Basically, there is no limit to the number of loans. If you have a good credit rating and can comfortably afford the loans, you can have several loans at once. Applying for a loan despite having several loans can have several reasons. On the one hand, a new loan is being sought in order to replace the existing loans, but also a separate financing can be used. As a general rule, taking out a loan despite having several loans can sometimes be difficult.

The credit despite several loan – the prospects

The credit despite several credit - the prospects

A loan can help, for example, to make a larger purchase, to fulfill a wish or simply take out a loan despite several loans to get a better overview of his finances. But even those who want to buy a property, usually needs a loan. The high loan amount when buying property is usually not without. However, it can often happen that additional funds are needed during the term of the real estate loan. This can be, for example, the purchase of a car or a new TV or you want to treat yourself to a trip. But there can be many stumbling blocks on the financial market.

If there is already a high loan to pay off, the bank is no longer so generous with lending a loan despite several loans. If the customer has a perfect credit rating and even upside when the real estate rate is deducted, it could work with a new loan despite several loans. If a loan seeker applies to a bank that does not have to be the house bank, but can also be another provider, a loan, then the lender will ask the private credit. So before the loan approval a private credit request is made. In this of course there is the real estate loan or other loans, which can ultimately reduce the credit rating.

The private credit

If you open a bank account, you usually have to sign a declaration of consent, which entitles the bank to take a look at the private credit. If the customer refuses to sign this declaration of consent, the banks will not agree to the opening of the account and the granting of the loan. 
But what are the tasks of private credit? Why do banks ask the private credit? 

Private credit – Collective Protection Group – collects data from consumers who have checking accounts, loans, outstanding accounts, mobile phone contracts and much more.

Generally, the main task is to protect banks from payment defaults. In doing so, both the well-being of the banks and the welfare of the loan seeker are taken into account. The entries stored in the private credit are intended to protect against over-indebtedness of the customers. Therefore, a negative or positive decision is communicated to the bank.

If the entry is negative, it can be assumed that a proper repayment of the credit costs is not guaranteed. The private credit has information about the name, the typeface and also special details about accounts and credits of the loan seeker. When an account is opened, a credit card issued, as well as the approval of credit, that everything is stored in the private credit. If a customer pays back a loan agreement as agreed, it will be entered in the private credit. This sometimes results in comprehensive data on bank customers. A negative entry in the private credit usually triggers a loan refusal. Then getting a loan from a branch bank or even opening an account is almost impossible.

Even if the customer has several loans and properly repaid, there may be problems because of the private credit. The information provided by the private credit is divided into A and B information. For example, category B has all the information about whether a contractor is behaving properly, for example, repaying his loans on time. The creditworthiness of a customer is assigned a score. These are values ​​between 1 and 100. The lower the value, the less creditworthiness is interpreted. However, the score should only be indicative. The private credit itself has no influence on whether a loan is approved or not. The decision is made by the lender. Before a loan seeker looks for a loan, he should do a free private credit query.

The possibilities

Anyone looking for a loan despite several loans, now knows that his credit rating on the private credit is queried. This predicts the probability of whether the customer will pay his installments properly or not. Before a loan is issued despite several loans, the bank will also draw up a household bill. There is a comparison of income and expenditure. This procedure shows whether, after deducting all liabilities, there is still room for a new rate. If there is this case, the loan seeker gets a loan.

Therefore, it is quite possible that a loan is crowned with success despite several loans. But sometimes banks require existing loans to pay off or pay. For example, in the case of car finance or home or housing financing. Especially when there are large sums, the bank wants to play it safe. 
In general, if you have a good credit rating, you will also get a loan despite having several loans.

A rescheduling of a loan despite several loans is just as useful as a new loan. The bottom line is an improvement in the financial situation. If all existing loans are combined and a favorable interest rate can be offered, creditworthiness improves significantly. Basically, who has several creditors to serve, the worse the credit will look. The reason is to look at the likelihood of default. It quickly happens that the financial overview no longer exists.

In addition, cheaper rates can also be better paid, because several accruing installments can increase the risk of default. Before the customer tackles a loan rescheduling despite multiple loans, he should conduct a credit settlement. From this he will see where to find the cheapest provider with the best conditions. Often can be made from the credit comparison out the selected provider of the loan application. This is followed by a very quick preliminary approval of the loan. The final approval will only be given when the bank has proof of earnings, a permanent job, a permanent residence and a clean private credit.

If German banks are unwilling to approve another loan despite several loans, a Swiss loan can come into play. Many foreign banks lend to German consumers, even if they have to serve several loans in their home country. A credit intermediary can be of assistance to a Swiss loan and can act as a contractor between the bank and the client. For loans from Switzerland, the private credit is not queried, as these do not exist in this country, Therefore, the non-private credit loans, as they are called, a helpful anchor for lending for people with limited credit.