Credit despite current credit – solutions
A loan despite current credit is possible. However, the question remains whether there are better solutions than parallel loans.
What to look for in a second loan, what alternatives are available? Many providers promise the most beautiful solutions, but don't really address the topic with all its facets in detail.
What effect does a second loan have on the schufa? Read this guide to find out everything you need to consider when taking out a loan despite ongoing credit.
However, we do not go into how it behaves when you want to take out an installment loan in addition to a construction loan. Here the facts are different.
Credit in spite of current credit
If we take a look at the consumer landscape, it quickly becomes clear that it's entirely possible to service more than just one loan. A new car was purchased a few years ago, there are still about a year's worth of final payments to be made.
In addition to the car, a new kitchen would also be necessary – the furniture store offers an installment plan. As we all know, nowadays it is often cheaper to buy a new television than to have the old one repaired.
The electric market solves the question of payment with a financing concept. And already three installments are being deducted from the account every month.
But are three loans in parallel really the optimal solution, or isn't there a risk of getting bogged down? And how do three loans affect the schufa?
How many loans can you have?
The answer to the question "how many loans can you have?" Depends solely on the creditworthiness of the borrower. Large companies refinance themselves through bank loans and the issuance of bonds.
With a corporation, a loan is not enough. But just as with a private household, the creditworthiness of a company also plays a role.
For the bank it depends on two points:
- Can the additional installment still be paid in the long term?
- Where does the borrower's garnishment exemption limit lie?
What can and should be done to get a second loan?
First of all, it is a matter of determining the net household income freely available for the additional installment. This is done by a budget statement for the last three months.
Three months because some debits are only made quarterly. Contrast last quarter's income with expenses.
Important: government benefits do not count as income because they are not subject to garnishment.
./. Living expenses for three people: $1.000 euros
./. Current credit installment: 250 euros
Free household income: 250 euros
This amount would be available for further borrowing. Assuming a term of 84 months. The potential loan could increase at an average interest rate 18.000 euro.
However, this option does not yet take into account the garnishment exemption limit. Banks always assume the worst case. In this context, this means how much money can they seize if the borrower can no longer pay the monthly loan installment.
The garnishment exemption limit is based on net income and the number of dependents in the household. In our case, three people and 2.300 euros net, the attachable income portion is 172.29.
Already the first bank may have flinched at the lending process. The second bank will get a stomach ache as they would come up empty in case of missed installment payments.
Note: however, the decisive factor is primarily the freely disposable household net income. This is well above the garnishable income percentage. As a result, lending may well be possible.
What does the bank count as income in a household calculation?
First, of course, income from a regular job. Income from secondary employment is also taken into account.
However, the weighting is lower, because part-time jobs are often classified as insecure.
Income from self-employment or drawing a pension also counts as income.
Under no circumstances are child support or other payments from the government counted toward it. These are quite necessary in daily life to meet the cost of living, but not attachable.
Which bank should I go to for a second loan?
There are three possibilities. The first point of contact would be your local bank. The downside is, the borrower only gets one offer and can't compare.
The second option would be to stroll through the pedestrian zone and ask for conditions at the institutes represented there. This procedure is extremely time-consuming and also offers only a small section of the credit market.
The third option is the most promising, using a loan comparison on the internet. A credit comparison portal doesn't just work with one or two providers.
Such a portal, such as smava, cooperates with over 20 providers. It is not limited to banks.
Smava also incorporates credit platforms for the mediation of loans from private to private in its offer. This significantly increases the chance of a loan being granted, as private investors apply different criteria than a bank would.
Smava – one request, six offers
At this point, we would like to briefly discuss smava in more detail. This portal works on its own principle.
The prospective customer first goes through the questions for a loan application and only receives the comparison of providers in the second step. It now selects the bank that is eligible for it.
This will forward a request, but also only at one bank. Smava does behind-the-scenes verification of the prospect's information.
The portal now looks to see if other banks could act as lenders. If this is the case, a request is also made to these.
In this way, the potential borrower receives up to six loan proposals – with just one request. This inevitably increases the chance of getting a loan.
A tip for the inquiry: if you have a low income, make the term as long as possible. This reduces the monthly rate.
