But be careful, this does not apply to all offers. For example, the interest rates for the overdraft facility are very high for some current account providers. Consumer advocates have been criticizing this for years.
None of this type of financing will be cheaper than a small loan
Good Credit and savings banks, in particular, are repeatedly criticized here. However, there are alternatives, especially on the Internet: direct banks are currently advertising with low overdraft rates. With an appropriate credit rating, it is also possible to obtain a credit line. In this case, none of this type of financing will be cheaper than a small loan – and maybe less bureaucratic. Since such a current account often also has other cheaper fees, opening an account can also be a good decision in the long term.
A similar principle applies to credit cards with payment by installments. Different interest rates can also be found here. A comparison shows which providers have correspondingly attractive terms on offer.
On specialized portals such as Good Finance online and free of charge compare credit cards shows what costs can be expected. Here, too, not only the effective interest should be taken into account – but also other fees, such as the annual basic fee or the foreign assignment fee. Would you also like to use the credit card for other purposes?
How to repay? Discipline is required
If a small loan is taken out to finance smaller or larger wishes, there is a clear repayment plan, the loan is paid off monthly. If funding is made using a credit card or checking account, it may take a little more discipline. So that the compensation does not drag out unnecessarily, this type of financing becomes undesirably expensive.
At the same time, however, there is also the opportunity for more flexibility: if the financial situation is correct, the borrowed money can be paid back earlier – which in turn protects the wallet.