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.