The majority of consumers are occasionally confronted with the need to borrow. However, the application for a loan is often rejected. Therefore, it is important to know the criteria used by banks to approve or reject a loan application. This significantly reduces the risk of failure.
Credit with parental allowance, is this possible?
This question can be answered flat neither with yes nor with no. It depends on the individual circumstances. In principle, however, the parental allowance as well as child benefit, FAL I and II or housing allowance are considered social benefits.
Income from social benefits is not taken into account by banks when granting loans. So if the income consists only of child support and parental allowance, the loan application will certainly not be approved.
If the spouse works or has income from other sources, such as rental income or disability pension and the like, the loan application has a good chance of being approved.
What are the requirements of the banks?
In order to get a loan approved, the applicant must meet several conditions. He or she must be of age and legally mature. The applicant must be employed in an open-ended and unfinished employment relationship.
The employment relationship must have existed for at least one year with the same employer. The minimum wage should be around 900 euros per month. Income from social benefits is not counted.
The creditworthiness of the applicant may be checked by a request to the Credit bureau. But there are also financial institutions that grant loans without Credit bureau. As the risks for the bank are higher, the conditions are significantly worse. The creditworthiness (solvency) is always checked, even for loans without Credit bureauauskunft.
Credit despite parental allowance and benefits
Not only the unemployed or Hartz IV recipients find it difficult to get a loan, even low earners such as part-time workers, students or apprentices face this problem. Also affected are employees with fixed-term employment contracts, the self-employed and pensioners. To get an installment loan from the bank, this group of people has two options. The first is to provide collateral to the bank.
These are, for example, real estate, securities, investments, precious metals and others. The second option is to find a guarantor. A guarantor is a person who meets the minimum requirements of the bank.
If the borrower can not pay the installments, the guarantor agrees in writing to take over the continuation. If you have neither collateral nor a guarantor, for example, there is still the chance to apply for a personal loan on the internet. The criteria are less strict, but the loan is usually earmarked.