While many people are still reluctant to take short or long-term financial dependency on a loan, in the 21st century loans have become a common practice in the private and business sectors.
Take out a loan
The principle that many people still wrongly assume that only one “active” loan can be taken at a time is by no means valid. On the contrary, because having several current loans at the same time is part of everyday life for many people, even if this is usually not perceived directly. Especially when building a house, several loans are usually used at the same time, after all the house is financed by a loan, while other loans may have to cover other financial obligations.
Since a loan for building a house is usually invested over several decades, it is by no means a rarity that several loans are tendered to one person at the same time. Getting a loan despite a current loan is also not uncommon with regular income and a perfect Credit Bureau entry. In fact, all orders in online shops that are made by invoice are smaller microcredits with short-term payment terms. If a new loan is actually to be applied for from the bank, it pays off in advance for each loan amount in comparison.
Inform and reduce credit costs
The loan despite current credit and whether it is approved depends largely on the amount and creditworthiness of the borrower. Applying for a second or even third loan does not necessarily mean that all loans will continue to run consistently. Often, a new loan is sought on better terms in order to prematurely end old loans with poorer terms.
This process is called debt restructuring and is mainly used in the business sector, but is also available to private individuals. Regardless of whether the loan is used for debt rescheduling despite ongoing credit or is required for financing or repayment of debt, the possibility tends to always exist as long as the borrower has a regular income and there were no payment difficulties with the credit that was already running. A loan is particularly often used despite a current loan if a loan for building a house or buying a car is already running in the background.
Of course, the individual case always decides when applying for a loan, but there are various providers available to borrowers who will be happy to issue another loan if they are creditworthy. This second or third loan does not have to be requested from the lender where a loan already exists. Instead, borrowers can choose the provider with the best conditions themselves.