The need to obtain several credits in different banks can arise under different circumstances. Perhaps you have found a profitable credit program, but have not managed to pay off the past credit yet. Or you want to repay the old credit at the expense of the new one. In any case, it is worthwhile to know what needs to be done to get an additional loan from another bank, when you already have one valid credit agreement.
Why Do Banks Not Like to Work with Clients Who Have Existing Credits?
The basis for the bank’s decision to approve or refuse a loan is the solvency of the potential borrower. It is estimated by the size of the monthly income of the client. If the income does not reach the required level, then the borrower is offered a smaller credit or even denied a loan. Also, employees of the bank request information about the credit history of the borrower in the credit history bureau.
If it turns out that a person who has applied to a bank has an existing credit, in most cases a client is being refused due to the fact that such borrower has a reduced solvency due to the needs to pay the previous debt. If the borrower plans to pay his old debt from the new loan, then it can be regarded as transferring the unpaid debt to the new bank. Despite these difficulties, there are ways out of this situation.
How to Get a New Credit Having Another Debt
Many say that getting a loan in such case is very problematic and almost impossible. But the practice shows that there were numerous situations when people managed to take a credit, despite the presence of a previous credit, or even despite being blacklisted.
- Fill out a questionnaire for a new loan without hiding any information.
- Take the ID or passport as the main identity document. Other potentially necessary documents may include driver’s license, pension insurance certificate, references from psycho- or narcological dispensaries, attestation from workplace, etc.
- To avoid rejection, it is recommended to apply for a pledge of some value. Thus, the bank receives an additional guarantee in the return of the full amount of the loan issued.
- If you do not have any valuable property, then the bank is entitled to ask you to indicate two guarantors in your application, who, in case of non-payment of the loan, will be liable for the credit issued by the bank.
- All bank applications for credit are considered on an individual basis.
The bank will decide whether to grant a loan to a person who already has a payment debt, or not, based on the information and guarantees provided. All these will be checked, and after some time the financial institution will notify you of its decision.