Credit with debt – Pay off the loan

November 29, 2019 By Roy Tester

A loan with debt? Debt is actually not a reason why banks refuse a loan request. The banks set a credit line for everyone based on their income and household situation.

Existing credit obligations reduce this framework, but another loan can still be taken out if it fits within this framework. This shows that debt does not always have to lead to a credit cancellation.

Hopeless? This is how credit goes with debt

The real reason why banks don’t like debt is the origin of the debt. A bank loan or other installment loans are almost irrelevant to the banks. But when it comes to other debts, the banks will not be able to pay off the loan. Such debts, which come from unpaid bills, are saved in the Credit Bureau. A company that looks into Credit Bureau itself when a contractual relationship is entered into will also report if there are any payment problems. And it is these debts that the banks do not like to see.

A negative entry in the Credit Bureau is equivalent to a loan cancellation at the banks in Germany. For your own safety, you may not grant any further loans. The fact that a further payment default is possible is a risk, which is higher here than with other people in need of credit. So sometimes debts are an obstacle to a loan.

Get a loan despite debt

One way to get a loan despite debt is to see that the old debt is paid off with a new loan. Especially when it comes to dealer loans, a further credit line can be made possible here. If these debts have only been serviced sometimes so far, then this amount can be paid off with the new loan. A

nother credit line that should actually be included is then no problem. But these debts must not yet be recorded in the Credit Bureau. If there are debts in the Credit Bureau, then only a loan from abroad can help, since there is no connection to the Credit Bureau. The banks will carry out other credit checks for lending. A private to private loan can also be taken out.