If you want to take out a second in addition to a current loan, it sounds at first glance to be an uneconomical act. But the thought is wrong. It’s not uncommon these days to have multiple loans. As soon as you meet the respective loan requirements and pass a credit check, there is nothing standing in the way of a loan despite a loan.
In principle, you can take out as many loans as you want in Germany – there is no limit to it. Of course, some prerequisites have to be met for this, which are similar to the general credit requirements. So you have to have a primary residence and bank account in Germany in addition to the age of majority. An unlimited employment relationship and a positive credit bureau information must also be given.
As has been noted, these requirements must apply to all loans: both the first and all other loans. However, what can be different are the conditions under which you can get another loan.
It is often the case that a further loan is only granted under poorer conditions. It is because, for example, with two loans you have to repay loan installments twice as often, so the risks that you cannot pay it back increase by two. This is taken into account and therefore makes another loan more expensive.
What can make a second loan more expensive are the gaps between two loans: if another loan is taken out soon after the first one, the conditions are worse than if the first one had largely been paid off.
What to do if the banks do not grant another loan
Of course, the banks may refuse another loan. The reasons for this can be due to insufficient income as well as negative credit bureau entries if, for example, an existing loan with installment payments was not fulfilled one or more times or was delayed. You don’t have to accept the rejection by the banks, after all, there are now several ways to get the desired loan amount. For example, a guarantor who is liable for a loan despite a loan can significantly increase the chance of a promise.
Private loans or credits through intermediaries are somewhat more expensive than with banks, but are often also given when these are in conflict and can therefore be seen as a real alternative to bank loans. If you need another loan for consumption, be it a car or furniture, you can ask for a loan or hire purchase directly from the seller.
Another loan always means that you have more payments and obligations. Therefore, it is advisable to always consider whether the reasons for an additional loan make sense. If you decide to do so, you should always make sure that you remain solvent. Sometimes it helps to reduce costs in the private sector, such as canceling (newspaper) subscriptions or old, unusable insurance contracts.
Conclusion: Having multiple loans is not a rare phenomenon in Germany. If you have sufficient funds and if you meet the requirements, there is nothing to prevent you from getting another loan. If you get a loan cancellation from the bank, you can inquire at alternative loan providers whether you could get a loan there. The following applies to all loans: The meaningfulness of a loan must be carefully considered.