Finding a loan despite marginal employment is not impossible. Despite the low income, a whole range of different credit opportunities open up. Whoever grants a loan for low-income earners, what restrictions are to be expected, is what the contribution deals with.
Loan despite marginal employment – avoiding credit hurdles
The main credit hurdle to avoid, for a loan despite marginal employment, is the income level. No problem with the garnishment-free limit, who carry out a main job and a part-time job based on the American model. The income from the main profession that is subject to social security contributions and the legal 450 USD job count together for a loan. How high the individual limit on attachability is, can be easily read from a current attachment table.
This table is published, for example, on the pages of debt advice centers and on Wikipedia. Anyone who can exceed the personal limit of attachability, and who also presents a flawless household bill and a clean scheme, is creditworthy practically everywhere. A small loan can be found particularly cheaply with the help of a comparison calculator. If you want to finance 2,500 USD with a term of 24 months, for example, you will find it at Santander Bank. This loan request can already be fulfilled with an effective annual interest rate of 2.89 percent.
If the garnishment limit cannot be exceeded with the income earned, there is still hope for a normal loan. A second way of benefiting from the low interest rates, even with a loan in spite of marginal employment, is the loan guarantee. If a solvent guarantor enters into credit liability, the garnishment limit loses its terror. In this case, the guarantee of credit is only guaranteed by the guarantor. If there are payment difficulties, the guarantor must pay the loan.
Personal loan – loan solutions for difficult cases
Without a guarantor with an income below the attachment limit, it will be difficult to find a bank’s installment loan. The only exceptions in this case are loans from department stores and mail order companies and loans from private donors. In the case of department store loans, sales promotion is primarily the basis of simple lending. In this case, a loan amount that is not too high can still be considered as a loan despite marginal employment. But there are credit opportunities in the context of a Playstation or a flat-screen TV.
Large electronics stores in particular have been criticized even more frequently in the past for their “lax” credit check. It is not seldom that only the clean Credit Bureau and a working income are checked. The amount of income only has to be related to the value of the goods.
The second alternative, private credit, cannot be measured by standard lending standards. At Spin Lender or Across Lender, lenders are not professional money lenders, but ordinary citizens who decide what they feel. Those interested in credit have good credit prospects and present their loan request in a properly formulated manner. In addition, it is important, especially with a small income, to clearly demonstrate the ability to repay.
In addition to this good introduction to the bidding process, the certificates are also important. A good Credit Bureau, for example, ensures further trust in the borrower. Pledging a real asset can also improve credit opportunities. It is possible to bring in the paid vehicle as collateral at the loan value.
Overcome short-term financial bottlenecks
It is not always an installment loan despite marginal employment that can prevent financial difficulties. For a short-term financing requirement, the checking account offers the possibility of overdraft. In order to receive this credit opportunity from the “house bank”, it is important to have the additional earnings paid cashlessly to the account. Checking accounts, to which regular incoming payments are posted, allow the clerk to grant a small overdraft facility. Those who fall on deaf ears at their credit institution should give Infrabank a try. An online giro account at Infrabank is not only free of charge. It is already opened with an interest-free overdraft facility of 50 USD.
Another option for a loan despite marginal employment is microcredit. Again, just a regular income and good Credit Bureau have to be proven in order to receive a microcredit. Such a loan comprises a maximum loan amount of USD 500. It must have been cleared again within two months, under certain conditions three months.
There is still one last option that guarantees a loan despite marginal employment. It is the loan from the pawnshop. At the pawnbroker neither creditworthiness nor income count towards lending. The loan is secured solely by the mortgage lending value.