Yes and no. As a rule, you cannot easily top up a recently taken out loan because banks have set up a kind of lock for such cases. After a certain waiting period, however, it is possible to get a new loan amount from the bank.
In addition to topping up, there are other ways to increase your loan size.
Let’s take an example situation as a basis: three weeks ago, a borrower took out an installment loan of 5,000 dollars to renovate the lower floor of his home. In addition, he would also like to treat himself to a new dining area, a few great lamps and a new corner sofa. In the frenzy of the renovation work, the borrower realizes that he has made a mistake. The 5,000 dollars are not enough. He needs 7,500 dollars.
After such a short time, his bank will probably not increase his loan. If you need money again after a few weeks, it is a sign for banks so shortly after applying for a loan that you do not have your finances under control. So that you do not become over-indebted and the bank will get your money back safely, you will probably refuse to top it up. Most banks are blocked for six months until they provide you with additional funds. Then you can try it again.
What options or alternatives are there
However, the bank’s approach does not change the bottleneck of our example borrower. The borrower still needs 2,500 dollars more than planned. To increase your credit anyway, you have the following options:
- Take out a second loan: For example, you can take out another loan from another bank to close the funding gap. Your creditworthiness will be checked again for this. In this case, however, you should be aware that your credit check score can suffer and be reduced. Because if you take out two loans from different banks within a short period of time, credit check evaluates this negatively. At credit check it can be given the impression that you are living your life on a pump and that you are in a difficult financial situation. Therefore, it downgrades your credit rating.
- Debt the loan: You could also debit the insufficient credit and increase it by the missing amount. You always have a four-week notice period for consumer loans. You could thus trigger the insufficient credit with a new, higher credit. A debt rescheduling is particularly worthwhile if you have other loans – such as an overdraft facility – in progress. So you can put all liabilities on a single loan and then pay only one installment to a bank. A debt rescheduling of several loans often has a positive effect on your credit check, as it shows that you want to get your finances in order.
- Rethink your plans: A further and probably the most unsatisfactory alternative would be to rethink your plans and reduce them if necessary. Of course, you can only do this if you do not really need the loan. Our example borrower might think about whether it really has to be the expensive corner sofa or whether he can save on his renovation plans in one place or another? This alternative does not have a negative impact on your credit check, nor does it increase your debts with the bank.
So if you find yourself in a situation similar to our example borrower, you have a few options to get out of this situation. Our installment loan specialists will be happy to help you and find a solution together with you.