Low Income Credit | Request money now!

January 7, 2020 By Roy Tester

The banks will obtain information from those in need of credit with every loan request. A very important characteristic, in addition to the Credit Bureau query, is the amount of income. Finally, the loan amount must be repaid on a low-income loan.

The importance of the household flat rate

For this purpose, the banks will set a flat rate for the household. This is a fixed amount that is applied to the number of families or household members. The more people belong to a household, the higher the amount will be. The amount is intended to cover the entire cost of living and thus includes an amount for rent, insurance, purchases, and groceries. Rarely can a bank apply for a loan application if there are lower expenses?

This household fee is deducted from the income of the person who applies for the loan. The difference is decisive and whether the monthly installments can be repaid without any problems with this amount.

If it turns out that the income is not high enough, it does not have to be the end of a positive credit decision. There are many ways in which the loan can still be paid out.

Loan to a second borrower

Hiring a second borrower can be particularly successful for married people. If both partners receive a salary, the disposable income of the household automatically increases, while on the other hand, the expenses remain identical. In this way, the amount that the banks require for the loan to be paid out can very often be reached. Banks also have greater security because they can hold both borrowers accountable in the event of loan default.

Loan with guarantee

If your own income is too low, a guarantee can also help you get a loan. The loan agreement is supplemented by a guarantor who provides the bank with additional security with his own income. If the loan repayment runs smoothly, the guarantor will no longer be held responsible. However, if the payments fail to appear, the guarantor is asked to take them over.

Other options for low-income credit

The loan can also be paid out if

  • a pledge takes the form of a life insurance policy,
  • the property is given as a pledge,

It must always be borne in mind that it is up to the banks to decide which income they want and whether they consider the provision of collateral sufficient.