At the moment, lending rates are at historically low levels. Many bank customers would like to benefit from the low interest rate phase and finance a larger issue with a cheap loan. In addition, the low interest rates provide an excellent opportunity to balance the disposition credit and thus much faster to pay off old debts. Although advertising seems to make it easy to get credit, borrowers often face unexpected hurdles.
Get a cheap loan despite low income. What should be considered and how do you find suitable providers?
What does lending depend on?
Banks make their decision to grant a credit application dependent on how much they assess the individual credit default risk. For this purpose, the banks obtain information from the SCHUFA, which enables an assessment of the creditworthiness. Another indicator of creditworthiness is the amount of monthly income. Banks put this income in relation to the monthly credit to be handled and decide on this basis for or against the loan application.
How do low wage earners increase their chances of getting a loan?
Even with relatively low monthly income bank customers want to use the low interest rates. As the loans are sometimes less than one percent and sometimes not even interest, this is a wise economic decision. If the used car or the much-needed household appliance is financed with a small loan, it can be used to counteract the risk of having to use the expensive MRP credit. In spite of generally low lending rates, the banks still sometimes demand double-digit interest payments for syndicated loans. Since a bankruptcy loan can be terminated unilaterally by the bank, unlike an installment loan, this is not a sound financing option.
Bad opportunities for low-income borrowers
On-the-spot commercial banks are showing borrowers relatively quickly, pointing to low monthly revenues. This does not only apply to credit requests, which would clearly go beyond the possibilities of bank customers. Even though the loan rate is reasonably related to income and the repayment is not expected to cause problems, borrowers must expect a mini-loan application to be rejected.
With the credit comparison to the cheap loan
The online loan comparisons offer low earners better ways to get a cheap installment loan. Here, banks offer loans, which generally have a higher willingness to grant cheap loans to low-income customers . In addition, bank customers have access to the offers of the particularly favorable direct banks, which charge on average 30 percent lower interest rates than the local commercial banks.
If you are looking for a cheap loan, you should not give up on a credit comparison
Benefits of the loan comparison
Also, the loans offered on the comparison portals are absolutely reputable, so that customers are protected from dubious offers that promise loans without SCHUFA . Often borrowers have to pay for such offers even before fees and accept completely excessive interest.
A good and useful loan comparison clearly presents the offers of more than 20 banks, so it is easy to get an overview and choose the cheapest offer. The banks also take into account the fact that low earnings are by no means always associated with low credit ratings. Low earners in particular often pay close attention to not defaulting on payments and use installment credits responsibly to distribute larger expenditures so that they can be handled easily.