Credit despite current credit use a loan that is offered by banks

1 Mar

Many people want to secretly fulfill their longed-for wishes. Be it a new car, a vacation trip with the whole family or the latest technology (e.g. a flat screen TV). Unfortunately not all people have the opportunity to afford these material things, often the necessary money is missing.

It gets bad when essential things have to be bought. This can include, for example, a washing machine or a heater. Especially with these purchases, you can then use a loan that is offered by banks. However, people are often afraid that they will not get a loan because another is already running.

A loan despite a current loan – a welcome option

A loan despite a current loan - a welcome option

In principle, it is important that a loan applicant can provide the necessary security, in technical jargon one speaks of a credit check. The financial circumstances of the applicant are checked here. Possessions of shares or real estate are also included in this check. In the case of a loan despite a current loan, the regular income and expenses are also compared.

Banks usually assess creditworthiness in such a way that 10-15 percent of a monthly salary can be seen as the maximum possible repayment rate. If the existing loan is significantly lower, it can be realistic to grant another loan. The conditions and framework conditions for a loan despite a current loan are presented in more detail below.

At a glance – framework conditions for a loan

At a glance - framework conditions for a loan

The usual credit modalities are generally valid. Maximum loan amounts of up to USD 25,000 are granted. The lower limit is around 500 USD. In the case of a loan, monthly installments are usually made by the borrower despite the current loan. An important factor for the composition and amount of the installments is the interest rate. This depends on the bank and is 2.5 – 8 percent depending on the market situation. As an applicant for such a loan, however, you should really make sure that you do not overpay yourself financially. One should also expect worse financial times (e.g. short-time work or unemployment). If these are observed and followed, multiple drawdowns are quite possible. A pleasant option for bank customers.