Today, a car is hard to imagine everyday life without. It is used almost every day to get to work, to drive children to school and leisure activities, or simply to be mobile and independent.
If the purchase of a new vehicle is about to begin, it usually means that financing has to be found, as no immediate payment is possible from the available funds.
Often a car loan must be found despite credit, because there are other liabilities. In this case, there are several possible solutions, which should be considered according to the individual situation.
Car loan despite credit without problems
Basically, there is nothing against taking a car loan despite credit, if certain conditions are met. The regular monthly income should be so high that both obligations can be easily met and should not be negative in the credit bureau.
If these points are met, a car loan can be made in the house bank, the relevant auto bank or another financial institution despite credit, which is then usually approved.
If there is already a current loan, however, it is also worth considering whether one does not opt for a pooling of liabilities. This would mean that the new car loan will be converted into a contract with the current loan.
In this way, there is only one loan, you pay only a monthly installment and only one creditor agrees. Of course, this option must be examined in the case in question and the bank must approve the project, but it would be very beneficial for the debtor.
Car loan despite credit difficulties
The situation is different if the income is not very high and / or there are already negative entries in the credit bureau. In these cases it is more difficult to find a good solution. One should first check whether a rescheduling with the credit institution is possible, in which the current loan is already paid.
In the refinancing then the car loan could be involved. If the term is extended, the installments remain affordable and the ability to pay is not immediately jeopardized. For the solution, it is advisable to have a conversation with the appropriate bank and to describe exactly how urgent and necessary the purchase of the new car is.
An account of one’s own financial situation can be very helpful, as it proves that one endeavors to fulfill the obligations.
Another possibility is the car loan despite credit at a car bank. In general, these are a bit more accommodating in lending, since the vehicle remains the property of the bank until the final payment and thus provides greater security.
Should additional collateral be required, some traders, especially long-term customers, are also prepared to take on guarantees. The disadvantage with this variant is that the car dealers do not grant an additional discount on the vehicle price.
In summary, it can be said that a car loan is usually possible despite credit. However, you should be aware that it is an additional burden. For this reason, one should be willing to compromise on the choice of vehicle (possibly a used car prefer) in order to keep the purchase price as low as possible.