Anyone looking for a loan always turns to a bank first. But what if a loan already exists? Do the banks say yes to a loan despite a loan?
When a loan has to be paid off
It is not uncommon for there to be a need for capital, even though a loan has to be paid off. Whether the banks agree to grant another loan depends on the amount of the balance, the borrower’s income and credit checker information. As a rule, banks tend not to issue new loans, but to increase existing ones.
This can prove to be an advantage for banks if interest rates have increased in the meantime, because that increases the bank’s profit. However, the opposite can also be the case, namely when interest rates have fallen. Then the borrower benefits from this new development.
It doesn’t have to be the same bank
The consumer is not forced to go to his house bank for a loan despite a loan. You are free to choose another bank. This can be a branch bank, but also an internet bank. In the latter case, the loan seeker is even better off because the online banks generally have lower interest rates. Nevertheless, it should be pointed out here that the online banks also report a loan to credit checker and make a query beforehand. So it can be seen that another loan has been taken out.
Credit despite personal credit
If you don’t want to contact a bank, you can also use the new portals. Here, private individuals have come together to increase their money by granting loans. It is not the bank that determines the interest rate here, but the consumer who is looking for suitable donors. For investors, this means higher returns because more interest is paid here than with the usual forms of investment.