Car loan with current credit – in difficult cases

If it does not work, consumers often do not find out the reason for rejection. If the bank closes the file, it saves the work of explaining the “why”. A summay is on

A car loan with a current loan is only a problem if creditworthiness is limited. In most cases, lending works very easily.

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This is how bad credit comes about

This is how bad credit comes about

In addition to monthly income, payment behavior also plays a role in creditworthiness. The credit rating can provide information about how seriously the loan seeker takes his bills.

Car loan with current loan – even at a low rate.

If reminders keep coming up, it will be difficult to get a car loan with a bad credit rating. There are different credit bureaus in Germany, so the bank will find out about the poor credit rating. The most well-known is the credit bureau, which provides information that is important for the credit check.

Too many credit cards, reminders, too frequent bank changes as well as attachments are negative criteria. A loan paid is a positive entry. Whether the bank “waves through” the credit request depends on the credit risk. There is no point in letting your charm play. The bank does not evaluate the personal impression, only facts. However, a weak credit rating does not always automatically mean that a car loan is impossible with a current loan.

Weak score – not always a reason for rejection

Weak score - not always a reason for rejection

When asking credit bureau, the bank will consider whether the applicant’s creditworthiness is sufficient. With a high car loan with current credit, the loan rejection is likely.

If the loan amount is manageable, the risk is reduced. The salary is very important because it is the opposite of current expenses. In a reasonable relationship between income and expenditure, credit is not a problem despite current loans. Credit collateral also plays a role in the decision.

If the borrower has a bad credit rating due to a bad credit bureau or a low income, the additional credit protection usually helps. Anyone who pays bills in advance that are noted by both credit bureau will also improve the score.

Banks want to be safe – loan collateral

Banks want to be safe - loan collateral

Loan guarantees are not required for every loan. However, if a car loan is taken out with a current loan, the bank can certainly require a loan security.

After the credit check, the bank decides whether:

  • so she approved the loan
  • requests additional collateral
  • or rejects the loan application

The credit security that awaits you can vary widely. Standard bank collateral is usually income. The salary slips prove the income. If that is not enough as security, additional credit security may be required. This can be done, for example, through the guarantee of a solvent guarantor. For a car loan with current credit from the car dealer, a minimum down payment may also be required.

This basically reduces the loan amount. It would normally be 10 percent of the purchase price. Most credit institutions require the vehicle registration document as security. This will remain with the bank for the duration of the loan.

This means that the car can be used, but cannot be sold without approval. Banks prefer residual debt insurance as protection.

Since this is expensive, other collateral should be used.

Car Loan – Where To Get Cheap Loans?

Car Loan - Where To Get Cheap Loans?

Auto banks advertise a car loan with current loan with zero percent financing. The customer has hardly any room for negotiation, so that the vehicle price cannot be shaken. The interest-free loan is also not offered for every model and vehicle age. As a used car, interest-free credit is practically impossible.

With a so-called balloon financing, the borrower should be careful. The rates are very small, but the final rate is all the higher. It is not always possible to pay the final installment of 5000 USD or more in one month. Third-party banks are often more suitable to take out a car loan with a current loan. Even if the interest rates appear higher, the borrower benefits. With the loan from a third-party bank, he automatically becomes a cash payer at a dealer.

So the car buyer easily achieves a high discount on the purchase price. This means that purchases are almost always cheaper overall than with zero percent financing.

Car loan with current credit – vehicle purchase

Car loan with current credit - vehicle purchase

Even if the car loan is to be taken out quickly with a current loan, it should be well planned. After all, it is almost always a higher loan amount. The purchase of the vehicle should be well planned. Spontaneous purchases mostly turn out to be a loss.

In addition, the vehicles are always compared. For this purpose, several dealers should visit and also look on the Internet. When the vehicle price is fixed, you should ask about discounts. If the dealer gets the money immediately, almost everyone will give a discount.

The loan itself comes directly from a loan comparison. Taking out car loan online is a snap. The money is usually available within 1-3 days. When applying for a loan, car loan applications from the Internet often surprise with particularly low interest rates.

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