How to use the overdraft?

In our country the service is an overdraft started practicing recently. Now she has many rumors, though, most have not learned to distinguish it from the traditional bank loan. Meanwhile, the difference is obvious. Overdraft - a so-called short-term loan when the bank lends money to proven clients, with a very short period of time. The idea is that the credit institution shall overruns (from the English. Overdraft - «over the planned"), after which a person can take much more money than he has in his account. However, in the subsequent whole amount of money that was borrowed from the bank, is paid by the borrower at a time. And this is done automatically when the customer card the money comes from. Typically, the amount of overdraft is set in the amount of regular income to the account, at least, does not exceed it. It is not hard to guess that the most widely received among the overdraft payroll cards, since the completion of accounts for such a plastic is at least 1-2 times a month. Overdraft and credit - Overdraft is granted only to those customers who have accounts and permanent income on it. For comparison, this is not a prerequisite for those wishing to take the credit - interest rate on overdraft is usually higher than the loan - Repayment of ovedraftu automatically, while the loan is repaid in installments - if in the case of the credit goes to the man himself bank, with regard to the overdraft, there is often a financial institution chooses for himself a client. Pros and cons have an overdraft, as with any other banking service has its pluses and minuses. Thus, among the advantages you can select an unlimited number of credits. For example, repay debt, the customer can use ovedraftom second time, and after repayment of the second loan, take the third, etc. In addition, to obtain an overdraft is not required to prove its solvency or provide collateral sufficient personal guarantee of the borrower. Among the disadvantages - limited time frame. Typically, maturities ranging from several days to 3 months. Also, do not tempt many lump-sum payment, because a large amount of direct hits on the pocket. And remember that if overdraft charges may be hidden: in the conduct of operations on the account (monthly) fee for account maintenance (monthly), withdrawals from ATMs (0,3% -0,7% of the total), etc. . Your order to get an overdraft at the bank, which you are a client, you must gather the following documents: application form (fill in the bank) loan application overdraft; passport passport, driver's license or tax ID number. Remember, the overdraft can claim only those bank customers who are served in it for the cash-settlement account at least the last 6 months. Moreover, any outstanding claims on this account, they should not have. Among other requirements of an individual bank may be: the presence of a registration in the place where the credit institution, the presence of a certain seniority, as well as the absence of any arrears to the Bank. With regard to the contract, then he usually concluded for a period of 3 to 12 months and then may be extended. Interest rate in this case is about 20-40% per annum (depending on the loan amount and the unit vector of an individual bank). But in the case of late payment, the customer threatened rather stringent penalties. In addition, the bank has the right to cut the credit limit or even terminate the contract. Who is suitable? Overdraft service is convenient for the category of people who often need urgent money. In this case, the bank actually provides invaluable support. However, as practice shows, in this case and the substantial negative Overdraft: this service is quickly attracted to a man, developing a sense of dependence to external assistance.