Car loan despite debt – even in difficult cases

If you want to take out a car loan despite debts with your house bank, you have to make an appointment in your bank. For a consultation with the bank’s customer advisor, the bank customer must bring a valid ID and, if possible, an offer from a car dealer.

If you want to buy privately or on the Internet, you can present the sales advertisement. The customer advisor first obtains credit bureau information and calculates the creditworthiness of the bank customer. With a credit bureau without negative entries and sufficient creditworthiness, the applicant can count on a positive credit report. With poor credit conditions, the house bank has two options.

Either the bank rejects the loan request or additional loan collateral is required. A large number of lenders accept either various property guarantees or personal guarantees for a car loan despite debts.

Car loan from the dealer – financed by the car bank

Car loan from the dealer - financed by the car bank

In the meantime, many car dealers are luring car buyers into their salesrooms with various financing options. The auto loans are provided either by the Group’s banks or by cooperating financial institutions.

In order to serve a larger number of potential buyers, these banks always offer several loan options. This usually includes an installment loan or balloon financing. The car buyer can make a down payment for both loans. This reduces the loan amount and improves the loan terms.

If the car buyer chooses the installment loan, relatively high monthly installments are due over the entire term of the loan. The car is the property of the borrower upon payment of the last installment. If the car buyer chooses balloon financing, the monthly loan rates are lower. For this, a high final rate is due at the end of the financing.

The car buyer can either replace this final rate or finance it with a new loan. Car buyers who want to apply for a car loan despite debts to a car bank must have a good credit rating and a positive rating.

Car financing on the Internet – loan comparison on Cream Bank

Car financing on the Internet - loan comparison on Cream Bank

A car loan despite debt can also be applied for from an online or direct bank on the Internet. These banks provide installment loans with very favorable loan terms. Since the offer on the Internet is very large, the search for a loan offer becomes very difficult. Consumers can find help with Cream Bank.

The credit portal cooperates with numerous online and direct banks. Installment loans from 500 to 120,000 USD can be compared on the Cream Bank comparison pages. Loan terms of one to twelve years are possible. A comparison calculator is installed for a simple search on the portal. Consumers enter the required loan amount and the loan term in this calculator. Car financing should be selected as the intended purpose.

Immediately after this entry, numerous loan offers appear on the comparison page. For a quick comparison, the loan offers contain information such as:

  • Bank name
  • product details
  • monthly rate
  • Borrowing rate effective APR
  • Example according to Astro Finance

After choosing the bank, the loan can be applied for immediately.

Credit marketplaces – financed with private money

Credit marketplaces - financed with private money

Not every consumer with poor credit conditions is served by the banks. This is often due to the creditworthiness. For example, anyone who needs a car loan despite debt is in good hands in a credit marketplace. The loans come from private donors and are made available for free use. In any case, credit bureau information will be obtained for the application. This information must not contain any hard negative features.

Arrest warrants, affidavits, or personal bankruptcy are noted as hard features. The so-called private loans from 1000 to 50,000 USD are offered on the Cream Bank credit marketplace. Applicants can choose terms from 12 to 144 months. The desired loan is applied for online. Personal data and monthly income and expenses are entered in the application form. Based on this information, private donors can submit a loan offer.

As soon as the applicant has decided on an offer, a credit contract can be drawn up.

Loans with and without credit bureau – classic intermediaries

Loans with and without credit bureau - classic intermediaries

Consumers can also contact a reputable credit broker with a credit request. Credit agencies are brokers. The financial service providers broker installment loans from banks in Germany and abroad to consumers. Loans from loan brokers are offered with and without credit bureau.

The installment loans are usually offered for free disposal. If a car loan is applied for despite loan debts, an applicant usually has to be able to offer additional loan collateral. After obtaining the credit bureau information, a guarantor or a second borrower must also be provided. If the applicant wants a loan without credit bureau, the car must not be more expensive than 7,500 USD.

Higher amounts are not offered. In addition, the applicant must meet very high credit requirements. These requirements include a place of residence in Germany and a permanent employment relationship. The monthly income must be above the garnishment exemption limit.

If these conditions are not met, a car loan is not possible despite the debt.

Apply for a car loan – compare lenders

Apply for a car loan - compare lenders

Even if a consumer is in debt, car loan is not impossible. Depending on the credit bureau and creditworthiness, loans are provided by branch, online or direct banks. The credit offers of the car banks should also be considered by consumers. A credit comparison can clarify the credit conditions of the different banks.

A car loan in spite of debt is also available from loan agencies and credit marketplaces. These loans should be examined carefully due to the higher costs.

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