Credit despite existing credit – what are the terms

Many credit institutions advertise with loans and attract customers with low interest rates. This entices some people to take out a loan in order to fulfill their wishes. If the salary is sufficient, everything is not a problem either. The creditworthiness of the customer also counts. If there are no complaints, a loan approval is usually given. For this, monthly installments must be paid, which depend on the terms of the loans.

Credit increase or new loan?

Credit increase or new loan?

At some point during the term of the loan, another loan may be needed despite the existing loan. But is it actually possible to get a new loan if the old one has not yet been repaid? Some banks refuse to do so. In fact, the question arises whether another loan makes sense? Wouldn’t an increase in existing credit be the better alternative? The fundamental question is whether there is still enough scope for another loan.

One should not forget that a loan costs additional interest despite the existing loan, which makes the loan more expensive. If a new loan is absolutely necessary, then the old one should be increased. Ultimately, most banks advertise topping up a loan and an inquiry doesn’t cost money. However, it must be ensured that the installments can continue to be paid on time.

The lending bank

The lending bank

A loan despite an existing loan initially leads to the bank from which the first loan was applied for. This can shorten the personal interview with the advisor because the bank is already aware of the circumstances. Nevertheless, the clerk will take another Credit bureau exam. If negative entries have been added in the meantime, an increase in credit is guaranteed to be refused. In such cases, the only way is to go to a foreign bank, which can have its advantages.

Foreign banks and the Credit bureau

Foreign banks and the Credit bureau

The advantage of borrowing from a foreign bank is that it does not check Credit bureau. Conversely, this also means that such a loan is never reported in Germany. The lending bank learns nothing of further borrowing. This can also be an advantage if there are no negative Credit bureau entries. Because a further loan despite existing credit can reduce the creditworthiness. This does not happen if you borrow abroad.

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