Everything you need to know about the bank trust: what is it, how does it work and be worth?
The bank credit is an advance of money that the bank grants to its account holders to have extra liquidity in the event that the balance of your account goes into negative.
Did you go to the bank for a loan and they proposed the opening of a loan? Or have you heard about it and are you curious about how a trusty bank works?
Then you’re in the right place!
Today I want to talk to you about the truste of banking and everything there is to know about this financial instrument that can be help, but at the same time it could prove cheered.
In fact, the bank credit, it can give you more liquidity, but it does not always be convenient and in some cases it proves difficult to manage.
That’s all you need to know about the trust in the bank.
Index
- Get a loan from the best financials
- What does a bank credit mean?
- Banking Fido: How it works
- Banking Fido: who grants it
- Who can get a trust
- How to Get a Banky Account
- How to close a trust
- When a bank credit is revoked
- Is the bank credited to be convenient? How much does it cost?
- Join the jadnews Club. It is free!
What does a bank credit mean?
Sometimes it can happen to find yourself with an uncovered bank. The bank uncovery is when after a month of expenses and payments, you finish the available liquidity, but the bank still gives you the opportunity to pay, for example the mortgage installment, going to create an overdraft.
The discovery in the bank has very high costs and if it happens with constancy to avoid the excessive costs of this situation, you can request a bank credit, but it is not only used to pay a bill or an installment of the mortgage.
The loan can also be granted to the customer for an imminent payment, without requesting a loan or a loan.
So what is the bank credit?
The bank credit is a specific sum (which usually does not exceed 5 thousand euros) that the bank grants to the account holder, in order to allow him to spend more than he can with his liquidity.
This “loan” is given to the account holder, as the bank trusts him and knows that he can repay the discovery of a current account in a short time.
Although this is called a commitment of trust in you by the bank, know that in reality they are not really trusting you as a person.
Their trust comes from a series of guarantees that you can give them as a account holder, for example the salary, the weekly earnings of your work activity, or the possession of a house, etc.
So with the credit the bank does not lend a sum of money, but provides an advance of funds to customers.
The trust in fact can go from active to inactive, as it can be used several times after the return in the positive balance by the customer.
On the other hand, the bank does not trust its customers blindly, but simply knows that it will be able to obtain the payment of the debt in any way.
With this line of credit you do not have to pay the costs of the account overdraft. You only have to pay the interest applied on the amount of credit you used.
Of course, the longer time you take to return from the trust, the higher the interest costs applied.
Banking Fido: How it works
How does a bank credit work? Don’t think of the bank trust as a normal loan or a loan, in fact these are completely different from each other.
In the first case, the bank offers you a sum of borrowed money that you must return according to a specific amortization plan of installments. Committed to paying monthly the amount requested with interest due under the contract stipulated.
The bank loan is a sum of money that allows you to trespass from the current account (up to the limit imposed by the bank), which must be made in the short term.
Let me give you an example:
Every month, take a salary of 2 thousand euros. This month, however, 2 thousand euros is not enough for your expenses, due to an unexpected. Then use 500 euros of your trust to cope with these.
In the period between the trust and the entry of the salary, some interest accumulated on the amount withdrawn. But when the next month you go to pay the salary again, the bank will withdraw from your salary 500 euros.
This of course is just an example, you could also use all the 5 thousand euros of credit, return only 2 thousand euros at the end of the month, and continue to use the credit for your expenses, until you can report the bill back in a positive way.
This last practice, however, is very risky because it risks entering a loop of interest accumulation that would lead the bank to ask for the closure of the trust and the repayment of liquids.
The interest of the bank credit is debited from the current account with an annual, semi-annual or quarterly maturity, depending on the contract. So you won’t be required monthly.
Banking Fido: who grants it
The bank loan is granted only by the bank in which you have an active current account. This implies that you as a account holder have at least a minimum of banking history (i.e. you have already had an active account in a bank, or in the one where you are opening your checking account).
