Are you looking for low-income credit but always fall on deaf ears? Neither the house bank nor an online offer can be approved with your income amount?
This is exactly the situation facing pensioners and even many people who work full-time. We want you to have your loan request fulfilled. You can find offers in the connected credit comparison. Information given in the text leads you to additional providers.
What is certain is that credit can be granted to anyone who can demonstrably repay it. However, restrictions cannot always be avoided.
Low income credit – difficult framework
Political framework conditions increasingly determine who is creditworthy in Germany. In many cases, the problem of getting a low-income loan is not due to your own negligence. Credit crunch is an impact of past reforms and the USD crisis. Credit institutions should only approve loans if the repayment is absolutely certain.
Of course, no bank lent money in the past if it was not convinced that the borrower could repay it. But, unlike today, the human factor was one of the decisive factors. Customers and consultants had known each other personally since early childhood. The clerk knew his “choir boy” and knew who he could turn a blind eye to with impunity.
Most computers today use the score to decide who is creditworthy. The software automatically refuses low-income credit if the household bill does not work or if there is insufficient evidence of an attachable income. In contrast to net wages, the seizure allowances have continued to increase. In principle this is good, only the net income has not grown.
Attachability – benchmark for many credit providers
Illustrative examples of problems with regular credit are provided by retirees. The average pension in Germany is just over 1,000 USD. This is still covered by the health insurance and long-term care insurance. If you are unlucky, you also have to pay taxes. In spite of all goodwill, the bank is unable to determine any attachable portion of income from the remaining residual pension.
The current garnishment exemption limit for individuals is 1,079.99 USD. The situation is similar for people who work in the low-wage sector. For them, too, it is almost impossible to prove a attachable share of income through their work. In the case of families with children, the attachability is even more pronounced.
The clerk still has scope for regular credit at the overdraft facility. He can grant a small overdraft facility without being subject to attachment. Another alternative for low-income credit, as a regular installment loan, is offered by a solvent guarantor or co-applicant. A loan with two people is considered safe because the guarantor actually bears the credit risk alone.
Loan security through security would also be conceivable. With small incomes in the low-wage sector, high real assets are unfortunately rare. But, many pensioners have paid for their house for a lifetime. Now it can help secure the loan you want. Since there is no rent to pay, even the household bill works and manageable loans can be approved.
Small income – even interest-free installment loan
Mail order companies and department stores increase their sales figures through offers for hire purchase. Everyone knows the offer from the Christmas season – “Buy Christmas gifts today and pay the first installment at Easter”. In addition to the payment break, interest-free financing is often granted.
The admission requirements for the loan are low. In many cases, it is sufficient to prove a clean Schufa and a secure income. The level of income plays a subordinate role.
Small income – quick free credit
Low income credit is often sought because a higher bill cannot be paid from current income. Fast credit with a small credit volume is not a problem despite low income. Good Bank, for example, offers a microcredit for emergencies from a net income of 500 USD. The interest level is roughly the same as the overdraft facility.
Applicants would be able to apply for up to 500 USD of credit with a term of 30 days for first-time applicants. It can go even faster for existing customers of Cream Bank. The function is called money emergency call. A program checks the credit request in real time and immediately pays 100 USD to the customer’s account. Credit decision and availability of money cannot be offered faster than in real time.
Installment loan with low income – alternative loan providers
Not only regular bank loans come into question for small incomes. The loan has been established for years from private to private through the credit portals Best Lender and Good Finance. DIW Berlin even praised the Best Lender portal in 2011 as a serious credit option for people with low incomes. (German Institute for Economic Research). The credit process is very simple.
A loan application is created online and published on the portal. Private investors may bid in partial amounts on the desired low-income loan. Depending on the interests of investors, it may take some time before sufficient investors are ready to invest. As soon as sufficient bids have been received and accepted, the loan is considered approved. A bank takes over the further loan processing.
We recommend Best Lender for the low income loan. Not only private investors, but equally interested banks could take over the financing. This means that money can be accessed more quickly and at lower interest rates.