If the credit rating is in order, it is usually not a problem to take out a loan despite ongoing loans. It only becomes difficult if the income is too low or is not paid regularly. Even negative Credit Bureau entries make borrowing much more difficult or impossible.
In principle, it is possible to redeem current installment loans, to settle an overdraft facility or to combine several loans. If the old loan obligations are to remain unchanged, a new loan can also be taken out. Another alternative would be to increase the existing credit. In all of these cases, the requirements for creditworthiness vary.
Repay installment credit or overdraft
If you took out an installment loan some time ago that has not yet been fully paid off, you can consider replacing it with another loan. If additional financing is required, an increase is also possible in this context. However, the most important prerequisite for this is that your income is high enough to allow the loan installments to be paid for the new loan without putting you at risk of neglecting your other financial obligations.
The reasons for a loan repayment or a new borrowing are very diverse. The fact that interest rates have fallen in the meantime often plays an important role. Low market interest rates always have an impact on the interest rates on the loans offered by banks and savings banks in Germany.
There are a number of things you need to consider before seriously tackling a detachment. It is very important that you check the loan agreement to see whether a prepayment penalty may have to be paid for the early repayment of your previous loan.
If this is the case, it would also be appropriate to make an invoice as to whether the interest savings on a new loan are higher than the prepayment penalty. A loan repayment is only worthwhile if you can answer this question with yes. The loan can be taken out from the same bank as before. However, it is also possible to look for another bank that can offer you significantly better credit terms than your previous bank.
A loan despite ongoing loans can be an installment loan with which you can redeem an overdraft facility. The overdraft facility is available on an ongoing basis and can be repaid flexibly, but should also not be used on an ongoing basis. The debit interest rates for a overdraft facility are generally higher than for an installment loan, even though many banks have recently started to significantly lower their debit interest rates in accordance with legislative requirements.
In addition, an overdraft facility is always a voluntary service provided by the bank. You do not have a legal right to set up an overdraft facility. This enables the bank to reduce or cancel your overdraft facility at any time if the requirements are no longer met.
At least, you should think about a loan despite current credits in connection with an overdraft facility if you see no way of repaying an exhausted overdraft facility in another way in the short or medium term. A loan despite ongoing loans can be an installment loan, which you can get from your house bank or another bank. This is a normal consumer loan that you can use freely.
Many people pay regular loan installments for ongoing loans and have also overdrawn their overdraft facility. It can often make sense here to summarize all liabilities and to take out a new loan with which all these liabilities can be repaid step by step and in monthly installments.
Additional financing needs
In principle, it is possible to take out a loan despite ongoing loans. This also applies if the new loan is not intended to replace the old loan, but if there is an additional need for financing. There are no restrictions on how many loans a person can take out, provided their credit rating allows it.
So it is not so rare that a person or family has taken out a real estate loan and / or a car loan and now needs an installment loan. Here the creditworthiness of the applicant (s) is checked thoroughly and then a decision is made as to whether a loan can be granted despite ongoing loans. In addition, there is often an upper limit up to which a loan can be approved despite ongoing loans. This upper limit is not generally determined, but depends on the personal requirements of the borrower. In the decision of the banks, both the income ratios and the Credit Bureau data are included.
Before deciding on a loan despite ongoing loans, it is very important to compare several offers. The house bank offers are not always the cheapest. Important points in a credit comparison are the interest, the loan amounts, the terms and the credit rates.
It may be worthwhile not only to limit your search for a loan to Cream Banks, but also to extend it to foreign banks. Foreign banks do not request Credit Bureau information. This can be an advantage for everyone whose income is sufficiently high, but who have Credit Bureau entries that have a negative impact on their creditworthiness