credit line. Most financial institutions, such as banks, check whether the customer's account management has been satisfactory in recent months and whether regular monthly salary deposits are posted. The amount of the credit limit usually depends on the amount of income. For example, someone who can prove a monthly salary of 4,000 euros will receive a higher overdraft facility than someone who only has 2,000 euros per month. The customer's creditworthiness and payment behavior on existing loans also determine whether and to what extent a credit line is granted at the agreed interest rate. Usually a separate security is not necessary for overdraft facilities. In individual cases, however, financial institutions may require collateral for the credit line.\

This often occurs when the customer has little or no income. Valuable items and property often serve as collateral; appointing a solvent guarantor with appropriate creditworthiness is also conceivable. In this way, unemployed people, trainees and other low-income individuals also have the opportunity to obtain the desired credit line. Important: All information about personal income circumstances must be truthful. Otherwise you risk losing the line of credit again or having to pay high penalty interest rates, which can be in the double-digit range.

Favorable credit line with advantageous conditions

Maxda also offers loans tailored to your personal requirements. As one of the largest financial service providers in Germany, we are your contact for loans and mortgage financing.

Thanks to our close cooperation with German and European banks, we are able to offer you the best conditions at the lowest interest rates. We also grant credit lines and loans if you are currently unemployed or have only a low income. In this case, however, the naming of a solvent guarantor is necessary, who will take over your installment payments in an emergency.

This condition serves not only as security for us, but also protects you from financial difficulties.

If you do not want your loan to appear in the Schufa, you can take out a credit without Schufa with us. All workers, employees and civil servants who receive a monthly income of more than 1,070 euros (or name a corresponding guarantor) and are between 18 and 58 years old qualify for the credit without Schufa. Since the desired loan is granted by a foreign bank, no Schufa entry is created.

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Affordable installment loans and mortgage financing

In addition to flexible loans and small loans without Schufa, we also grant larger loans (e.g. installment loans, civil servant loans, mortgage financing) up to an amount of 250,000 euros. Since you can conveniently submit your loan request on the Internet, you not only save money but also a lot of time. After you have submitted your loan request, we will send you all documents and information required to examine your loan request by e-mail and post. Once the signed documents have arrived with us,

we will check your loan application and contact you for further discussions.

The review of the loan application usually takes a few working days; however, for Schufa-free loans the processing time can take a week. If your loan application is approved, we will look for the cheapest loan for you with the best interest rate for you. Because we receive premium conditions from many domestic and foreign banks, we can offer you a particularly favourable offer. If you have questions about taking out a loan or need help filling out the loan agreement, you can call us or arrange a personal appointment. We will be happy to help you realise your loan request quickly and easily. You do not need to fear long waiting times and unnecessary bureaucracy with us. We place great importance on you receiving the money you need promptly and being able to fulfil your heartfelt wishes.

Important information about taking out a loan

As soon as your loan application has been approved, we will transfer the money to you or send it by post if you wish. Important: Please provide both telephone number and e-mail address in your loan request so that we can reach you quickly and easily if we have any questions. If you have questions, problems or suggestions, we are of course available to you at any time. Just call us or write us an e-mail describing your concern.

If desired, we will be happy to arrange a personal consultation in which we will discuss all loan options and conditions with you.

You might also be interested in: The Maxda Kreitkarte.