Fixed income credit

 

People with no fixed income have two difficulties in life. For one thing, they have little money, perhaps just a few social benefits, with which all fixed costs have to be paid. On the other hand, they have hardly any chance at banks to take out a loan that could help defuse their financial situation.

Banks often refuse the loan

Banks often refuse the loan

When it comes to a loan with no fixed income, banks often reject an application. There are different reasons for this. The most serious is that applicants without a fixed income cannot offer collateral. Where there is no money, which is part of an income, no loan installment can be paid. With this group of people, banks see a high risk that the loan cannot be repaid and therefore do not conclude any contracts.

Increase opportunities with certainty

Increase opportunities with certainty

Applicants who want to take out a fixed income loan can only have a chance if they increase their collateral. Since there is no income, which is an important prerequisite for a loan, other collateral must be found. In this way, the loan seeker can try to get another person to take out a loan, which they can then repay.

Only a few get involved, because a loan automatically means that you are in debt. Another possibility would be that someone with their salary guarantees the loan with no fixed income. However, the guarantor must have a fixed income and show a Credit Bureau that has no negative entries.

Credit is not approved – what to do?

Credit is not approved - what to do?

If a loan without a fixed income is not approved, an attempt can be made to increase the overdraft facility. However, this is a very expensive matter because the overdraft interest on a overdraft facility is very high. The account holder runs the risk of being heavily in debt and hardly getting out of the debt trap. The only other options are to take out a personal loan.

Such loans are offered on the Internet, but often have very high interest rates. It would be better to ask friends or family members to lend a small amount of money. A credit contract should be drawn up here so that the person who lends his money can be sure that he will get his money back.

Credit without Credit Bureau and creditworthiness – What this type of loan

 

 

The focus of the lending is on a regular income and a flawless Credit Bureau. If these criteria are not given, the alternative is the loan without Credit Bureau and creditworthiness. What this type of loan is all about is explained below.

The financial bottleneck and the bad Credit Bureau

The financial bottleneck and the bad Credit Bureau

German banks have guidelines that state that lending is only granted with a positive Credit Bureau. The focus is also on a demonstrable high income. The Credit Bureau statement is a binding matter for regular banks as it shows the creditworthiness of the customer. Negative entries, be it just an unpaid mobile phone bill or department store bill, reduce creditworthiness and put a stop to a loan approval.

But in some life situations, despite the limited or nonexistent creditworthiness, a consumer needs funds. He does not need to include the house bank in his considerations, since it is bound by their guidelines. As an alternative, the loan without Credit Bureau and creditworthiness comes into question. Verifiable payslips cannot be provided, but other collateral must be provided to reduce the risk of insolvency.

The loan guarantee

The loan guarantee

For the loan approval for a loan without Credit Bureau and creditworthiness, other means of securing the loan than the income must be provided. If these are met, nothing stands in the way of a positive loan approval. The alternative means of securing credit are real estate such as a property, house or property, a loanable life insurance, securities or a solvent guarantor that can be included in the loan agreement as a co-applicant. Many loan seekers do not have collateral such as property or other valuables and are dependent on the naming of a guarantor.

A guarantor can be a creditworthy spouse, a relative or an acquaintance. It is important that this guarantor can prove his economic situation as positive. In the event of default by the borrower, he must be able to pay the loan or pay the installments. In addition, his financial situation must be so relaxed that he can easily co-finance the additional costs arising from the guarantee in addition to his own financial obligations.

This loan without Credit Bureau and creditworthiness can be applied for on the Internet via so-called credit agencies. These can arrange a loan without Credit Bureau and creditworthiness. However, a loan seeker should exercise caution when prepayment is required or when sums of money larger than credit are offered that do not require special security. Well-known providers on the Internet certainly grant serious loans without Credit Bureau and creditworthiness, but a loan comparison should be carried out before the promise to a provider. The various providers have large price ranges in terms of conditions, and since a Credit Bureau-free loan with no credit rating is generally more expensive than a regular loan, a cheaper and reputable provider should be selected.