Overdraft Credit

An overdraft credit, known as a “Dispokredit” in German, allows you to withdraw more money than you have in your checking account. For instance, if you have 1,000 euros in your account but need to spend 1,200 euros, you can use the overdraft to cover the extra 200 euros.

For residents in Germany and Austria, it’s crucial to understand the terms of the overdraft, as it can come with high interest rates. The bank can revoke the overdraft at any time if you fail to meet repayment conditions. Be mindful that overdrawing should be temporary to avoid accruing significant interest. Relevant sections include §§ 488 ff. BGB.

Related documents on DokBrief:

• Widerspruch gegen Kreditablehnung der Bank — if your credit was denied.