It is not uncommon for consumers to have multiple loans to service. Just think of real estate financing that has to be repaid over many years. Other credit requests may arise during this credit period. Very mundane things like a washing machine have to be replaced, just like the old stove no longer does. If the budget gives scope for a smaller loan, the situation arises to take out a loan despite existing loans.
Generally, the loan seeker’s budget comes before the borrowing. All income and expenditure should be compared here; if there is still some leeway from the remaining amount, a loan can be taken out despite existing loans. Those who have their expenses under control and plan a loan as a precaution will not throw an unexpected unemployment or a serious illness off the financial path.
Experts advise that a surplus of income should not be used entirely, but only a third. The rest should be put aside so that there is always a small financial buffer. Then the defective washing machine can be paid for with this small buffer, no loan has to be taken out despite existing loans.
Anyone who fully exploits their financial scope will sooner or later get around a loan despite existing loans. If the customer can still afford a loan, this is not a problem, especially since there are cheaper loans than ever. If the household bill shows that things are working out and there is nothing left, the loan seeker should think twice about taking out an additional loan despite existing loans.
If the loan is used for debt restructuring despite existing loans, the situation is different again. In most cases, debt rescheduling indicates that you have overextended. The installments are depressing and can hardly be paid monthly. However, you should only make a debt rescheduling if the bottom line is savings. Think of lower rates with a longer term. But debt rescheduling can also be carried out if the loan seeker wants to use the current low interest rate phase and wants to replace an old, expensive loan.
Anyone looking for a loan despite existing loans must know that banks check the creditworthiness of the customer. If the income is in good proportion to the loan request and the Credit Bureau is free of negative entries, then the loan approval looks good. If an open-ended employment contract is then submitted, the loan is virtually approved. But not all loan seekers have such a good starting point for a loan. The loan seeker should know about income that, in the best case scenario, it should be significantly higher than expenditure.
The customer must be of legal age to receive a loan despite existing loans and must be resident in Germany. The loan seeker should know that not only the age of majority, but also the old age of a customer is crucial. Many loan seekers over the age of 60 can only get a loan under difficult conditions.
Which bank the customer would like to take out a loan despite existing loans is ultimately up to him. He can go to his house bank and check the conditions there. But he can make it easy for himself and apply for a loan online. Experience has shown that conditions at direct banks are cheaper than branch banks anyway. With a credit comparison, the customer can choose a cheap provider and apply for a loan across the comparison.
Before the loan is applied for, the loan amount should be fixed. The customer should always bear in mind that he already has to service loans, after all, he doesn’t want to overpay himself financially. There should be as much credit as necessary and as much credit as necessary.
If you have decided to take out a larger loan, you should, if it is feasible, combine your other loans into one. In the case of real estate financing, increasing the loan amount is not always recommended. The customer should definitely keep an eye on this financing when taking out a new loan.
The special repayment
If you apply for a new loan, you should definitely make sure that possible free special repayments are included in the loan contract, which makes it possible to redeem a loan early. Not all banks offer these, but they often have the better interest rate. But free special repayments are good for the customer, who expects premiums or special payments that he could pay into his loan every year. If he makes these special payments without them being in the loan agreement, the bank can request early repayment of early repayment. This does not apply if the special repayment is entered.
Anyone who has not yet become familiar with the idea of debt restructuring should do some calculations. Perhaps it is cheaper to do a debt restructuring. Lower rates could increase the financial scope, you could afford more. If the customer does not immediately find a favorable debt rescheduling, he should wait until he receives a better loan offer.
What to do if your credit rating is bad?
If you have a bad credit rating, perhaps through negative entries in your Credit Bureau, you could try to get a Credit Bureau-free loan from abroad. The funds come from a Liechtenstein bank that has a monopoly on Credit Bureau-free loans, it is serious and transparent.
However, it places strict requirements on its customers. The income must be so high that it is above the garnishment exemption limit. It must have an attachable portion of at least 80.00 dollars. An example: a single person must earn a net 1,160 dollars so that they can show the attachable portion of 80.00 dollars. Credit Bureau does not play a role in these loans, and the loan is not entered.
As with other loans, you must be of legal age and reside in Germany. Permanent employment is very important. Customers who are unemployed or have a fixed-term contract do not receive this credit. The loan amounts also have a special feature, in most cases there are only two amounts, one 3,500 dollars and 5,000 dollars depending on the credit rating. The term is 40 months.