It is not uncommon for borrowers to take out a new loan despite existing loans. Despite the ongoing financing for a new car, many households need a loan for further unavoidable purchases. The problem of taking out new loans despite debt is only problematic if both the existing loans and the planned new loan are for consumption and not long-term investment.
Top up credit or apply for a new loan?
The increase in an existing loan presupposes that it was not assigned to a specific purpose, as is usual with vehicle loans and real estate loans. The easiest way to top up the loan is when a large part of the original loan amount has already been repaid, since in this case the lender has already checked the creditworthiness for the corresponding amount. However, since the previous partner bank is not necessarily the cheapest solution for the new loan, a loan comparison before the final decision to increase the loan is essential.
Borrowing the new loan from another bank leads to another contractual partner and thus to another monthly payment. Since payment processing for consumer loans almost always takes place via a direct debit authorization, different contractual partners do not complicate the practical procedure for repaying the loan.
Capital lender credit without Credit bureau
Existing liabilities are not one of the negative characteristics in a Credit bureau report. Nevertheless, the application for a loan often fails despite debts at Credit bureau, because the existing loan liabilities are entered there. A Credit bureau-free Capital lender loan can help. These loans are not only suitable for people with negative entries at Credit bureau, but also for borrowers who want to take out a new loan despite debt.
Since the Capital lender bank is not a Credit bureau contractual partner, it cannot make an inquiry there. However, it is only possible to apply for several loans from Capital lender banks to a limited extent because USD is notified that it has taken out a loan. The central office for credit information can be compared to Credit bureau, but it also stores additional information such as information on the profession of the borrower.
What should you watch out for when borrowing further?
If consumers take out a loan in spite of debt, make sure that the total amount of the loan installments allows sufficient financial scope for unplanned expenses. Anyone who makes a loan comparison for the new borrowing anyway ideally checks at the same time whether their total loan costs can be reduced by rescheduling the existing loan liabilities.
In addition to the savings from lower interest rates on loans, prepayment penalties that may have to be paid must also be taken into account. If the new loan is to serve to redeem old debts, the borrower instructs the bank to transfer the part of the loan used directly to the previous lender.