Those who have little income can save little or not at all. If a loan is then required, the bank can often not provide credit. The reason is the low income. When banks approve a loan, they secure themselves on all sides, they don’t want to take any risks. If money is lent, there must be certainty that it can also be paid back. If you are now looking for a lightning loan for low-income earners, you must first find a lender who can also grant a loan with little income.
Check the economic situation
If little is earned, little or no reserves can be created. The paradox is that those who earn well and who may have had enough reserves can easily get a loan. Low-earners rate banks as a risk group and generally refuse a loan or they want more collateral.
That could be a property, a loanable life insurance or other valuable collateral. A second borrower or a guarantor could also secure the lightning loan for low-income earners. Finding a special lender for a low-income lightning loan is not easy. But there are banks that cater to the needs of customers with little income.
The important point may be that the clean credit bureau is fulfilled, the vast majority of banks refuse a lightning credit for low-income earners. But there are lenders such as Gortas bank who have adapted to this clientele. A loan of 600 USD in income is approved by this bank. At first glance, this may be very gratifying, but if you look behind it, there are a few things to consider.
Ancillary costs and also the living costs
A low earner with 600 USD of income, from whom the rent, the ancillary costs and also the living costs have to be paid, is a very narrow scope. If you are realistic, there is no money left for a loan installment. However, if the loan seeker believes that he can pay the loan, an income/expenditure balance should still be drawn up before borrowing.
Of course, a large loan amount cannot be obtained with an income of 600 USD. Large rates are usually also left out. Even if a remaining amount remains, it should not be used entirely for a loan installment. Those who tighten their financial situation too tight will inevitably need a loan again soon. Low-income earners should also know that these loans are not exactly cheap. A high interest rate can therefore be expected.
If you overlook this, you are at the right bank. He will then also receive a lightning credit for low-income earners, but that should only be a few hundred USD or at most up to 2,000 USD.
An expensive loan
Customers looking for a lightning credit for low-income earners have to expect an increased interest rate and overall higher credit costs. If you don’t have a lot of income, you can assume that the annual percentage rate is well above average. Banks often want to insure these loans with residual debt insurance. But this is expensive. The full contributions are added to the loan amount, which makes the loan more expensive overall. Therefore, you should consider carefully if a lightning loan has been taken up for low-income earners. The need should also be checked.
The credit broker
If you are not really familiar with the Internet, you can also place the loan search in the hands of a credit broker. This clientele knows many banks that are based in Germany and abroad. Even lenders who are more willing to take risks can be found in the brokers’ portfolio. But there is to be noted that the mediator also works seriously.
Especially clients with little income or generally poor creditworthiness are the goal of dubious agencies. They require advance payment or preliminary costs and often require the signing of insurance contracts that the customer does not need at all. The customer will not see the money he has already paid and will not see a quick loan for low earners. Here you should pay attention to good references of a credit agency.
In addition, these loans are also more expensive and it should also be considered whether it makes sense to borrow. Credit brokers do not work for nothing, so a commission is due if the loan is successfully brokered.
Anyone who decides to take out a loan must know that they are making an obligation, the non-fulfillment of which can have unpleasant consequences. The borrower should know that installment payments are due on time each month. If this does not happen, it can lead to a negative credit bureau entry, which in turn makes borrowing more difficult.
Every bank carries out a comprehensive credit check before lending. If the customer cannot secure the loan with his income, he can name a solvent guarantor. In the event of a loan default, the latter must then continue to pay the loan. The guarantor must also have a sufficiently high income and a clean credit bureau.
With this loan option, however, one can no longer speak of a lightning loan for low-income earners. The borrower must decide for himself whether the effort of a guarantee is worthwhile. If it is a smaller loan amount, you should perhaps try to cover the credit requirement with the overdraft facility.
A request from relatives or friends would also be an opportunity to get financial resources. If there is someone who can provide money, a regular loan contract should be drawn up. In this way, later disputes are smothered in advance.