Finding ways when the income is not enough for the credit considered. The amount of the family income, as well as a – after deduction of the costs – as safe as possible remaining, high household budget increases the chances of getting a loan approved by a bank, savings bank or intermediary.
After all, nothing serves as collateral to the lender on an unsecured loan like monthly income.
Calculate free household budget
Depending on the personal budget situation, banks require a different – preferably free – budget when financing a loan. That an income of 3.000, – Euro is not enough, is not uncommon. For a 4-person household, for example, even a good net income may be insufficient, as there would be too little "free budget" available after deducting the monthly installments.
The family income counts
What is meant by family income? Income includes not only the main income, but also all other income that exists in the family. Of course, this also includes additional income on the basis of "marginal employment", the so-called 450,- Euro mini-job. In addition, all income from commercial activity, a side business or income from early retirement, part-time pension, full pension or pension. Rental income is also part of the addable income.
If the monthly income is too low
You have added all available income and still remain below the value which your bank has set as a minimum for a financing approval.
Taking on a sideline job could be the solution to finally getting a suitable loan after all. Perhaps you could also borrow part of the loan amount from a relative, but even privately borrowed money must be repaid.
Low-income earners beware: Our partner's affiliated banks require a minimum monthly net income of only 1.300,- €. Thus we could help also already many low earners.
What other possible solutions are there??
The question arises, which solutions can now lead to the goal of obtaining the loan after all.
In most cases, naming a solvent guarantor as a co-applicant leads to the realization of the hoped-for desired amount. But you should be aware of what guarantors should consider when taking out a loan.
A guarantee can cause many problems
Bringing a guarantor on board for financing as a so-called co-applicant always means that this guarantor is also jointly responsible as a "second borrower" for the punctual repayment of the monthly loan repayment. And exactly as if he himself had taken this credit. So if, for whatever reason, the main borrower defaults on the repayment, it's the guarantor's turn.
Bank plays it safe with guarantors
So instead of one, the bank now has two contacts who are responsible for paying off the rest of the loan, each economically on their own. Which means for bank or savings bank so much that their risk extremely sinks, since the lent money is secured now by means of double income. So good for the bank!
Tip on guarantees : co-applicants do not necessarily have to be relatives. Besides friends or acquaintances, anyone can become a guarantor. However, this requires a fair amount of trust, because if the borrower is insolvent, the co-applicant is in demand.
To summarize: Collective borrowing requires a correspondingly high level of trust. The co-applicant should be clear from the outset that after a total default of the borrower to take over the monthly repayments must. And in fact in full until the full redemption.
For installment loans and financing of all kinds, we recommend our partner Bon-Kredit, with whom we have had exclusively positive experiences. Already from a net income of 1.300, – € can be requested a credit. Now simply use the following reference to get extra fast processing of your request.
Even with bad Schufa Already from 500, – € the small loan can now be requested. Even with a bad credit rating you can apply here, because applications are therefore not generally rejected!