Where does the shoe press? Is it a short-term liquidity injection? An additional installment loan or debt restructuring?
Use authentic information. Despite existing loans, additional funding is almost never ruled out. We have put together for you what matters, how you can improve your credit opportunities.
Credit despite credit – always difficult?
Nobody would like to take out a loan despite a loan. Knowing existing loan commitments still unpaid, but starting a new loan project anyway feels wrong. It causes a queasy feeling in the stomach area for most people. Internally, everyone asks the questions: “Do I get an additional loan at all? Can I continue to meet all payment obligations? ”
Most prospective creditors do not have to fear massive problems in getting an additional loan at all. Serving more than just one payment obligation per month is part of everyday life for most households. Run in parallel – the overdraft facility, the car loan, a no installment loan for purchases and, in addition, often also a mortgage loan. In addition, there are often purchases on account and, of course, rent and additional costs.
In principle, credit in spite of credit simply falls into the “another payment obligation” category among many. This is exactly how credit institutions see it when evaluating the credit request. Refusing the additional loan would be as pointless as prohibiting someone from taking out five additional insurance policies. – Provided the borrower can demonstrably afford his loan, of course not otherwise.
Impact of existing loans on creditworthiness
Credit institutions require a regular credit bureau excerpt to grant regular loans. In addition, a firm, secure job subject to social security contributions with a net income above the attachment limit. A budget surplus calculation is included with every loan application. It lists all credit-related income and expenses. The bottom line is a decent budget surplus.
Old loans have hardly any negative influence on the score, in order to assess the sufficient creditworthiness for credit despite credit. – Always provided that the borrower continues to meet all of its payment obligations as agreed and on time and to the agreed extent. The impact of a move, an insecure payer as an employer, or belonging to a weak comparison group is much greater.
When does it become problematic?
Every credit institution is obliged to only grant secure loans to a much greater extent than before. A loan is secure if the borrower can afford to make his monthly payment on a permanent basis. In addition, all “general” credit risks (health, job security, income security, …) are within the “normal framework”. If the test program or the clerk identifies significant risks, lending is immediately at risk.
Auditors are obliged to take additional measures to safeguard the identifiable risk or to reject the credit request. Borrowers have scope for additional credit protection through joint application with a co-partner. A loan with a guarantor or with a co-applicant could be considered. Regular loans in spite of current loans remain almost always possible due to the liability of a second person.
Valuable property security offers another alternative. Owners of a paid property almost always have easy access to desired loans. The property represents real property that the bank could access if necessary. With regard to additional credit despite credit, the positive household bill becomes much easier. Because there is no obligation to pay rent, the surplus is secure, even with a small income.
Credit problems – loans despite loans that are already running
Not everyone has a paid house to secure their loan or want a guarantor to involve in a loan transaction. If additional installment loans become problematic despite the current old loans, there are two alternatives without additional collateral. It would be possible to get installment loan from another loan provider. Not every credit institution rates installment loans according to exactly the same criteria.
The second alternative would be to change the loan model. If the money was only needed for a short time, short-term loans offer ways out of the liquidity squeeze. Short-term credit is valued under other guidelines. The requirements for borrowers with loans despite loans as short-term loans are significantly lower. The loan may be less secure because the lender is not committed in the long term and gets his money back quickly.
In addition, he receives a fair risk equalization through the up to five times higher interest rates for short-term loans, such as the overdraft facility. If the overdraft facility has already been exhausted, an external provider specializing in short-term loans could be the right contact. One of the big names in this business is Vexcash based in Berlin. Short-term loans between $ 100 and a maximum of $ 5000 are offered. The term varies between 30 days and 6 months.
Installment loan despite existing loans – find offers
Installment loan despite existing loans, for example to rescheduling debt despite bad credit bureau, could come from a few special banks or from private. The contact person for the installment loan despite ongoing loans would be classic credit brokers or modern credit brokerage portals. For example, Astro Finance offers access to risk credit via the free credit comparison. – Within the portal the chance for personal installment loan.
Credit despite personal credit is valued according to different guidelines than bank credit. Private investors are considered to be more willing to take risks than banks. It is up to you to decide who you want to grant credit to, and what you value in lending. You don’t have to account to anyone.