Everything is simple here - banks receive information from the Credit History Bureau. It reflects not only data on loans already issued, but also information on submitted applications and decisions made on them. In many ways, this helps creditors better evaluate potential borrowers and reduces the level of risk. But for the client, it can create additional inconveniences.
If you are trying to get a loan from several banks at the same time, you may hear reasonable questions when verifying applications – specialists will ask why you are doing this. Answer honestly. Misleading the lender is a deliberately bad decision. If you just want to choose the best offer with the lowest rates, then say so. Usually, such an answer completely satisfies the bank's security service.
Is it possible to take several loans from one bank?
Let us recall that the law only limits banks in issuing new loans denmark mobile database to clients with a high credit load. More precisely, it obliges them to take it into account. Otherwise, everything depends on the policy of each specific lender. One bank categorically does not accept issuing a new loan until the previous one is fully repaid. And sometimes it does not issue loans if less than 3-6 months have passed since the closure of the previous debt. Another bank is ready to issue at least 10 loans at the same time, as long as the client can service them.
In practice, most lenders do not set restrictions and focus only on the current state of the client. However, it is better to check this information in advance with the support service.
Pros and cons of multiple loans
Everything is individual. We will consider the advantages and disadvantages for people who take money from the bank consciously and calculate their strengths.
Main advantages:
The ability to get money when you really need it – even if you have an outstanding loan.
Refinancing potential - borrowing money on more favorable terms to pay off an overly expensive loan.
The prospect of increasing the total amount when the approved limit is not enough.
If we talk about disadvantages, the main one is the increasing credit load. That is why it is so important to correctly calculate your strength and take a new loan only if you will be able to repay it on time.