Additional financial resources are often required after borrowing, for example due to unpredictable repair costs for the car. A credit increase would then be appropriate for this. In some cases it is also a good idea to consider debt restructuring. If you find that you get better conditions from a provider, you save a lot of money. However, there are a few points to consider if you want to top up a loan.
Credit increase or debt restructuring – which variant is the better one?
If you want a loan, you should consider that there must be a time lag between the old loan and the new loan. The interval should be at least six months. In addition to predictability, banks also rely on reliability. If the customer asks for a loan again after a short time, banks ask themselves some questions. Why does the borrower need money again when he has just received a loan? For the bank, this can be an indication that financial solidarity is lacking. Anyone who inquires about a credit increase after the six months has a better chance of being approved.
Requirements for another loan
- The income must be right
If the income has not increased during the last credit request, the creditworthiness must be checked again. After deducting all costs, income must provide sufficient financial scope. The monthly charge should not increase too much with an increased credit rate. The credit rate can then possibly be adjusted with an extended term. This, however, makes the loan more expensive, but reduces the monthly charge.
- The creditworthiness is checked
If a credit increase is desired, a new condition or credit request is made to the lending bank. In order for it to be successful, the credit rating should not have deteriorated. For the borrower, this means, in addition to the sufficient income, a clean Schufa, the bills should always be paid on time and thereby avoid that amounts are attached to the account. Payments to a collection agency, which can be seen from the account statements, also have a negative effect. Borrowers who have their finances under control and are a “good debtor” have the best chances. Borrowers should know that good creditworthiness is good terms when it comes to top up credit.
Debt new loan or existing loan?
Instead of increasing a loan, borrowers have the option of taking out a completely new loan and rescheduling the old loan. Borrowers should focus on this process when the new loan brings better interest. This allows borrowers to save several hundred or thousands of euros. If you are still paying an old loan, you should find out about a cheaper interest rate. If the term is then adjusted to the financial situation, borrowers often get more money on a loan, which gives them greater financial scope every month. Before borrowers choose a lender, a loan comparison should be made first. This enables the borrower to determine exactly how much savings will result from increasing the loan.