Whether a loan is possible despite a loan depends on various factors. The personal creditworthiness and the question of whether the borrower is financially able to service another loan in addition to his previous loan play a particularly important role.
Loans despite overdraft
A very frequently practiced variant is the use of the overdraft facility in connection with the taking up of a new installment, consumer or auto loan. Both loans can help finance larger valuables. But they can also be used for very different things. The only requirement for this is that they are not specifically earmarked, as is the case with car or real estate loans.
An overdraft facility is usually granted when the customer has a secure income and has so far proven to be reliable. There are similar requirements for an installment or consumer loan. However, it should be ensured that the desired loan amount is in a reasonable relation to income. Whoever earns only 1,000 or 1,200 USD net will hardly be able to take out a loan of 100,000 USD.
Loan despite installment loan
A loan despite a loan can either be taken out in addition to an existing loan or to replace an old loan. In the former case, the monthly income would have to be high enough to allow the payment of several loan installments. The bank will issue corresponding invoices here. In addition, the Credit Bureau information should be in order and should not contain any negative entries. If a proper repayment is guaranteed, the customer could theoretically take out as many loans as he would like.
It only becomes difficult if the income declines for some reason or fails to appear altogether. In this case, regular payment of the credit installments would still have to be ensured. If all the requirements for a loan are met, the loan can be transferred to the customer’s checking account within a very short time despite the loan.
It is not necessary for this account to be with the same bank that is also granting the loan despite the credit. Individual agreements are made for repayment. This also concerns the question of whether and to what extent early repayments or special repayments are possible.