What are the requirements for a second loan?
We had already mentioned the most important requirement, the household net income must be sufficient. However, there are other issues that play into the credit approval process.
Most banks generally require permanent employment outside of probationary period. A preferably unencumbered schufa increases the credit probability as well.
Those who can, should bring in a second applicant. This increases the number of people for the credit institution who can be held liable in the event of an installment default.
A second borrower generally boosts your credit score, which also leads to a better deal on credit-related interest rates.
Is it still possible to get a loan despite current credit?
It doesn't matter to the bank if there is more than one current loan already in place. The deciding factors for credit are the facts listed above.
For the schufa, however, multiple loans do play a role. You can lead to the fact that the schufa score is worse.
By the way, this can happen even if a consumer has never used a loan before. Paradoxical, but it is so.
In this case, schufa assumes that his creditworthiness was too weak for banks to grant a loan.
How many loans can I have if I have a second borrower (co-applicant)?
What has already been said applies here as well. If the creditworthiness and disposable income are right, the number of loans is theoretically unlimited.
This also applies if you have a second borrower. Not the number of loans is decisive, but the financeable volume of installments.
Credit possible despite leasing?
Leasing falls under the generic term "financing. The lessee goes through the same credit check as with a loan agreement.
If he wants to take out an additional loan during a current leasing contract, the free monthly income also applies again. If it is sufficient and the creditworthiness is right, nothing stands in the way of a loan despite leasing.
Credit despite low income
We can only repeat ourselves, the freely disposable income is an important deciding factor for granting a loan. Of course, the loan amounts are from the outset at a net of 1.500 euros in most cases less than 4.000 euros net.
By stretching the term, the installment is lower, because the redemption portion is lower. With this trick can play a little.
However, the seizure exemption limit comes into play again. There must still be a certain amount of income for the bank to be able to seize in case of doubt.
However, we had already pointed out that the consideration of the seizure exemption limit is also at the discretion of the bank.
Financing a car despite a current loan
We assume that the income and the exemption limit leave enough room for an additional car loan. A car loan as a second loan may be easier to get than financing a kitchen.
The reason is the transfer of ownership of the vehicle as security to the bank. If the borrower gets into payment difficulties, the bank has the car as collateral and can sell it.
With the proceeds of the sale it can pay at least part of the remaining debt.
Credit from abroad a possibility?
It has become known to some that there is the so-called credit without schufa abroad. In this case, neither a schufa inquiry nor a schufa entry takes place.
In this way it would be possible to conceal from the foreign bank that there are other loans for the applicant. However, these loans have more than one catch.
The loan amounts are limited to 3.500 euros, 5.000 euros and 7.500 euros fixed and all equipped with a term of 40 months. The borrower may not use any other loans and must redeem them, if available, with the loan from abroad.
The requirements for a loan from abroad are relatively high. They include, among other things, a relatively high minimum income and a maximum period of absence from work due to illness.
Apart from the low loan amounts, a loan from abroad is only the second best solution, unless all options in this country have been exhausted.
How many loans without schufa may have?
Loans without schufa go closely with the loan from abroad. In most cases, both are a loan from the liechtenstein sigma bank.
As said, the restrictions are tight. Sigma bank does not allow borrowers to use two or three loans there.
Whoever wants to take out a loan for 3.500 euros uses and another 5.000 euros is probably out of luck. Maximum are 7.500 euros possible, which in turn is reduced by the residual debt of the first loan in the disbursement.
It works in this case only if the residual debt of the first loan is less than 2.Amounts to 500 euros.
Rescheduling as an alternative
In the introduction, we raised the question of whether several loans in parallel are a good approach. We say "no". Why?
First, several concurrent consumer loans have a negative effect on the schufa. The scoring decreases.
However, the schufa evaluates a classic installment loan differently than a construction financing. Construction financing plus installment loan yes, installment loan plus installment loan no, that's the assessment.
Multiple loans also cause the borrower to lose track of what is being borrowed. The many retail installment options present another risk.
There is a threat of overindebtedness. Here the cell phone, there a small instant credit, the financed washing machine and the hardware store grants on lawn mowers also installment facilities. Unfortunately, the balance due on your credit card will be forgotten.
