A financial bottleneck can be quickly compensated for with a loan. Ultimately, banks also make a living from lending. But what if a loan already exists? Can a second loan be taken out despite high debts?
Apply for credit despite credit
A loan is always entered in the Credit Bureau. An inquiry is also reported to the Credit Bureau. If you already have to pay off a loan and want to apply for a new one, you have to be aware of this fact. The first way undoubtedly leads to the bank that already has the loan. In many cases, the bank agrees to increase the existing loan.
However, this only happens if there are no negative entries in the Credit Bureau. However, the banks do not like to see it if an existing loan should be increased several times despite high debts. At some point the point comes, then the banks simply say no. That doesn’t even have to have anything to do with Credit Bureau, but if you want to constantly increase a loan, it clearly shows that it is not that far out with money.
Do not take out more loans than can be paid
For the borrower, the basic rule is to no longer take out a loan despite high debts if the income is simply not sufficient for the repayment. Overestimating oneself often leads to overindebtedness, which can no longer be overcome quickly. Applying for a loan can also prove to be cheap if the interest rates have dropped significantly since the loan was taken out.
A new loan can then save money, especially since such a loan can also be used for debt restructuring. This is particularly interesting for real estate loans that have a long term anyway. During this period, interest rates can fall, but of course also rise. A loan despite high debts really makes sense if it is used for debt rescheduling and thus money can also be saved.