It seems quite dull and absurd to borrow another loan even if the previous credit obligations have not yet been settled, not to mention the borrowing of another loan to repay the previous loan. Such action only shows the absolute irresponsibility of the borrower, the inability to plan his finances and time. However, in reality, getting a new loan when the previous credit has not been settled is practically impossible.
- First of all, the majority of lenders already determine that the loan will not be issued if the potential customer has outstanding credit commitments.
- Secondly, if the outstanding credit liabilities damage the credit history, but as we know, in the case of damaged credit history, most creditors do not issue credits. Of course, in this case, it is imperative to assess whether outstanding credit obligations are current and still in the process of repayment, or whether they are overdue and neglected, and the borrower is included in the debtors’ list. Current credit liabilities are not taken into account provided that the borrower is creditworthy, that is, its income is adequate for the full and timely repayment of two credits.
Outstanding credit commitments, which are neglected, are considered a serious obstacle to new credit.
This behavior of creditors can be explained logically because they simply do not want to ” climb on the same rakes ” to which another creditor has already climbed, namely, having trusted and lent a loan to a borrower who is irresponsible, dishonest, untrustworthy and how it looks also insolvent. Non-repayment and delinquency of any loan leads to greater or lesser financial losses for the creditor, which is why creditors choose their potential customers very carefully to avoid disappointment. However, not all lenders treat their potential clients as responsibly and scrupulously and also give credit to those whose credit history and creditworthiness are not positive.
In addition, lenders who are not interested in the credit history and financial position of their potential clients are also not interested in the purpose for which the loan is provided. From the foregoing it can be concluded that the loan can also be received by a person who has outstanding debt and wants to use the loan to settle it. If a specific example of such creditors is to be mentioned, they are lenders of fast credit. Of course, it cannot be ignored that in such situations, all quick credit lenders will undoubtedly issue a loan, because when the effect of the laws and regulations on non-bank lending is in force, a large part of non-bank lenders will also start setting rules for credit history, creditworthiness and lending targets of potential customers..