Many people seek a loan despite existing loans. This can have different reasons. Often there is a desire to replace an older loan, to combine several loans into a single loan or to take out a lower-interest loan. In many cases, there is also a need for funding for larger consumer goods, repairs or other items that can not be funded from current revenues or from their own savings.
The question of whether a loan can be approved despite existing loans, can not be answered unambiguously. This depends on the requirements. If you have a medium or higher income and who the Credit Bureau information is okay with, it will be much easier than many other people to find a suitable loan.
The banks and savings banks have clear rules on who you can grant credit to. Here, income plays a prominent role. If your income is sufficiently high, you are free to borrow as many as you like. The bank will set a limit where it can no longer be guaranteed that you will be able to pay regular loan installments from your income. The minimum requirement is an income above the attachment exemption limit.
Many banks do not lend their loans as self-employed or freelancers. Other people who are not employed and have a permanent employment contract have significant difficulties in getting a loan. This is true not only in the event that they seek a loan despite existing loans but also for every other loan.
It has a negative effect if, for some reason, an existing loan has already led to a negative Credit Bureau entry. The same applies if there are other reasons for one or more negative Credit Bureau entries. If you opt for a foreign loan, the Credit Bureau property does not matter. This also applies to a personal loan.
Many people have a credit line in their checking account, which they use more or less regularly. This credit line can exist in parallel to an installment loan. If it allows the income situation and the Credit Bureau, nothing speaks against. The credit line is very well suited for bridging short-term financial bottlenecks or financing small consumer goods or repairs.
It can be used through cash withdrawals at the counter or at the vending machine or through payments by EC or credit card. An extra announcement or approval is not required. It only becomes difficult if you exceed the limit that is set for a credit line at regular intervals. Here, the bank can not only claim additional interest but will ask you to return your account to the limit. It is generally not advisable to constantly exhaust the credit line. It is a waiver and the bank has the right at any time to terminate or at least reduce the credit line if the necessary conditions no longer exist. This can happen very fast. If your income falls or falls completely off, the collection is usually canceled altogether.
In addition, the interest you have to pay to use the Dispo, often significantly higher than the interest on an installment loan. These are all reasons why you should think about a loan in spite of existing credit, if you can not do it on your own, to repay the credit in a timely manner.
Installment loans must always be requested separately. In contrast to the credit facilities, they are paid out or transferred in one amount and then have to be repaid in monthly installments. The time of the beginning and the end of the repayment is contractually agreed. During the entire term monthly repayment installments are due, the amount of which usually does not change and is determined in advance. A loan despite existing loans can be a loan despite existing installment credit and/or a loan despite the best available credit line. There are different variants conceivable here.
From time to time, it may be worthwhile to make a credit comparison and see if it would be worthwhile replacing an old installment loan and taking out a loan despite existing loans. Such a loan in spite of existing loans is especially worthwhile if the interest rates and the loan conditions at the current time are more favorable than the conditions at the admission of the original credit. However, prepayment penalties may be charged if you terminate an installment loan early. This should be remembered. It would be advisable to compare the amount of the prepayment penalty with the interest savings for the new loan.
If your financial situation has become very confusing due to numerous credit obligations, it is at least advisable to think about whether it makes more sense to combine these loans and replace them with a loan, despite existing loans. Not only is there a potential for savings here, but you have the opportunity to gain a much better overview of your obligations because you only have to pay a single monthly loan installment to a single bank.
Similar to any other loan, you must also make a separate loan application for a loan despite existing loans. You can submit this loan application either in the branch of the bank or Sparkasse or on the Internet. Many banks that have branches now offer both types of a loan application. If you would like to take out a loan from a direct bank or a foreign bank, despite existing loans, only applications via the internet are generally considered. You do not have to travel to the bank’s headquarters to complete the necessary formalities.
Once the application for a loan has been received by the bank despite existing loans, it will be reviewed immediately. This process usually takes only a few hours, even if the bank has yet to ask a Credit Bureau for information. Just as quickly, you can expect a payment of the loan amount after the loan has been approved.
Once the money has arrived in your account or has been paid out in cash, it will be available to you as planned.
The repayment begins at the agreed time. Some banks and savings banks grant their customers a break of several weeks before they have to start paying the first loan installment. This period can also extend to a few months. The repayment installments are usually consistently high and are payable over the entire term of a loan despite existing loans.