The month is approaching, at the end of which the first return debit note will arrive. This does not have to be, you keep track as a borrower.
The easiest way to keep this overview offers a debt restructuring. This is understood as the combination of several loans in one.
Suppose you have two loans running. One has a residual debt of 2.000 euros on, another of 3.200 euros.
The current credit requirement is 6.000 euros. Consequently, the new loan application is 11.200 euros.
It contains also the reference that the two existing loans are to be redeemed. The bank takes care of this completely uncomplicated for the borrower.
The benefits of debt restructuring:
- Is it easier to get a loan with existing credit as part of a debt restructuring.
- A debt restructuring has a positive effect on the schufa scoring. There is only one credit left.
- There is no chance of over-indebtedness due to too many small loans. The borrower keeps track.
- Debt restructuring may offer more favorable conditions.
We had already cited the comparison portal smava. Smava has made a name for itself in successful debt restructuring since its inception.
Due to the wide spread of cooperation partners, the probability of debt restructuring is very high.
Avoiding overindebtedness in general
Over-indebtedness marks the beginning of economic decline for many households. Over-indebtedness is the term used when current income can no longer cover current obligations.
The end is usually the path to private insolvency. We can only recommend that you keep track of your monthly payment streams.
Over-indebtedness does not happen overnight, it is brewing. Who has the uneasy feeling that it becomes financially ever more closely, should visit a debtor consultation.
One place to turn in this case is caritas. Debt counselors also talk to creditors before "it's too late".
However, it is also possible to set the course in advance to avoid a lot of debt. Those who build up reserves, for example for repairs, are not unexpectedly faced with the problem of taking out a loan.
There is also room for other expenses, a vacation perhaps, without the need for a new loan.
Summary and recommended action
Borrowing despite current credit is possible if the borrower has adequate monthly financial flexibility. However, he should not completely lose sight of the garnishment exemption limits in the process.
Multiple loans at the same time, however, harbor creeping dangers. In addition, they have a negative effect on schufa.
Our recommended course of action is clearly to bundle the loans, reschedule the debt. So there is order in the finances and it is also good for the schufa.
However, rescheduling should not be done blindly, but through a targeted selection of the most suitable bank. A comparison portal such as smava offers the best assistance for this purpose.
The selection of possible partners, which goes beyond the customer's request, is free of charge and does not involve any hidden fees. We recommend smava – point.
With a topic like "credit despite current loans," questions are bound to pop up all the time. We have compiled the most frequently asked questions and the appropriate answers for you here in our FAQ section.
When it comes to moving the loan with, this is possible if the new bank takes over the loan. There may be an early repayment penalty due at the previous bank.
If the new bank agrees to grant the loan, the redemption for the customer is carried out without great effort. Banks regulate this among themselves.
The answer to whether the guaranty will be approved is based on the guarantor's financial circumstances. If these are positive, despite current credit, there is nothing to stop a guarantee.
On the one hand, the amount of the loan is decisive. The income must be sufficient to be able to pay the installment. When in doubt, the rate can be lowered by extending the term of the loan.
The longer the term, the lower the repayment portion in the installment.
However, some banks require minimum income. These are based on the number of dependents living in the household.
Since these minimum incomes vary, it is worth taking a look at the acceptance guidelines of the respective provider.
There is no regulation that says how many loans a person can have. Provided your monthly income is sufficient and your credit score allows it, there are no upper limits on the number of loans you can get.
In theory, this is possible with any bank. However, it makes more sense to use a loan comparison service like smava.
On the one hand, the choice is greater from the outset. On the other hand, smava knows which partners are eligible for which constellation.
Smava will then make other suggestions on its own initiative.
Construction financing and installment loans are not lumped together in consideration. Provided the installment loan is within an average range, it can often even be rolled over into construction financing.
Thus, the borrower benefits from the more favorable interest rates for real estate loans, even if it paid for a vacation.
There is no blanket answer to this question. The outcome depends on the applicant's personal situation.
To save time and effort, we recommend the use of a comparison portal, where the borrower receives several offers with one inquiry.