Credit despite home loan
The financing of a house is usually designed for many years. After all, a home loan is usually a very large loan that has to be broken down into many small installments due to its volume. It is therefore not uncommon to expect a credit burden over 20 and more years.
But of course, life goes on during the repayment of the loan. Borrowers face new financial challenges that also have to be mastered. If the income or savings are not sufficient for this, a loan must be considered despite a home loan. Maybe not always what the homeowners imagine. Because many are afraid that the bank will not grant such a loan.
We would therefore like to show you how you can take out a loan despite a home loan. On top of that, we want to give you examples of borrowing and explain the requirements for such a loan.
The banks are scrutinizing
Banks and savings banks attach great importance to security when granting a loan. You therefore look at what income and what expenditure is available and in what proportion. Since you have already taken out a loan to finance your home, you will have higher expenses than other borrowers. Even if this may seem a little unfavorable at first glance, it is still not a cause for alarm. After all, it always depends on how high your earnings are and how they are presented to your expenses. If there is enough money left for further financing despite the house loan and other expenses, there is actually nothing standing in the way of the loan despite the house loan.
Despite a hopefully good income / expenditure ratio, the bank will also take a very close look at your Credit Bureau. Above all, you are interested in whether you have negative Credit Bureau entries. This is because they document that your financial behavior was current or not entirely in the past.
In order to increase the chances of a loan despite a house loan, we recommend that you consult Credit Bureau before applying for a loan. You are allowed to do this free of charge once a year. This query not only shows you whether you are free of negative entries. It also shows you the score. This indicates how high the possibility of a default on your part is, which has a significant impact on borrowing. The better the score, the higher the chances of getting a loan.
With the information in your luggage, you can then start looking for a suitable loan offer for a loan despite a home loan. In doing so, you should definitely observe the following things.
Keep an eye on the costs
Check how much credit you really need for the new loan. Do not borrow more than is necessary to avoid over-indebtedness. Choose small monthly installments that match your income and expenses. Keep in mind that despite the new loan, there must still be financial scope for other unexpected expenses.
Do not take out the loan without having carried out a comparison beforehand. It is best to use a comparison calculator for this, which you can find here on the Internet. The comparison calculator uses your information to determine the best loan offers and presents them to you in a clear format. You can then decide freely and without obligation which offer you want to take advantage of.
If you have problems with your credit rating through the house loan, look for a guarantor to take out the second loan. To the extent that it is solvent, it will improve your creditworthiness and ensure that the loan offers submitted to you have a more attractive interest rate than the offers that were offered to you without the support of a guarantor.
Which loans work best?
If you are looking for a loan despite a house loan, then you should be as modest as possible with regard to the loan amount. Especially when the home loan is still fresh and is with you for a long time. Therefore, choose a small loan as far as your project allows.
Should you need another loan for the house, it could be more clever if you simply topped up the old loan than to take out a new loan. However, if you want to buy a new car, then a car loan is the best choice. It provides good financing that is secured by the vehicle. And if you only want a new television, the best thing to do is to contact the dealer who sells the television. In such a case, you would be best positioned with a simple consumer loan.