Monthly Archive: March 2019

Loan despite ongoing financing

A loan in spite of ongoing financing is possible, provided the conditions are met. In concrete terms, this means that you must have a high enough income and a good credit rating. If you pay your loan installments on time, banks will not care if you only have one or more loans at the same time.

Requirements for a loan despite ongoing financing

Requirements for a loan despite ongoing financing

Loans are not only given by banks, but also by mail order companies, local dealers, car dealers or private lenders. These lenders can themselves decide on which terms the lending should take place. As a rule, a good income and a positive private credit information is required. The latter applies, however, only for loans that are awarded in Germany. Foreign loans are subject to different conditions.

Often not only an income is required, which is sufficiently high, but also comes from an activity as an employee. The self-employed and freelancers generally find it harder to find suitable credit. This applies even more to the unemployed, Hartz IV recipients or other persons who are completely without their own income. If anything, they can only get a loan if they can prove a second applicant who meets all the conditions for lending.

A positive private credit information is also an indispensable prerequisite for a loan. If negative entries are stored here, it would be very difficult, if not impossible, to get a loan from a German bank or another lender.

Compare loan offers – make a decision

Compare loan offers - make a decision

Before deciding on a loan despite ongoing financing, it is strongly advised to compare the terms and conditions of different providers. In this comparison, attention should be paid to interest rates, the level of monthly loan installments and the length of the term. The interest rates can be credit-related or credit-independent. Credit-based interest rates are particularly interesting for people who have a very good credit rating. You can benefit from very favorable interest rates.

A loan in spite of ongoing financing can be added to a bank loan, a car loan, a real estate loan or a mail-order or dealer loan. It may be earmarked or freely usable. In some cases, it may be useful to combine existing loans with a new loan. Often, however, several loans exist at the same time.

The consequence of this is that the borrower has to pay several monthly loan installments to several lenders. Here, pay attention to a punctual and complete payment of the credit installments. If the income is too low, there can be problems here. For that reason, before investing extra, be sure to check that you are truly capable of paying off the loan installments over a longer period of time.

Application, authorization and payment

If the decision has been made for a loan, the application must be made. This can be done at the lender’s site or on the internet. However, not all lenders offer both options. The loan application must be completed in full and truthfully. If he has contacted the lender, the details are checked. You must also attach other documents, such as proof of income or assets. If all conditions are met, the loan can be approved and paid out within a few hours or days, despite ongoing financing. For the payout, you must specify a checking account that does not need to be at the same bank responsible for lending.

With a installment loan, the entire amount is paid out in one amount. Subsequently, it must be repaid in monthly installments over a fixed period. These installments for a loan, despite ongoing funding, are composed of interest and repayment amount.

Loan to balance the current account

 

A loan to clear the current account can be taken at the house bank or any other German bank, savings bank or Volksbank. It is always useful if the credit line has been drawn on and if it is not possible to repay the money in another way medium or short term and bring the account back into positive territory. Before borrowing, it is very important to compare various branch and direct banks. In addition, you may also consider other alternatives such as a personal loan or a loan from a private broker.

loan comparison

loan comparison

For a credit comparison, there are several comparison websites on the internet. It can be done around the clock and every day of the week and on public holidays. This is a major advantage over a direct comparison of local banks. In addition, a credit comparison on the Internet only takes a few minutes and delivers a reliable, cutting-edge result. It can be repeated at any time if you have not found the right loan or if you are looking for a new loan.

In a credit comparison, you should look at the possible loan sums, interest rates, maturities, and other credit terms of banks and private lenders. For a loan to clear the current account, smaller loan amounts in the three- or four-digit euro range are usually sufficient. If you meet the requirements and wish it, you are, of course, free to accept larger loan amounts and to use the money that is not needed for the balance of the current account, otherwise.

credit conditions

A loan may be granted if the customer meets the credit requirements of the bank or the private lender. The credit conditions of German banks, savings banks or local banks are generally very similar. In the vast majority of cases, the loans are only given to employees or civil servants who have a sufficiently high income and also have a positive private credit information. However, a loan to clear the current account may in many cases also be possible for self-employed or freelancers, who are already well-known to the bank and have distinguished themselves by their reliable payment behavior. Further details can be obtained from the banks.

The interest rates for an installment loan are almost always significantly lower than the interest rates for a credit line. For this reason, you can save money in the short- and medium- or long-term by choosing a loan to clear the checking account.

Application, authorization and payment

Similar to any other loan, a loan must be requested to clear out the checking account on the Internet or in the bank branch or the private lender. In addition, the current proof of income and evidence of additional securities must be attached. The loan application will be reviewed within a short time and will be approved if all the necessary conditions are met. Now the money can be paid out. It would be ideal if the transfer is made directly to the checking account, which should be balanced with the loan amount.

The loan conditions are agreed individually. This applies to the loan amount as well as to the amount of the monthly repayment installments, the length of the term and other important details on borrowing and repayment.