The ING credit line as a favorable alternative to the overdraft facility

The ING framework credit is in principle an overdraft facility, only better!

ING current account and ING framework credit

A current account that receives a regular salary will surprise us at some point with a granted overdraft facility. This is usually done automatically. As a rule of thumb, the amount of the overdraft facility should be based on two or three times the monthly salary receipt. The interest rates are, with a few exceptions, very high.

As a rule, there is no overdraft facility without a monthly salary on the same current account. There is no rule without exception: The ING!

The ING overdraft facility without salary

The ING Dispo you can set up without a regular salary income on the ING current account. In this respect the account differs from those of other banks. But it is not possible without a regular salary. Fixed income is necessary, but it does not have to be transferred to an account of ING. In this case, it is sufficient to submit the last salary certificate. As soon as there is no negative entry of the mysterious Schufa, the Dispo is approved.

The ING framework credit is a better Dispo

In addition to the classic overdraft facility, ING offers another cool loan. The framework loan is a credit line that is set up once and is then available permanently. Similar to an overdraft facility, the credit line can be drawn down flexibly. Interest is only paid on the amount that is actually drawn down. Thus, costs are incurred only when the money is paid out.

The repayment is then as with a normal Dispo: Sometimes so and sometimes so!

Installment loans or framework credit – what is the cheaper alternative??

Internet banks stand out from traditional banks due to interesting fee structures. Here, the online loans stand out with favorable interest rates. The consumer loans are offered as regular installment loans, which have even better conditions as a car loan.

But ING has an interesting product, which bridges the gap between the regular installment loan and a favorable overdraft facility. The ING framework loan is flexible, has no fixed installments and costs less than an overdraft facility. But is the framework loan also better than an installment loan?

ING installment loan or the ING framework loan?

An installment loan is applied for once and is later repaid in fixed monthly installments. Consequently, the installment amount, the term and the interest to be paid are fixed in advance. The advantage of an installment loan is certainly that the interest rate is relatively low, the monthly installment can be planned and the end is foreseeable. But the flexibility is quite limited, because an installment loan you apply for a specific purpose, at a very specific time. This is also the reason why car loans are somewhat cheaper than normal consumer installment loans.

What does the ING credit line cost??

Setting up the ING framework loan is free of charge. Interest only becomes due when used. Because the repayment is flexible, there can be no interest already in the next month. Namely, when you have completely cleared the amount. The interest rate does not depend on creditworthiness. Thus, the flexible money reserve of ING is significantly cheaper than the overdraft facility of other banks. However, an installment loan is usually even cheaper, but not as flexible.

How does the repayment of the framework credit proceed??

The repayment is very flexible. Except for the interest, no monthly payments are required. Of course, the amount must be balanced once. In principle, the framework credit is designed for the long term, so there is no fixed repayment date. One thing is clear: if you do not want to have any open liabilities in the long term, you should balance the amount. Then also no interest is due. The beauty and special feature of the ING framework loan is that the loan amount granted is available again even after it has been fully settled. This can be quite practical! One must always apply for a new installment loan. For this purpose, new proofs of income are required again and again and the creditworthiness is checked.

Who can apply for the flexible money reserve?

In principle, anyone with a regular and fixed income can apply for the credit line.

Without a fixed income, however, things look bad. The framework loan is therefore not granted to the self-employed, students, housewives and people without employment. Almost all freelancers have equally bad cards. However, the classic freelancers, i.e. doctors, lawyers and consulting engineers can apply here. The last two tax assessment notices are accepted as proof of income. The background to this arrangement is that it is to be expected that these occupational groups also have a stable income.

Of course, the Schufa is queried. Who has negative characteristics there, does not need to hope. However, this applies to all serious loans. If everything is in order, nothing stands in the way of the framework loan. Provided that the household calculation (this results from the indication of incomes and expenditures) shows that we can pay the monthly maximum accruing interest, everything is super! Of course, it must be recognizable for the bank that we are able to pay back the loan once. So a little should be left over each month.

Conclusion on the ING credit line

The ING framework loan is a great thing to be financially flexible. Even if we have the framework credit and do not use it, we do not pay a cent. If it is necessary, the money is immediately available within the credit limit. We can move freely within the granted framework. If we have only a part of the credit line, the interest rates are also lower. The framework credit is a great alternative to the expensive overdraft facility. Even for balancing the credit line of a credit card, the framework credit can be worthwhile. The interest rate is significantly lower than that of most revolving credit cards. In principle, the framework credit serves as a credit line for the free ING Visa Card.