Loan despite low income – even cheaper & faster

If the income is narrow, financial problems quickly arise, because many wishes can not be fulfilled. If these accumulate, however, a loan can be taken despite a low income .

He can help to fulfill the wishes and provide financial relaxation. Quite simply, the endeavor is not yet.

When do you talk about low income?

When do you talk about low income?

Loan despite low income – now compare directly

Even if we live in a country where employment is almost full, there are many people who can barely live on their incomes. Despite the minimum wage, this is so low that only the basic needs can be covered.

On the other hand, additional requests must be postponed until the financial situation has improved at best. But an improvement is not in sight in many cases. Therefore, a loan despite a low income has to be able to cope with at least the most urgent wishes and purchases. As an obstacle, however, the income can be considered. If this is below the attachment exemption amount, it is spoken of a low income. And this is not enough to secure a loan.

Loan despite low income – additional security

Credit despite low income - additional security

A low-income loan will only work if properly secured from all sides. The income is low and therefore can not act as collateral. For this reason, it is important that other collateral compensate for the shortage. Otherwise, there will be no fair credit.

Even if this is suggested once in advertisements. The best hedge is always a second person who is called in to borrow.

It should also bring with it an income which, at best, is well above what the principal borrower can afford. If the income of the main borrower is fixed, the conclusion of a residual debt insurance can also be considered.

But beware

This causes costs that add to the loan amount and increase the monthly rate. The residual debt insurance should therefore only be concluded if none of the additional additional safeguards can be raised:

  • Capital-forming insurance such as Bauspar contract
  • Material collateral such as car, home or other valuables
  • securities

Our tip:

The easiest way is to make the loan application and then look at what collateral the lender requires. Only then should they be submitted.

Not that more collateral can be applied than actually needed.

Align the credit to income

Align the credit to income

There is no point in dreaming of a loan despite low incomes, which entails a very high loan amount. Even with a guarantor on the side, there will not be a reputable funder who would agree to such a loan.

The risk of failure would be far too high. On top of that, it is unrealistic that with a small income large monthly loan installments can be paid off. After all, the money in advance was not enough to save something. It is therefore better if the loan is based on the income of the borrower.

Anyone who concentrates on a small loan amount from the outset and looks for suitable offers, will hold the loan in the hands of little income rather than those who play too high. Small loan amounts can be provided with small monthly installments.

A combination that works very well and puts the credit on solid footing. It does not matter if there is an intensive support for the borrowing or not.