Unforeseen Fatal blows and expensive purchases can quickly lead to financial difficulties. If your own savings are not enough, taking a loan is a very tempting solution. Unfortunately, there are many prerequisites that have to be fulfilled.
Credit despite low income
Although people on low incomes need much more credit than high earners, they have worse opportunities at the banks. After all, banks want to minimize the risk of total default – and low income does not offer much security. But even if you earn little you can take out a loan if you meet certain conditions.
How do you get the capital needed?
Although banks prefer to lend their loans to high-income customers, you still have a chance of getting the loan you want. It is important that you perform well in the credit check that the bank carries out after the application has been submitted. Your Schufa and your economic performance play a particularly important role here. If you already have debt or your income is barely enough to survive, you will not get a loan. The bank wants the certainty that you can repay your loan on the agreed terms. If you have enough money every month despite low incomes, your chances of getting a loan increase.
The main advantages and disadvantages
If you need a lot of money and have no savings, the loan will take a big burden off your shoulders, despite a low income. However, it is important that you do not take any risks and have your finances under control. Unfortunately, the conditions for low-income loans are less favorable. In most cases, you will have to pay higher interest rates and stricter controls to get the loan you want. For this reason, you should make sure that the term is long enough and the monthly installments are as low as possible. Of course it is also advantageous if you own valuables (eg your own property) or have a guarantor. In this case, your chances of getting a loan look very good despite low income.