Can I take out a loan despite having an existing loan, for example to finance a car and my furniture? Many consumer goods and some services can only be financed today with a loan. This applies not only to cars or real estate for which there are special loans, but also to furnishings, kitchen furniture or holidays. The self-employed or freelancers often have to make major investments in order to start or continue their work. It is not uncommon for a loan to be used to finance an additional tax payment. These examples could be continued as desired. In many cases, a loan is not enough. Below we show you when it really makes sense to take out several loans and when a debt rescheduling can be considered.
Requirements for taking out multiple loans
Nobody can prevent you from taking out a loan despite the existing loan. The prerequisite, however, is that you have the appropriate financial means to pay the loan installments for the existing loan and the new loan. The banks or savings banks will check this carefully when applying. If you want to take out a loan despite existing credit or even a loan despite current credit, your Schufa must also be in order. If you have had no problems paying the loan installments in the past and there are no other liabilities, the chances are good.
Credit Despite Current Loans – When Does It Make Sense?
Before you begin, think carefully about whether it really makes sense to take out a loan despite ongoing loans. You should never make frivolous decisions. However, there are expenses that cannot be postponed.
That may be the case if
- Pending repairs to your house
- Your car breaks down or
- if you, as a self-employed person, have to pay a larger additional tax payment to the tax office
It would make sense here if you took out a loan despite the existing loan. If you are in arrears with the tax office, you face various coercive measures, from the attachment of the account to an application for bankruptcy. You shouldn’t let it go that far.
Compare different loan offers to save money
Use your options and find a suitable loan despite ongoing loans. Compare different offers and only then make your decision. So you can save a lot of money. As a self-employed person, you should take out a loan despite a current loan even if you still owe your health insurance contributions. If you do not find a timely solution here, you face serious consequences. In the worst case, you have to expect considerable restrictions in the benefits, as the health insurance fund is entitled to classify you in the emergency tariff in the event of high arrears of premiums until you meet your obligation to pay again.
Taking out a loan despite having an existing loan
If you have decided to take out a loan despite ongoing loans and have found a suitable provider, there are often further questions. Does the credit rating deteriorate, for example, if you take out a loan despite an existing loan? Unfortunately, this question cannot be answered clearly, because it always depends on the individual case. This mostly depends on whether it is a condition request or a credit request.
In fact, your credit rating may improve because borrowing again suggests that you have good credit and a secure income at a level that allows you to pay multiple installments. On the other hand, creditworthiness deteriorates if you can no longer meet your payment obligations. This is also the case if this happens only partially.
There is another danger, however, if you take out a loan despite the existing loan. So you can easily lose track of when you have to meet your payment obligations to whom. This is particularly likely to be the case if you have to process not just two but several installment loans at the same time. Here it is worth thinking about possible alternatives.
Debt restructuring as an alternative for many loans
With debt restructuring, you can achieve different goals. This makes it possible to extend the term of an existing loan. As a consequence, the monthly credit rate can be reduced. If you have taken out a loan a long time ago, you should inquire exactly whether it makes sense to continue to use this loan as before. Interest rates are often significantly cheaper today. If you find this out in a comparison, you should consider replacing it. Then you can also reduce the credit rate because you have to pay less interest. An extension of the term would also be possible. This would also reduce the credit rate.