Money is fleeting and can be spent very quickly. An unexpected bill or the repair of a vehicle as well as unavoidable necessary purchases, can reduce the supposedly good account balance quickly.
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In such a case, the people usually need a way out very quickly. But it does not always seem straightforward, because for ordinary loans, the time it takes to spend money is often too short or the sums to borrow from relatives or friends are just too high.
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As a way out, the cash advance can be viewed here. This is inevitably always available and can therefore be used immediately. But what is this loan type actually about and how can it be procured in Austria? Here are the key answers to be delivered.
What is a cash advance?
The essential question arises right at the beginning, because many people can not do anything with the term cash advance. It is a loan that is used very often by most people without it being noticed. It is simply the well-known and much-used disposition credit – so to speak, nothing more than an overdraft.
The cash advance is the most frequently used money lending in addition to the normal annuity loans. This is also because the loan is practically already granted when opening the account. However, there must also be a corresponding credit rating and a regular salary is recorded. Only when these basic requirements are met can the appropriate loan be granted. This is limited to a fairly manageable amount, as long as it is an average income. However, with sufficiently high regular coverage, the amounts can also be significantly higher, so that there is enormous room for maneuver on the part of the bank. Therefore, it is always advisable to seek advice on a cash advance in Austria in advance.
Where can a cash advance be obtained?
As a rule, every bank invariably offers a corresponding loan. Anyone who opens a checking account here and has a good credit rating, can already be granted the appropriate disposition when applying. For this purpose, a special form must be completed, because the application takes place in the same procedure as the account opening, but legally requires a separate signature. However, there are other options to get a cash advance.
Probably the most interesting option is the provider Cashpresso. This offers in addition to various financing options and a cash advance of up to 1,500 euros. For this purpose, an appropriate account is opened with the provider, on which the money is credited as a credit. The customer can now use the cash advance of Cashpresso at any time for his purchases. In this way, he does not need to burden his own finances unnecessarily.
The interest rates are at a quite usual level of 14.99 percent. The amounts do not have to be repaid in one piece, however, a minimum rate is required, which must be paid monthly to the account of the provider. The customer has a choice whether to pay at least 5 percent of the outstanding sum or at least 20 euros a month. In this way, repayments can be made according to your own financial resources, which makes Cashpresso very flexible.
Fees or prepayment penalties are sought in vain at Cashpresso. Also, the payout is absolutely free of charge that company finances itself solely on the accrued interest. As a result, the customer receives a high level of transparency and can use his Dispo at will.
The credit requirements for a cash advance in Austria
But what about the credit rating, if you want to apply for a cash advance or want to get it on your account? As a rule, the KSV is checked when the account is opened. This is standard and therefore a necessity for the opening itself. If there are only one or two entries of a negative nature, the account can usually be opened without any problems. However, then a Dispo is usually already failed. This is because the bank has no absolute assurance that the client will repay the amounts due at the end.
However, this does not immediately mean that the cash advance remains locked forever. If there are regular cash receipts with no chargebacks on the account, then another application for such a loan can be made. In some cases, the bank then also offers a disposition credit itself, so that the user can then have more money than actually available. However, these sums are set rather low in the first time. Only when positive behaviors become apparent over time and no debts are made on the account will the amount be raised accordingly. How much time this takes, but can not be said exactly, because the time period for a corresponding test, is different for each Bak.
Can securities be provided for a cash advance?
As a rule, it is not possible to provide collateral for a cash advance in Austria. This is simply due to the nature of the loan amount, as it is always on call and can therefore be used on a daily basis. Therefore, it depends solely on the creditworthiness of the customer, whether he receives such a loan.
However, collateral can already play a role. At the latest, if the customer defaults on payment, the total amount must be paid very quickly. In such a case, material assets can also be used to pay off the debt at the bank. For this purpose, a garnishment agreement can be made with the bank so that the customer settles his debts in this way. However, one should not delay this point too far, because high reminder fees and interest rates can be the result.
This is important to note in the interest rates
However, you should also inform yourself about the interest rates, because they vary from bank to bank. However, this does not usually pose a problem with the definitely increased interest rates. These can still be calculated for normal usage. The so-called overdraft interest rate represents a completely different problem. This can still be a lot higher than is the case with the regular interest rates.
An overdraft rate is a penalty rate that is charged when the amount in the account is used up on the account but money is still spent. The interest rate can be significantly higher and in the range of more than 20 percent. This form of overdraft is the one that most often causes debt through overdraft facilities. From this point, the costs rise rapidly, so quickly lose control.
However, the overdraft amount is not unlimited. As a rule, it is limited to a few hundred euros above the normal amount of disposition, so that money can not be spent indefinitely. This also provides some protection against over-costing a customer.
Payment of a cash loan in Austria
The repayment of the cash loan does not need to be initiated separately. In most cases, the sums are simply paid out of the monthly income. Once the receipt of payment has been determined, the partial amount that makes up the overdraft and the interest on the account will be deducted. In this way, the remaining balance remains and can then be used normally. However, the full amount of disposition is available at this time, so that a further overdraft can begin.
If the income is insufficient to cover the total amount, the repayment of the balance will usually be postponed by one month. However, new debts can be accumulated again during this time. Therefore, in some cases separate payment arrangements must be made with the bank. These can consist for example in the repayment of a smaller amount or be compensated by one-off payments.
In some cases, the loan amount in such cases is also reduced by the bank in order to prevent a debt as a precautionary measure. This means that in the next month, for example, no or only a small amount of money can be borrowed. If the outstanding amounts are then paid, the amount can be raised back to normal. However, this decision is solely at the discretion of the account-managing bank.
Can a cash advance be terminated?
The customer also has the option of terminating a posting at any time. For this purpose, only the dispo agreement must be revoked, which was initially closed with the bank. The termination usually has no deadlines, but is usually active at the end of the month in which the termination was pronounced. Therefore, the disposition is still available during this period.
The bank may also at any time terminate the dispensation if circumstances have occurred which make repayment of the borrowed money less likely. For this purpose, the KSV is checked at regular intervals. Should there be new entries here that cast a negative image on the creditworthiness of the customer, the bank can cancel the cash advance immediately. All outstanding amounts must then be repaid in a monthly period.
If this is not done, the bank will usually send an invoice to the customer. If this is not settled, the same dunning procedure takes place, as is the case with every other payment. Anyone who receives a notice of termination should contact his bank immediately to clarify the reason for and amount of the open subsidies. A hedge is always appropriate in such a case.