Category: Credit

Credit possible despite existing credit?

Again and again in my professional practice I encounter the uncertain customer question about a loan, even though a loan already exists and whether that would not be negative for a new loan request; In short: whether a loan is possible despite an existing loan.

An existing credit obligation is often perceived by people as a negative feature. But the exact opposite is the case.


Is it possible to get a loan despite the existing loan?

loan payment

First of all, it should be noted that if a bank has already granted a loan in the past, a bank’s positive credit check must have already taken place without which this existing loan would not have been granted. Therefore, an existing loan is always a positive credit characteristic. After all, the customer has been creditworthy and creditworthy in the past and has already received a loan.

Whether this existing credit makes it more difficult to grant an additional loan depends only on whether enough free income remains after deducting the first loan installment (and all other existing payment obligations such as rent, insurance contributions etc.) to cover another loan installment; whether an additional loan installment can be permanently “leveraged” by the borrower.


Regardless of how a further loan requirement has currently arisen

loan requirement has currently arisen

The only thing that plays a role in the renewed loan request is the ability of the borrower to service both loans with his current income (and taking his existing expenditure into account), a role.

Only the current budget (income – expenses) decides whether a loan can be taken out, at which bank and on what terms.

The current practice shows that often a merger of the Fine Bankes with the new borrowing requirement – to a new credit can be done at lower rates, with an extended or shortened total running time and a the accounts adjusted installment amount and thus often even for the Fine Bank improvements achieved can be.

Either the interest burden decreases, the term shortens, or the new rate is the same for both loans as the old rate for the first loan. Here are a variety of adjustments possible and the wishes of the borrowers can often be met.

Directly below this, interested parties can use the free installment loan online comparison for a first interest comparison and a credit request.

For this purpose, for example, we have installed the free installment loan online comparison on our website, with which interested parties can find out quickly and above all free of charge which bank would like to support their project at all and under what conditions.

How to Improve Your Credit Rating?


If you want to borrow money in your bank or from one of the online lenders, there are a few important things you should first know about. Credit rating is one of them. But, what does it mean to be creditworthy – and how can you improve your chances of getting a loan?

In this article, we will take a closer look at what a credit rating really is, what it means to be creditworthy, and from what factors lenders make such an assessment of you when you apply for a loan at the bank or online. Read on and we’ll give you the details.

What is Credit Rating?

What is Credit Rating?

When we talk about credit worthiness, this describes your card, your financial situation and the opportunity to take out a loan, either in your bank or online. If you have a good credit rating, this means that you have a tidy personal finances, have no payment notes or are registered and you can honestly afford to repay the loan. Thus, you have a credit rating that is likely to be perceived as good.

Today, all loan providers – whether it is the bank or the loan companies online – will do a credit assessment of your financial situation before they consider giving you a loan. Also, of course, they will make sure that they do not give you money if you are unable to repay the loan, so a credit check is really for your own good.

A lender will never be able to give you a loan if the lender does not believe that you can afford to repay the loan. Therefore, if you are denied your loan application, it is certainly not without reason.

What factors affect your credit rating?

What factors affect your credit rating?

First and foremost, it is important to note that different loan companies and banks make different requirements for you who want to take out a loan. Some online loan companies, for example, impose stricter age and income requirements than others.

Therefore, it is always a good idea to check the market thoroughly before you spend time submitting a loan application to the first and best lender. That said, in most cases, the factors listed below will determine how each lender will rate your credit rating – in the positive direction:

  • If you pay your bills on time and have minimal overdraft on your account
  • If you are not registered or have payment notes
  • If you have a stable economy without the large fluctuations in wages and other income
  • If you have an adequate monthly income
  • If you do not have outstanding debt
  • If you are between 18-65 years old

If you can cross all these points, your credit score will probably be considered good

However, if this is not the case, there are some things you can do to significantly improve your credit rating.

4 tips for improved creditworthiness

4 tips for improved creditworthiness

Creditworthiness and credit rating are thus two concepts that cover the same area. The lender uses the credit rating to assess whether you are worthy of borrowing money. After all, it’s all about risk and, the healthier your private economy looks, the lower the risk is usually for the lender. This results in lower interest rate / cheaper loans and more likely your loan application will be approved.

1. Increase your earnings

The first thing you can do is increase your income, although this is obviously easier said than done. However, if, for example, you currently only receive unemployment benefits, this may of course mean finding a job. If you are a student, finding an extra job may be worthwhile. You may also have a part-time job that can be extended to a full-time job. There are many options, but your income has a significant impact on your ability to get a loan.

2. Strengthen your personal finances – save money

Then you can work towards strengthening your personal finances, which is much easier to do than what point 1 describes. There are a lot of things you can do to save money and improve your personal finances. As a consequence, you will then have more money available each month, which will ultimately result in an improved credit rating.

– You can sell things you don’t really need and thus get extra spending money.

– You can review your subscriptions and stop those you don’t use as much.

– You can do a price check and see if you can lower your monthly expenses.

-Shopping food for the whole week and avoid the temptation to buy unnecessary foods / snacks, etc.

– You can set up a food budget and buy food on offer.

In particular, the latter point must not be underestimated. Most of us spend unnecessarily much money in the country supermarkets, but if you have a food plan, you also minimize the number of impulse purchases. This is something that can save you a lot of money, without too much trouble. It’s just about getting into a better habit.

3. Pay off existing debt

The third tip is to pay off your existing debt as soon as possible. Lenders will always prefer that you have little debt, rather than a large fortune and a lot of debt. Should you end up getting into financial difficulties, there will be several creditors that may require you to take your assets. Therefore, less debt will give the lenders more security by lending money to you and thus strengthening your credit rating.

4. Pay your bills on time

Last but not least, you should focus on paying your bills on time. This may seem like an insignificant detail, but if you often exceed the payment deadline, it sends out a bad signal. So, unless it is due to financial problems and not just a forgetfulness or laziness, you should definitely avoid this.

Bottom line, because of the financial difficulties you may face, you should pay extra attention to the first two tips here.

Change your habit and improve your credit score

We hope this gives you a little better insight into what you can do to improve your credit rating. This is actually a lot easier than most people think, though it may require you to swallow some camels along the way and are willing to change some of your habits.