Loans very often serve as the basis for realizing long-standing wishes or dreams. Sometimes it is the supposed little things that make a person really happy. But if these “little things” can only be realized with the help of financial means, then it can happen that they remain a dream and the desire or need cannot be met.
Many consumers therefore take out a loan to make things real that they only dreamed of in advance. Since the range of loans is very extensive and they are also offered in many areas of everyday life, this is not a problem. But what to do if a loan already exists and a second additional loan should or must be taken out? Is there a loan despite existing loans? And how could this take place?
The offer of credit
There are quite a few different types of credit, which can either be individually adapted to the project, or are specifically aimed at a specific group of consumers. Among other things, the installment loan and the overdraft facility are adaptable. In contrast, the car loan, the real estate loan or the student loan and the start-up loan are specially adapted.
Which type of loan is best for your project depends on which plans you are pursuing. If you need the money from the loan at your free disposal, the installment loan or the overdraft facility as a loan is the best choice despite existing loans. On the other hand, if you are planning to buy a car, the decision could be made on the car loan. When buying or renovating a property, the real estate loan can be the best choice.
Therefore, think carefully in advance about which type of loan is best suited.
How a loan can be taken despite existing loans
In order to be able to take out a loan despite existing loans, it is important that you have a certain amount of liquidity despite the existing loans. This means that the existing loan (s) have not restricted your creditworthiness to such an extent that the bank or savings bank refrains from offering another loan. However, if this is the case, you would have to contact a private lender or involve a guarantor or second borrower to borrow.
If you choose the variant with the private loan, the creditworthiness is rather secondary. In such a case, a surety is also only required to a limited extent. However, you would have to expect a higher interest rate than with a conventional installment loan and your lender will not be one of the classic banks.
However, if you decide to call in a guarantor or a second borrower, the borrower should be able to fill the gaps in your creditworthiness that are opening up to you.
But no matter which way you choose: It is always important that you compare various offers in advance and work out their advantages and disadvantages. Especially when several loans have to be serviced, it can be crucial that the loan rates are quite low. In addition, you should pay attention to the effective annual interest rate, which clearly shows you how expensive the loan you selected will ultimately be.
If you have carried out this detailed comparison with the help of a comparison calculator, it is still necessary to establish contact with the funding agency. This is particularly easy via the Internet. By filling in the relevant loan application and presenting the required documents, you have already taken all the important steps on the way to a loan despite existing loans. Afterwards you only have to wait for the decision of the financial institution in order to start with the fresh money from the loan if the decision is positive.
What should be considered with a loan despite existing loans
A loan despite existing loans must not become an unmanageable burden. Therefore, always make sure that the additional credit doesn’t mess up your financial plan too much. See when existing loans expire and what financial resources could be freed up. Then think about whether you can imagine another loan under these conditions.
In order not to fall into the debt trap, it is very important that you make these preliminary considerations. Because taking out a loan is done quickly. Unfortunately not to settle this down to the last cent.