Lending to German banks can only become a reality if the external framework is right. This includes a sufficiently high and regularly incoming income, a clean school and an open-ended employment contract. Before each loan, banks carry out a Credit Bureau query. See http://www.bloggerpl.com/instant-bad-credit-auto-loans-how-to-qualify-for-auto-loan-with-bad-credit/ for details
This query is used to test the customer’s creditworthiness, since it shows whether there have been any payment problems in the past. If all of these requirements are met, a loan can be approved within a few minutes. However, only the loan seeker benefits from this if he has a seizeable income. It has to be so high that the installments can be paid easily. For this reason, it is difficult to obtain a loan despite a small income.
The loan despite small income
In many cases, some people’s income is not even enough to cover the cost of living, let alone pay in installments. For this reason, banks do not agree to approve a loan unless other collateral can be provided. This can be a guarantee or a co-applicant or high-quality property collateral such as a property, a private pension or a capital-building life insurance.
If you do not earn much and are considering a loan despite a small income, you should compare your income and expenditure yourself. If there is a plus, this could be used for a rate. Even if a lender finds himself without other collateral, the rate should be kept low. This is achieved by extending the terms.
But that’s a thing too. If you want to treat yourself to something like a little vacation trip and take out a loan in spite of a small income, you will still pay off this loan when you are back home. In the meantime, however, necessary purchases may have to be made or an unexpected invoice may flutter into the house. The credit is then exhausted with the small income. What to do? If you have only a small income, you should only take out a loan if you can pay the installments and if the loan is really necessary.
The 400 USD job
Anyone who counts among the 400 USD jobbers is probably one of the people who receive social benefits. With 400 USD as income you can by no means make a living, which will then be increased by the office. But even in this case, there is no loan despite a small income, unless there is collateral, a guarantor or a co-applicant.
If you have a co-applicant who has a regular and sufficiently high income, you may be able to get a loan despite a small income. In this case, it should be considered whether the co-applicant takes the loan himself and pays it to the loan seeker. The loan seeker then pays the loan installments to the co-applicant. This can become a reality if it is the spouse or some other familiar person.
A loan despite a small income can be realized in retail. If you want to buy a television or a computer in a specialty shop, you could possibly get a loan. The goods remain with the dealer as security until final payment. However, there is no cash.
Another variant of lending is that if someone has a main job in which he works part-time because full-time employment is not possible and he also does a job that earns him 400 USD, this could generate sufficient income. A loan without Credit Bureau would also be possible because there is then a seizable income.
As a guideline in lending, a minimum income of 750 USD can be assumed. Of course, with this income, only so-called microcredits can be obtained that also have a long term. The installments are then significantly reduced so that the loan can be repaid. However, the Credit Bureau must be clean with this credit procedure.
When determining the creditworthiness, the bank also defines the applicant’s credit line. The higher the income, the better the overall financial situation. This credit line shows the maximum amount of a loan, which is why the amount is tight when the income is low. A loan despite a small income can be selected using a loan calculator. In a loan comparison, the lender’s acceptance rate is visible in addition to the conditions and total costs. If this turns out to be relatively high, even borrowers with a small income still have a good chance of getting a loan. But if there is a lender, it should also be considered in your own interest whether a loan is really necessary. Those who have a small income tend to go into debt.