From this point of view, needing a car loan despite debt is not a special case. A typical example of this would be the loan requirement directly after building the house. People who have just built have little financial scope for “extras”. An unexpected total economic loss of the end-of-life vehicle is also typical.
The vehicle fails, although no reserves have been created for the replacement. Depressive payment obligations further restrict the scope. Nevertheless, the car loan does not have to be a problem despite debt. Existing loans do not automatically have a negative impact on creditworthiness.
Factors – creditworthy despite ongoing loans
Basically, the credit rating for lending is made up of different building blocks. First, of course, the amount of net income. When it comes to higher credit, net income should always allow sufficient attachment. Job security is also important.
The permanent employment contract ensures income and thus solvency in the future. A very important aspect for the car loan despite debt is the positive budget surplus. Basically a simple comparison of the regular running costs with the income. Despite existing debts, the bill has to work out so that the money is available for payment in installments.
Another positive factor is that the vehicle represents a real asset. It supports the securing of loans within the framework of the lending limits. Last but not least, the credit bureau Score affects the credit decision.
Score – how do existing loans work?
credit bureau collects data on the payment behavior of citizens. Basically, she knows every step – from cell phone contracts to non-contractual payment behavior. This is the percentage of the score that everyone can influence. The second aspect of the credit rating relates to comparison groups.
For the car loan despite debt, the overall assessment of the risk is rather positive. People who are in debt but service them regularly and on time are trustworthy. Looking back on their personal payment history, they prove that they are worthy of an additional loan. As a rule, they shoulder the further payment obligation “without complaint”.
A look at the comparison groups shows a similar picture. For this reason, existing, regularly serviced debts have hardly any effect on the score. They are available and must be taken into account in the budget calculation. Basically nothing more.
Vehicle loan despite debt offers
Loan offers for vehicle financing are hardly limited by the fact that there are existing liabilities. The vehicle loan remains possible despite debts from the car dealership. However, it is usually more sensible to opt for a car loan despite the debt of a third-party bank. The advantages of purchasing a new car are the cash payment discount.
Depending on the model and manufacturer, up to 30 percent discount is quite realistic. In the case of car loans for used cars, it would be the savings volume to buy a comparable vehicle from private customers that achieves the maximum savings effect. In addition, the used car loan from the network is often much cheaper than the dealer’s offer. Finally, the manufacturer’s interest rate sponsorship is no longer required for used vehicles.
When will debt become a problem?
Notwithstanding the fact that existing debts do not immediately depress the score, this is not a guarantee of creditworthiness. It can be problematic with car loans despite debt. As already mentioned, the score falls in the event of late payment. Depending on the degree of misconduct – hard or soft characteristic – the score is reduced.
But adversity can also threaten from another side. Each person can only afford a certain amount of credit. At some point this limit is reached. At the latest, when the budget surplus is no longer high enough, it “gets tight”.
In other words, there is no safe margin to pay the installments. In addition, the comparison groups can also cause problems. An example of this would be divorce. In the divorce phase, the entire financial situation cannot be calculated future-proof. Both the comparison groups in the score and the empirical values of the credit institutions speak against the car loan despite debts in the separation year.
Problem solving – despite debt car loan
Before it comes to finding ways out of the credit crunch, everyone should answer a general question for themselves. Does the car loan really have to be at this point?
Finally, a professional neutral credit assessment speaks against the safe portability of the loan. Only if the car loan is inevitable despite debts and at your own discretion is there a very easy way out. Most direct banks allow car loans with a second borrower. Basically, the solvent second applicant balances the real recognizable credit risk.
He is fully liable for this materially and with his good name. The alternative to this can also be easily found in the loan comparison. Finally, it would be possible to switch providers to a “risk loan”. Advantage, no second creditor would have to sign it.
The noticeably higher interest rates are a disadvantage of this variant.
Car loan with bad credit bureau and debts
If the credit bureau is too heavily preloaded, regular car loans are usually ruled out. But the alternative to switching to risk credit remains. Both banks and P2P loan portals offer car loans despite debt despite credit bureau.The most important provider of bank credit from Germany is Cream Bank.
Your “ extra credit ” is quite possible despite credit bureau. In addition, loans from private donors are eligible for the desired car financing despite debt and credit bureau.
If the credit risk is manageable, “ credit-private ” would be interesting. If the situation is really not rosy, but the car loan is inevitable despite debt, Lite Lender would probably be the more interesting contact.
Incidentally, all the providers mentioned allow credit protection via the vehicle.
Conclusion – car financing despite debt
In most cases, existing debt will not lead to car loan problems. But not only if the applicant can afford his car loan despite debt. In addition, he must not have made a negative appearance at credit bureau. A problem with car loans can be solved through a second borrower in a non-bureaucratic way.
His good credit rating then guarantees the loan. The alternative is risk loans. Both from banks and through P2P credit, the desired car loan can be approved despite debt.