Some consumers keep asking themselves whether you can top up a loan. The answer is simple, because if the same conditions apply as for the first loan, then there are no problems with the increase. Even more likely is a loan commitment, if the term has been running for some time. The bank was able to see over time whether the customer had always paid his installment on time.
Increase the credit
Whether and to what extent a loan can be increased depends on the respective bank and the creditworthiness of the customer. If the installments for the previous loan were always paid on time and nothing changed in the overall economic situation of the customer, then an increase is possible. The procedure is simple. A new loan is taken and the remaining loan amount paid.
It is not simply the credit increased, but it must be requested a new loan. However, this can be expensive, because many banks require a prepayment penalty for early loan repayment. That could be the case with a credit increase. If you want to know exactly, just look in his credit documents. This includes a prepayment penalty and the amount to be paid.
It is especially the online banks that no longer apply this practice. Therefore, it makes sense to search the Internet for a bank with better terms. The customer is not obliged to increase the credit with the previous bank.
Take a loan from another bank
Ultimately, it depends on the creditworthiness of the client, but it is possible to borrow from another bank. Although the bank checks the creditworthiness, if there were no difficulties with the repayment, then a commitment is likely. Whether this is the right way depends on the required loan amount. For a second loan, interest also accrues and installments must be paid to the bank.
This inevitably leads to a double burden on interest and installments. If you want to top up the loan under these conditions, you’re better off. There is guaranteed to be a bank on the Internet through a loan calculator that offers loans at particularly favorable terms.
When the personal and economic situation has changed
Completely pointless is a request for an increase if the personal or economic situation of the borrower has changed. Suppose that in the meantime he has become unemployed. Since the installments were always paid on time, this fact is not known to the bank. But who wants to increase his credit, is again subject to an examination by the bank consultant. At least now it is noticeable that the customer is unemployed. A loan commitment does not exist despite the punctual payments and a still good credit rating.
Another problem could be a divorce. If the previous credit agreement was on both spouses and now the credit is to be increased, then the bank is likely to cause difficulties. In such a case, only one borrower would be added to the contract. But the salary would have to suffice. Previously, both incomes were counted.
So there are cases in which an increase from the outset is excluded. Basically one should remember that with a new credit all criteria must be fulfilled, as with the first credit. If there have been drastic changes during the credit period, then a commitment is questionable.