Individual reasons for changing the bank are many. The Payment Accounts Act sets the rules for banks and savings banks. But how is a change with current credit or an account in the Dispo?
From the cost saving up to the optimized consulting offer the reasons reach, if with the account owner the desire for a change of the credit institute arises. The framework for changing accounts is set by the Payment Accounts Act, which was passed in September 2016. Legislation obliges banks and savings banks to do their utmost to assist customers in switching their current accounts. Nevertheless, many consumers who are willing to switch are reluctant to do so. The reasons are, on the one hand, uncertainties about how to proceed. On the other hand, current credit agreements and / or the utilized overdraft facility raise questions.
Problem-free current account move
When looking for a new house bank, it is recommended to thoroughly research the market offer. Here's how to find out which lending institution comes closest to your individual needs. If the focus is on more favorable conditions, it is advisable to compare the performance of the direct and online banks present on the market. If the aim is to optimize the advisory services offered "on site", it is worthwhile to carry out a service check of the traditional branch banks.
Experience teaches that a temporary dual account is beneficial until all the formalities for conversion have been carried out. As soon as the new EC card with the associated secret numbers and the formalities for online banking have been handed over, the old account can be terminated without risk. This cancellation is possible without notice and free of charge.
Switching accounts with current credit contracts
A change of bank is in principle also possible for account holders with current credit obligations. In this case, when looking for a new house bank, it is necessary to ask whether you could obtain a loan. The new financial institution will make this decision dependent on a credit check. It will ask for proof of income, on the one hand, and obtain a SCHUFA report from the Schutzgemeinschaft fur Allgemeine Kreditsicherung, on the other hand.
Costs may be incurred when "moving" an existing loan. Some credit institutions charge a fee in the event of early termination of accounts. A prepayment penalty in the event of an early loan redemption that differs from the terms of the contract may incur costs on the part of the previous lender in individual cases.
In order to initiate a change as smoothly as possible, it is advisable to inform the new financial institution in good time about the amount of the loan requirement and the desired redemption date of the old loan. An early questioning of the new credit conditions prevents unpleasant surprises. Because the new financial institution is not obliged to take over the existing conditions from the old credit agreement. Here it is important to make clever use of the negotiating leeway that is possible when changing banks.
In principle, the following options are available for credit agreements:
- Continue to maintain the existing loan with the old bank and service it from the new current account
- Transfer of the loan to the new bank.
If the account is in overdraft
Bank customers who claim an overdraft facility on their current account are aware of the high interest rate level. Nevertheless, there is usually interest in the establishment of a "Dispo" when switching financial institution. When switching accounts, the potential customer should already indicate his wish for an overdraft facility in the current account application. As a rule, overdraft facility and its amount depend on the creditworthiness of the new customer.
Often the new credit institution takes over the overdraft facility, which makes a direct redemption in the course of the account change possible. If this is not feasible, the old overdraft facility can be serviced from the new current account until the liabilities are fully redeemed. In order to avoid the associated maintenance of two current accounts, it is advisable for the account holder willing to switch to talk to the financial institutions involved in the switch.
Conclusion and summary schedule
The remarks show that a bank change with current credit obligations and Dispo use is possible. Of great importance is a structured process planning.
It is essentially based on the following four points:
- Select a financial institution and clarify the granting of a loan and overdraft facility.
- If the conditions are acceptable, conclude a loan agreement.
- Close the old account after a short period of parallel current account management.
- Replace any outstanding debts with funds from the new loan agreement.
With the conversion of this project it worked satisfactorily to speak with the two financial institutes involved about plans and desires.