In any case, the low-income earners can expect to be rejected by a bank, since this group of people will not be classified as creditworthy. Of course, such a situation is devastating for someone who may even have a good idea and a good and solid concept in their hands, but you shouldn’t give up too quickly because you can still get a loan.
The systematic approach is important here
The banks will in any case carry out a credit check, obtain Credit bureau information and they will use evidence of income . Every bank or institute will work according to its guidelines and guidelines so that they will not be known to the borrower at the beginning. The branch banks tend to be reluctant to grant loans.
The low-wage earners will not be able to expect some banks to get a loan of 10,000 USD. It is advisable to express your own credit request to a few banks, this could increase the chances of finding a bank in the end, but also one that is ultimately adapted to your own ideas and needs. You will then see whether you will receive a positive answer from any bank or not.
The banks charge higher interest rates for low earners. For the existing higher risk, banks rely on higher interest rates so that they themselves do not take a higher risk than is necessary. The respective conditions should be compared well by a low earner, as there are some and different providers on the market. Every possible saving should, if possible, be used by the low earner .
A credit calculator on the Internet could help here, where you can then directly compare the providers. It would be advisable to contact the banks that offer the lowest interest rates in relation to taking out a loan.
The loan amount and its installments should not be too high
In an extremely negative situation, it is advisable for low-income earners to take out a loan because they are not doing as well financially. Very important purchases such as a washing machine should be financed with a loan or a new car if the old car has given up. Low earners have a rather low income.
By taking out a loan, this income will decrease further and every borrower should take this into account. The monthly installments for the loan taken out have to be paid by the end of the specified term.
What is possible without a job?
Not everyone has a permanent job today. Many receive social benefits or unemployment benefits, study, are pensioners, housewives or housewives. It is much harder for you to get a loan than others. Many banks first require proof of a solid and, above all, good income before lending money to someone. This is understandable because they want to be sure that the loan will be repaid on time and on time.
The group of pensioners and students still has it a little easier to get a loan, but not all but some local banks give this group of people credit under special conditions. It looks much worse for the others. Unemployed people, ALG2 recipients and people without regular income are not considered creditworthy by any savings bank or almost any house bank. You then only have the opportunity to contact (often foreign) banks or credit intermediaries who specialize in precisely this clientele.
In order to get a chance on a loan from them, however, certain conditions must also be met as a rule. For example, security that can be offered to the lender is very helpful.
For example, if the potential borrower has his own house, a valuable coin collection, a newer car, or a higher life insurance policy, then lending is much more likely. A surety is also very useful. If a spouse, another family member or friend vouches for the potential borrower with their fixed income, this also increases the chances of a loan considerably.
But you still have to know that loans without a permanent job are almost always given at higher interest rates than others.
What to pay attention to
The lenders naturally have the higher risk paid accordingly. In order not to be ripped off here, a free comparison, for example on the Internet, is definitely worthwhile. In addition, people without a permanent job can also get a loan from private to private.
There are people who do not want to invest their money in banks at the current low credit interest rates and are willing to lend it.
Of course, the terms of repayment and the amount of interest are of course negotiated privately between the two parties and unemployment does not have to be an obstacle. Nonetheless, people who are unemployed and with low government support should carefully consider whether a loan is really necessary and whether there are real chances to repay it.
When the income is just enough to live on, every loan is a considerable additional burden.