Take out a loan
You usually take out a loan if you want to use it to bridge a current financial bottleneck. Most of them are important investments that should be made with them and that cannot be postponed until the money needed for them has been saved together.
But sometimes a loan is also taken out so that existing debts can collapse. This step is intended to avoid a debt trap and reduce the cost of the debt. And as a rule, it is not a major problem if an existing loan is to be increased.
However, the situation is somewhat different for loans that are free of Credit Bureau. Adding a Credit Bureau-free loan is not as easy as it is with a regular loan. Here you have to take a closer look and compare to really be able to carry out this step.
This is how topping up works
Anyone who has borrowed money without a Credit Bureau query knows very well that this is not always that easy. The path to the right lender is not only rocky, but also quite expensive at times. Processing fees, high interest rates and fixed credit terms make it difficult for borrowers. Despite all this, they are very happy that someone is helping them financially and granting them a loan. The house bank or another traditional credit institution would not do this without Credit Bureau query.
Topping up a Credit Bureau-free loan means that you have to look very carefully here, where this is possible at all and how the conditions, interest and costs for such an action are stored. Not an easy undertaking, since experience already shows that Credit Bureau-free loans are quite expensive.
You should therefore consider carefully whether an increase is really needed or whether there is another way. If this other way cannot be found, it is advisable to first ask the credit institution where the current loan was signed.
Perhaps there is a possibility that the loan amount will simply be increased. Without major checks and processing costs. You should make sure that the interest rate for this “service” does not get higher. You should also avoid doing this step through an intermediary. Direct contact with the bank is likely to be the cheaper option.
Topping up a Credit Bureau-free loan also means that you have more debts afterwards. So you should see that the increase does not increase the monthly charge, but maybe extends the term. So in the end you pay more money for the loan, but you can remain stable in your monthly plans and run no risk of bottlenecks.