In fact, the trust could also be proposed when you decide to open a current account and credit the salary on this.
So the trust can only be requested where you have a checking account, and is usually given only if you credit one or more salaries. If you have a bank account for a business or professional activity, you can still request a credit on the account you use to pay the proceeds of your work.
Who can get a trust
All account holders who have financial strength may request the Fido. This, as I mentioned, is not only reserved for natural persons, but also for legal persons such as limited liability companies or on a collective name.
The trust cannot be granted to those who do not have a banking history (therefore an account that has been open for at least a year) and to those who have no monthly income (unemployed), or to those who are protested and reported to the CRIF.
These are the only cases in which the bank, not having the guarantee of repayment by the account holder, can refuse to provide the credit. In addition, you should know that the credit institution can choose at its sole discretion whether or not to give the credit.
If you haven’t been a model customer, and you’ve often had economic solvency issues, it will be difficult for you to be granted the trust.
How to Get a Banky Account
How to have a bank credit? The demand for a bank trust is not very difficult. In fact, to ask for a loan in the bank you just need to go to your bank and fill out a form with the economic request for the trust, whose limit is still imposed by the bank.
What are the requirements for having a bank credit?
The credit limit for the credit are 5 thousand euros for personal accounts and 10 thousand euros for the accounts in the name of legal persons.
To accept the application for trust, the bank must check your account. You need to verify that you have made all payments in order and, above all, what your monthly income is and if it is regular income (such as those that could result from a permanent job).
If you need more liquidity, you can always talk to the bank manager to ask if there are any alternative solutions and if in the future you could try to ask for the trust again.
How to close a trust
The credit, once granted by the bank, can provide for both a permanent and fixed-term contract. In both cases you can choose to close the bank account at any time you want it.
How to close a bank credit?
Simple, you will have to go to your bank, ask for the closure of the credit and wait for the interest to be credited to be credited. Finally, you will need to sign a form for the cancellation of the contract.
To close the trust, therefore, it is necessary to have paid the trespassing in the bank and also repay the interest.
When a bank credit is revoked
The bank credit in case of mismanagement can be revoked by the bank. The revocation of the bank credit can take place at any time when the bank notices that the customer is not returning to the debt and continues to use the credit, or when no more payments are made to the current account.
In these cases the bank requires the revocation of the bank credit, but what if you do not have enough money and you can not repay the debt with the bank?
In these cases, the bank to help you re-enter the trust decides to agree with you on a bank credit return plan. This repayment plan provides a loan or a personal loan that will allow you to close the credit and repay the amount with monthly installments.
In severe cases, the bank may choose to close the credit and start debt collection practices.
The forced recovery of the sums is rare, but still a possibility that the bank could adopt at the time when:
- The customer does not show in the bank to the calls.
- You don’t pay anything more about it.
- There is a condition of banking anatocism.
Is the bank credited to be convenient? How much does it cost?
The calculation of interest of the credit is carried out at two different percentages that apply depending on how you use the trust and how much money you spend in addition to those you have available.
Once the sum is required, you will have to pay:
- Fido bank management interest. These are applied every quarter, semester, or annually and predict an interest rate that cannot exceed 0.5% per quarter. The cost is charged whether you use or you do not use the amount granted by the bank.
- Fees of commission of maximum overdraft. This sum is charged to the account holder when an uncovered occurs in addition to the limit granted with the credit. In this case there is a fixed percentage of interest that is applied depending on the bank.
So the trust is convenient?
Given the high interest to request a bank cheers Never a good decision, as the cost of maintaining this amount can be very high.
So for extra expenses, such as buying a car, it is advisable to apply for a loan.
The credit can be agreed in case of liquidity problems for short periods. For example, if you have a period of economic difficulty but know for sure that soon you will get the amount necessary to cover the trust.
So the trust only is convenient in the short term and only if you have certain income to cover the sum “taken” from the bank.
