An unexpected and temporary invoice flutters into the house. The account is empty, the overdraft facility has been exhausted. The only solution would be a 24 hour payout loan. Advertising at least promises this quick credit. But what is actually behind it, can such a loan be realized?
The history of a credit with a payout in 24 hours
Even if the technical requirements were met to approve a loan with payment in 24 hours, it is not legally possible. Banks are required to check the creditworthiness of the customer and not only the income they mean, but also the Credit Bureau before a loan approval is made. Credit Bureau introduces itself as a credit bureau and collects data that its contractual partners such as banks, telephone companies and mail order companies pass on to them.
It doesn’t just happen that way, it reports a customer’s payment irregularities. An invoice was dunned, the customer does not respond, a legal reminder is issued with the result of a negative entry. The customer should know that not all entries are negative. A credit is entered in the Credit Bureau, a manual contract. As long as the customer pays his installments or liabilities correctly, the entry remains positive.
However, if there are rate shifts, rate suspensions, reminders with attachment or an enforcement notice, the entry becomes negative. The customer’s creditworthiness is ruined, and a loan from a normal bank will then hardly be possible. This is why the Credit Bureau query is so important for banks that they can use it to assess the default risk of a loan.
If the customer now wants a loan with payment in 24 hours, he must first look for a provider who has it in the program. During his search, he will find advertisements that read lightning credits in 30 minutes, loans with lightning transfer or the like. Such a loan cannot be checked and approved in such a fast time. If the customer is considering an online loan, there is a post between the loan approval and the payment.
There is no bank that does not check the creditworthiness of its customer. Therefore, the loan seeker must present proof of salary to prove his income. Some banks also require bank statements. The period is limited to the last three months. The Postident procedure must also be carried out at Swiss Post. A person recognition is thus carried out. With this form and the creditworthiness documents as well as the signed loan agreement, the postal service comes into play.
The bank will carry out the Credit Bureau query itself, but it should also be planned. If the Credit Bureau is clean, no negative entries such as reminders, foreclosures or attachments are noted, a loan with payment can be approved in 24 hours.
The customer can contribute to the speed himself. He ensures that he has all the documents together so that there is no need to inquire and brings them to the post quickly. Most banks also send ready-made credit documents with the loan application, which the customer also sends by post. The longer the customer waits, the longer the loan with payment will take in 24 hours.
Even if the required credit documents are sent away as soon as possible, at least two days must be scheduled before the loan approval is given. After that, the loan will be paid out in 24 hours.
The really quick loan
The customer can quickly have a loan if he uses his overdraft facility. Banks grant their solvent customers a free-standing credit facility. Depending on how high the income is and how regularly it is received, the bank approves up to three net monthly salaries. For example, anyone who earns 3,000 USD net could have a disposition over 9,000 USD.
However, this loan is very expensive, an interest rate of up to 15% is expected. If the credit line granted is now overdrawn, the bank charges another 5% interest. A handsome interest charge. For this reason, the overdraft facility is only intended for short-term use. It is assumed that if it is returned within three months, the overdraft facility would be a good solution.
Many customers use the overdraft facility like an installment loan, some even make a living from it. In this way, more and more debts are accumulated until the bank cancels the overdraft facility or suggests converting it into a payout loan in 24 hours. Customers whose bank requires a high overdraft facility should consider switching banks, as this can save them cash.
The other way to get a loan with payment in 24 hours is to apply for a loan from a branch bank, for example from the house bank. Here, too, the customer should bring all documents to prove his creditworthiness and a valid ID card. The bank checks the Credit Bureau, is it ok and is the income high enough and has been in permanent employment for at least one year, so a loan can be approved immediately.
The customer can receive the money in cash or have it transferred to his account. However, with such a quick loan approval, there will only be a small loan. Pensioners should know that they can also get a loan with a payout in 24 hours if they have not reached the age of 70 and the pension is acceptable. After the loan approval, the payment will then be made to the customer’s account within 24 hours.
The credit rating
But what can the customer do if he has a bad credit rating, for example through negative entries in his Credit Bureau, he will not receive a loan with payment in 24 hours from a conventional bank. The risk of default is too high for the banks, since the Credit Bureau shows that the customer has payment difficulties, they reject the loan.
For this group of people there are Credit Bureau-free loans that can be processed by a credit broker. A serious broker can still find a loan for his customer, especially in difficult cases. However, the customer pays commission to the agent.
The funds come mainly from Liechtenstein and since 2010 Litebank has been the market leader for Credit Bureau-free loans. However, only two loan amounts are approved, one for 3,500 USD and one for 5,000 USD. The loan terms for both loans are 40 months, the interest rate is around 11-12%. The customer should have a sufficiently high income that is above the garnishment exemption limit. He must have a permanent position that is not limited.