The favorable interest rate environment drives many to borrow. Not only those who have no credit, but also those who already have a loan. The big question is, can those who already have credit get credit? Can a person have more than one credit at a time? Creditworthiness is primarily determined by the bank’s verifiable net income. Credit institutions only accept officially verifiable income. It is in vain to earn multiple times your verifiable income if you cannot prove it with official documents. Without certification, financial institutions would not be able to accept.
Can a person have more than one credit at a time?
Types of income accepted by banks:
- Primary income: Primary income must exceed the minimum amount specified by the bank. This is usually the current minimum wage, but there are banks where the lower limit is higher. Primary income includes wages, old-age pensions and permanent invalidity benefits. Foreign or cash pay is also acceptable, in the latter case a NAV income certificate is required.
- Secondary income: This is counted when the amount of primary income reaches the bank’s minimum. This can be GYES, GYED, family allowance, bonus etc. The amount of the previous income determines the maximum amount of the loan. If you have a co-debtor, the income of the persons in the credit agreement is added up, but in this case too, one of the income must reach at least the minimum wage.
How much of your income can be borrowed?
Certified income determines the maximum amount of the monthly repayment. The ceiling is set by the law of JTM (Income Proportional Rate Indicator). Credit institutions are free to deviate from this downward, of course not upwards. The JTM quite accurately shows how much of your certified income can be used for loan repayment. If the borrower already has a loan, it will be taken into account when considering a new loan application, and even the credit line will be taken into account at a rate of 5%.
The interest period of the chosen loan is also important. The interest period is the period during which the interest rate of the loan, and hence the monthly repayment rate, cannot change, so the longer this period, the more predictable the payment obligation.
How much credit can a person have at one time?
A person can have up to 2-3 credits at a time, provided that their income can cover their monthly repayments. If you want to add another to your existing mortgage loan (s), it may be difficult for home mortgage banks to reluctantly lien on each other. If you borrow one more for your existing mortgage loan, you either claim it from the previous bank or require a larger amount from another financial institution to redeem the first loan, so you will continue to contract with one bank later.
In the case of a personal loan, the above problem does not exist, as they do not have real estate collateral, the criticism is purely income based.
When it comes to redeeming a loan, the JTM rule also applies to this. Namely, if the loan purpose is explicitly a redemption of a loan, the bank will not take into account the repayment of the loan payable when assessing its income, since it will not have to be paid later.