In order to get a loan, prospective buyers must fulfill two conditions in principle: their credit bureau information must not contain a negative feature and this must be sufficiently high for the income deemed relevant by the respective bank. However, there are ways to get even with negative credit bureau or with low or irregular income a loan.
Despite negative credit bureau get a loan
Borrowing from negative credit bureau is primarily possible with banks from Switzerland or Liechtenstein. These handle lending with German customers in euros, so that they are not foreign currency loans. However, the Swiss banks only lend at fixed amounts of 3500, 5000 and 7500 Euro.
Furthermore, they require a significantly higher minimum income of the borrower than almost all domestic banks and not only do not expect any additional income, but also do not expect tax-free paid salary components.
More flexible with regard to the possible loan amounts are Luxembourg banks, for which a bank loan can also be applied for through a credit intermediary without credit bureau. Moreover, contrary to the assumption of most consumers, it is not completely impossible to get a domestic credit despite negative credit bureau. Individual credit institutions are willing, at least in the case of a negative entry marked as settled, to grant a loan despite credit bureau.
Borrowing with low labor income
Low-income applicants can get credit from many banks if they opt for a long repayment term. Before applying, they determine which financial institutions do not insist on an income that gives them the option of garnishment if they are not reimbursed. In part, the banks are content with a monthly income that is sufficient to pay for the loan installments on time, even if it is below the wage limit.
The longer the repayment term, the lower the monthly installment to be paid. However, most financial institutions limit the maximum duration of consumer credit lending to six to seven years. The few banks that grant loans over maturities of eight to ten years increase their lending rates over loans with a maximum maturity of seven years due to the increased default risk associated with the repayment period.
Even the calculation of the relevant income for the credit decision is inconsistent. While domestic banks often include child allowances in their accounts, few financial institutions include ancillary income from self-employment.
Loan seekers who receive such a loan apply specifically to a credit bank, in the budget account of freelance and self-employed additional income. If the income is not sufficient for credit installment, even if fully credited, applicants can get a loan by applying for the loan together with a second person.
Groups of people who do not get a loan from all banks
The easiest way to get a bank loan is for workers with an unlimited employment contract. Freelancers and the self-employed, on the other hand, generally do not receive credit from most direct banks and some retail banks. Therefore, they only submit their loan application to an institute which, in principle, also awards consumer loans to the self-employed or freelancers.
Individual banks expressly exclude other groups from lending. For example, in a few financial institutions employees of temporary work agencies can not receive a loan, even though they have a full-fledged employment contract.
In the case of a fixed-term contract, very few financial institutions approve a loan if its term exceeds the end of the current contract period. In addition, the discretionary credit granted on the checking account should not be overdrawn, so that the applicant receives the desired credit. Otherwise, the requested credit bank suspects an improper handling of financial obligations and rejects the submitted loan application.
This consequence of a covered current account can be avoided by the loan seeker applying for a bank loan at one of the few financial institutions, which continue to dispense with the submission of current bank statements.
Get 5 tips on credit
1. Check creditworthiness
In order to get a loan at all, your own creditworthiness needs to be clarified. Not only the credit bureau counts for this, because the own payment power consists of many more factors. The first priority should therefore be to draw up a revenue and expenditure plan. Only if this shows that the rates for a loan can actually be paid, should this be included.
In addition, at the beginning of the question in the room, whether the salary is sufficient to then even make their own living. This is also important for the bank because the monthly fixed costs are used to calculate the amount of the possible installment.
2. Compare loan offers exactly
All loan offers should be compared exactly to get the best possible terms. This is not just about the amount of the installments, but also about the term and interest. It is important that these remain relatively constant over the term, but can also adapt to changes in the market.
So you should look for a loan with variable interest rate adjustment. The lower the costs in this point, the more likely it is that a loan will be awarded.
3. Remove obstacles
To get a loan at all, the obstacles should be eliminated in advance as far as possible. This means the cancellation of superfluous accounts and cards, as these can have a negative impact on the credit rating. Also, the credit line should be set as high as possible without it being claimed. If you have credit cards, you should be able to prove that you always pay the costs on a monthly basis and do not use any payment installments.
In addition, old contracts should either be replaced or, for example, current car loans should always be paid on time. All this increases the chances of obtaining a loan, because it significantly improves the credit rating.
4. Provide collateral
If you want to take out a regular loan, you should be able to show the corresponding collateral right away. So this can be the car letter of a vehicle or the land register deed for a property. Jewelry and other possessions can also be used for this purpose.
In advance, you should also seek a guarantor if appropriate collateral is not available. Ultimately, correspondingly high wage payments can serve as collateral. If there is still an additional income, this can also be used as security for the lending.
The collateral should be documented in writing and its existence confirmed by an independent body. If the credit is taken at the house bank, it may be advisable to open here a locker for any valuables, which documents their existence.
5. Prepare the payment plan
Also, the preparation of a payment plan can significantly accelerate lending. Banks like to see it, if the customer has a clear idea of how he wants to repay the borrowed amount. In this way, a relationship of trust can be created that makes it much easier to obtain a loan with correspondingly favorable conditions. This should extend over the entire duration and show month after month, from which revenue the rates should be denied.
Under certain circumstances, an independent advice center can help here, helping the interested parties to prepare the relevant documents. In addition, the corresponding proof of salary receipt should not be missing.