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Car loan despite existing credit – at the house bank

Car loan despite existing credit - at the house bank

When it comes to a loan request, the house bank is still the first point of contact for many consumers. There is almost always a special relationship of trust with this bank, which is usually a Cream Bank or Best Bank.

Car loan done in no time despite existing credit

A car loan despite the existing loan can be easily requested from the house bank. In order to get this loan, a consultation in the branch must be arranged. An ID must be brought to the consultation with the customer advisor. Applicants who are not from the EU also need a residence permit. If possible, an offer from a car dealer should be presented. If the first loan comes from another institution, the loan contract should also be presented for consultation.

The customer advisor can calculate the creditworthiness based on the existing data from the computer and the documents brought along. credit bureau information will also be obtained. If the credit requirements are not sufficient, there is often a risk of rejection. This loan cancellation can only be averted with additional loan collateral.

Worse credit conditions – loan collateral helps

Worse credit conditions - loan collateral helps

Consumer credit requirements play an important role for lenders. These requirements are different for all financial service providers. In the case of an installment loan, protection is usually always provided via the salary. This is possible with most lenders up to a loan amount of 10,000 USD. Additional loan collateral is required for higher loans. These collateral include property or personal collateral.

A car loan despite having an existing loan is, for example:

  • with fixed savings,
  • Savings certificates,
  • high quality coin collections real estate

secured. When buying a vehicle, lenders can also request registration certificate II as security. If consumers are unable to offer property security, personal security is an option. Many lenders accept a guarantor as personal security. Usually acquaintances or relatives with high liquidity are accepted as guarantors. If the guarantor is approved by the bank, a joint and several liability is usually contractually agreed.

If there is a credit default, the lender can assume liability for the guarantor without having to wait for judicial dunning proceedings.

Finance a car – car banks

Finance a car - car banks

All car dealers now offer car financing for their vehicles. The brand dealers are their own car bank.

For used car dealers who are not tied to a brand, a cooperating bank takes over the financing. A car loan despite existing credit is then offered in the form of a normal installment loan or balloon financing. At the auto bank, too, a positive credit decision depends on the applicant’s credit requirements. The applicant can make a down payment for both types of financing.

If a car buyer chooses an installment loan, relatively high loan installments are due every month. At the final installment, the vehicle becomes the property of the borrower. With balloon financing, the monthly credit installments are lower. This results in a relatively high closing rate. This last installment can either be paid or further financed. Some car dealers also offer the return of the vehicle.

For this reason, balloon financing can be compared to a leasing transaction.

Online car financing – direct banks

Online car financing - direct banks

Car finance is also offered by online and direct banks on the Internet. The installment loan is offered as a form of financing. The lenders provide an easy-to-understand online form for the application. The applicant first enters their personal data and date of birth in this form. The banks use this information to obtain credit bureau information. If the credit bureau information is positive, the applicant will be sent a preliminary loan approval via email.

In the event of negative information, a cancellation is made immediately. No credit cancellation information is provided. The information from the loan application must be documented in writing. The applicant sends his or her last two or three proofs of salary to the bank.

These documents are sent either electronically with an upload on the computer or by post. In online and direct banks, the identity is determined using the Postident or Videoident procedure. Since a car loan represents a high monthly burden despite the existing loan, only applicants with sufficient creditworthiness are accepted.

Cheap car finance – loan comparison on Lite Lender

Cheap car finance - loan comparison on Lite Lender

Comparison portals on the Internet offer their help so that consumers can easily find a car loan despite the existing loan. A credit comparison is also possible on the Lite Lender credit portal.

Banks are cooperating with Lite Lender, providing loans from 500 to 120,000 USD. Loan terms of 12 to 144 months, i.e. up to 12 years, can be agreed.

So that the search for a cheap loan offer is successful, the portal operators provide a loan calculator on their websites. For a loan comparison, the applicant enters the net loan amount and the desired term in the calculator.

Vehicle financing should be entered as the intended purpose. As soon as the entries have been made, numerous loan offers from banks that are eligible for a car loan appear on the comparison pages. The loan offers contain the same information for easy comparison. This includes the bank name, the product details, the monthly rate, the borrowing rate and the annual percentage rate.

The application can be made immediately after forwarding.

Apply for a car loan – compare loan offers beforehand

Apply for a car loan - compare loan offers beforehand

A car loan despite existing credit is available for almost every applicant if the credit conditions are positive. The cheapest car financing is usually offered by online and direct banks on the Internet. A simple comparison is possible on a credit portal. If you do not have good credit conditions, you can contact credit agencies or credit marketplaces.

However, the loan offers from these lenders are always somewhat more expensive.