Credit despite debts
The question of whether a loan despite debt is possible, can not be answered clearly. It always depends on how high the debt is and what kind of debt it is. For example, it could easily be possible to take out an installment loan in spite of an overdrawn current account or credit line. A borrowing with negative private credit entries in the form of dunning or enforcement orders or a current personal bankruptcy is, however – not possible – at least in Germany. Lenders who claim otherwise are dubious.
An alternative to a German bank loan may be a personal loan or a foreign loan. Again, certain conditions must be met. Otherwise it will be nothing with a borrowing. Basically, the requirements for the different forms of credit are very different. If the income is sufficiently high, a loan can usually be granted much sooner, in spite of debts, than if the income is too low or absent.
Bank and savings bank loans
If you want to get a loan from your house bank or another bank based in Germany, the existing debt must not have led to a negative private credit entry yet. Very often a loan is demanded despite debts in order to settle the debts. These debts can be very different. Unpaid bills are possible as well as a covered account or an old installment loan. In some cases, a combination of several loans without the replacement of various debts is desired.
Regardless of how you choose to use a loan, you must always expect the bank to check very carefully whether you meet all the requirements. If this is the case, borrowing will in most cases be an obstacle. If you only fulfill part of the requirements, a loan is possible despite debts. Here, however, the bank or the savings bank will insist that you provide additional collateral. The provision of material securities is possible in this context as well as the improvement of the credit rating by a guarantor or by a second applicant. The Bank will be happy to tell you what you really need on request.
In general, it is advisable that you do not rely solely on the offers of your house bank or of banks in your immediate area when looking for a loan. Often, banks that do not have a local branch can score points with cheap offers. This could be the case, for example, if it is a direct bank or an internet bank. As a rule, these banks do not have a branch network but carry out all banking transactions online and from their headquarters. In this way, very significant costs can be saved. These cost savings benefit customers. For credit customers, this means that interest rates on such offers are often very low. A credit comparison can provide clarity here.
If you have found a loan despite debt that suits your ideas, you can submit the loan application on the Internet. If you opt for a branch bank or your house bank, you can also submit the loan application there. In principle, it would be very important that you have all the documents and evidence that can confirm your creditworthiness. As a rule, the bank will request a valid employment contract and the current income proof from you. In addition, you must duly and completely complete the Bank’s loan application. Once all the documents have been received, the bank checks the private credit information. If there are no negative entries, there is nothing to prevent a loan despite debt.
Only if the debts have already led to negative private credit entries, the loan application must be rejected in many cases. However, you should not give up prematurely, but can look specifically for alternatives abroad or in the private sector. Often you will find there and can take a cheap loan despite debt.
Foreign loans are characterized by the fact that the lenders do not request information from private credit and never report a granted credit there. This ensures the greatest possible anonymity, a fact that is perceived by many people to be very pleasant because they do not have any negative effects on creditworthiness.
A loan from abroad is in many cases a small loan. Often, however, a loan in the four-digit euro area can be granted. The main requirement for this is a fixed income, either as an employee or as an official. If you do not belong to one of these groups of people, you have only one chance of getting a loan despite foreign debts, if you can name a co-applicant or a guarantor for the loan. However, this person should not be in financial difficulties himself and must be able to prove a fixed income in any case.
For a foreign loan despite debts, the German citizenship, the majority of the age of 18 years and a permanent residence is required. Proof of this must be provided to the bank from which you wish to take out the loan.
The payment of a foreign loan can be made to your checking account. This is not a must. Many people expressly want the house bank to be unaware of this loan. This is not a problem if you name the bank an alternate account or if you want to get the loan by courier or postable. All these variants are possible without any problems. You can also choose several ways to repay the loan. You can transfer the loan installments yourself or have them deducted from your account.
Personal loans are often the straightforward way to get a loan if you have debts. This is particularly true when the loan comes from a person you know personally, for example because it is a friend or friend. Even if the borrower is a stranger, the conditions for loan repayment and repayment can be made extremely flexible. For example, you can arrange for the repayment of large sums of money if it seems cheap. On the other hand, it is often much easier than a bank loan to temporarily suspend repayment. However, you should never neglect the payment obligations. Contracts must be fulfilled. This applies both to the institutional and the private sector and even more so to a loan.