Month: December 2019

Young people are standing on their own feet and then have to realize how expensive life really is. Your own apartment, driver’s license and new furniture cannot always be paid for from your training salary. This is usually very low, so that many wishes and dreams are on hold. But not all wishes have to wait, there is the possibility to apply for a loan for young people.

Characteristics of a loan for young people

Banks have now adjusted to the group of young people and know that it is difficult to stand on your own two feet with little money. More and more banks are offering loans to young people who often have low interest rates. However, there are a number of things to consider so that the loan can also be applied for. If the applicant is not of legal age, the signature of the legal guardian must be presented.

The latter must also sign the loan agreement. If the applicant is of legal age, he must offer the bank collateral. The collateral includes a regular income and a place of residence in Germany. The bank usually requires a budget. This can also be created with a bank employee so that nothing is forgotten. This budget contains all income and expenditure, which are then offset against each other. If there is a plus at the end, a loan can be applied for. However, if there is a minus, it will be hopeless to get a loan. If you have no money left, you will not be able to pay the installments.

When should a loan be taken out?

A new car and new furniture are status symbols for young people and hardly anyone wants to do without it. Nevertheless, it should be carefully considered whether the loan is really necessary. A loan for young people automatically means that debts are made that also have to be paid back. A loan should only be taken out if there is no other option or if the applicant is sure that he can really pay off the loan without any problems. For example, a vacation trip should not be repaid by a loan. A driver’s license that is financed can make sense to expand your professional options.

The state pays child benefit for children who are not yet of legal age. It is intended to provide financial support to parents in the provision and care of their offspring. It is a social benefit that cannot be included in the loan calculations if a loan is taken out. Because child benefit does not count as income and is therefore not recognized as such by banks. There is therefore no pure loan with child benefit. Despite all of this, child support can help you get a loan.

Real income counts

For banks, only real income is decisive when taking out a loan. Child benefit, parental benefit, sickness benefit or even unemployment benefit do not increase creditworthiness and are therefore not included in the calculation. Nevertheless, benefits like child benefit are not bad if you want to take out a child benefit loan. Because they are additional services that are available after borrowing and ensure a good standard of living despite the credit burden. In addition, social benefits may not be seized in the event of default, but only parts of real income.

How to find a good installment loan

There is no pure loan with child benefit. But there are good installment loan offers that can be taken up with a solid income and child support. In order to find these, a comparison is worthwhile, which can be carried out on the Internet with the help of a comparison computer. Only the key data for the loan, which is the basis for the calculation, must be entered in the comparison calculator. The most lucrative offers are then shown without having to ask each bank individually.

A comparison over the Internet thus saves a lot of time. But that’s not enough. If desired, the loan can also be applied for online. And not only with direct banks, which are known to be reached only in this way. The traditional banks with branch operations also offer their loans to us via the Internet, thus allowing borrowing via the Internet. It couldn’t be more convenient, since you are not tied to opening times and appointments to give advice.