Your desire for a loan despite existing loans is legitimate and widespread. Serving multiple loan obligations at the same time is not a special case in German households.
Nevertheless, questions arise about the granting of additional loans. Can an additional loan be approved? What are the hurdles to lending and how to avoid them? Our financial advisor will guide you safely to the additional loan, provided that you can actually afford the loan.
Credit despite existing loans – not a special case but everyday
A loan in spite of existing loans sounds at first glance like excessive consumer desires and endless debt. Following the example of the Swabian housewife, savings are made first, then money is spent. But things are not that simple. The typical combination between a current account and a credit card already results in lending despite existing loans. Not everyone who overdraws his checking account from time to time and also pays by credit card is by no means an irresponsible person.
Entering and complying with different payment obligations is a matter of course every day. In almost all households, the short-term loan is used together with an installment loan. For example, the vast majority of all vehicle owners finance vehicle purchases with installment loans. Despite a loan to buy a car, life goes on. Cash is to be abolished, and most are already refueling with plastic money. In the case of credit card payment, billed once a month in full, the additional credit use is even free of financing costs.
If the combination of several installment loan obligations were a problem, the mail order business with house builders could not generate sales for the first thirty years. Credit in spite of existing loans, regardless of whether installment loan, credit line, mortgage loan or overdraft facility, is commonplace. If these possibilities did not exist, the western economic system would collapse. Even the Cream Bank is pushing borrowers with its interest rate policy to prefinance consumption as much as possible and not to save first.
Multiple indebtedness – note important key points
Nevertheless, a loan granted is of course not a gift. Loans are the anticipated possibility of consumption, the final payment of which can only be worked out in the future. Every loan has to be paid. Credit institutions no longer approve the desired loan despite existing loans if the secure repayment ability is in question. Each borrower has a given credit line based on income and job security. Within these limits, he can enter into almost any number of loan commitments.
Determine the possible credit volume, the attachable share of income, the general payment behavior, living conditions and the choice of employer. All criteria are summarized in the score, according to which the majority of credit institutions measure their creditworthiness for lending. The budget invoice submitted with the loan application proves that there is sufficient money to pay in installments above the seizure limits and existing payment obligations.
However, there can also be problems with the approval within the personal credit line. A loan refusal is practically always to be expected if an additional consumer loan is applied for from the same loan provider without first repaying the first installment loan. In this case, some credit institutions offer to increase the first loan. Alternatively, if the creditworthiness is sufficient, debt can be rescheduled or another provider takes over the financing.
Multiple indebtedness – when does your personal credit rating suffer immediately?
Satisfying multiple loan commitments is no reason to consider personal credit rating as poor. However, only if all payment obligations – not just current loans – are actually met on time and in full. Creditworthiness suddenly suffers if the debtor does not keep his promises.
People handle their creditworthiness with gross negligence, and they always pay the bills only after a reminder. A nicely worded reminder is not just a gentle request to adhere to a payment agreement. Every reminder is the first step to lasting consequences. Anyone who warns for a long time does not give up calm at some point, but reports the delay in payment to Credit Bureau.
In this case, the regular loan would no longer be expected for at least three years despite existing loans. The Credit Bureau will only delete the entry after three years. In the bank’s score, which simply deletes information once it has been recorded, it can mean the automatic loan rejection for an indefinite period. May data protectionists cry out and insist on deletion, to whom a lender grants a loan, the money house always decides for itself. Without giving reasons, the bank may refuse any financing request.
Credit despite existing loans – for difficult cases
Risk financers solve difficult cases for additional credit approval. Possible providers would be credit institutions such as those of Lite Bank or private lenders. A bank’s risk credit barely lives up to its name. Special financers are not allowed to take real credit risks, as they did before the USD crisis.
The loan, in spite of a bank’s existing loans, can be approved if the credit check by hand invalidates the bad score. In addition, debt rescheduling and loan consolidation offer additional scope with limited creditworthiness.
The alternative we recommend to a bank’s risk loan is that of private lenders. A loan in spite of existing loans from private customers is still possible even if risk financiers are out of business. We recommend the credit portal Good Finance for contacting private investors in a reputable setting.