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
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
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.