Single people without children have no difficulty borrowing money if they have the appropriate income. If the income is sufficient and the private credit checker is in order, very few banks refuse a loan for single people.
The single loan – the prospects
Basically, a single person can get a single loan. If you have the necessary creditworthiness, ie a sufficiently high income and a clean private credit checker, you will not have any problems with a loan request. Single people only have problems if the income situation is such that a loan is not secured. Women in particular are exposed to this problem because they still earn an average of 18% less than men.
The single person can go to their house bank for a single loan and request a loan there. As described above, the bank is checking the creditworthiness and will also draw up a budget. This shows the income and expenses of a loan seeker. If the budget is cheap, there is a remaining amount, so there is still room to pay a loan installment.
Experience has shown, however, that the conditions of a house bank are worse than those of direct banks on the Internet. No complex branch network is operated by these banks, so that personnel and rental costs are lower. This saving is passed on to customers. The customer therefore benefits from significantly cheaper loans.
The situation of a single person is somewhat worse compared to married couples. In the case of a single person, only their salary counts, with spouses the double-sided salary can be contributed, which further reduces the credit. Single people must therefore have sufficient income and be in an economic position to be able to pay a loan for single people.
The definition of single borrowing
These considerations often include single mothers, where the children are included in the household bill. Maintenance payments and child benefit are not taken into account. The reason for this is that these payments cannot be attached. Then it can be traced if a loan for single persons is not approved.
If women are led alone before the law, but they live in a partnership, the partner as a co-applicant could sign the loan agreement. Banks generally assume that they live alone in their home. This is where the definition comes in, what means single and what is alone.
Banks are entitled to single people, since they only have to pay for themselves that they can make higher loan payments if they have the appropriate salary. But the extent to which this really applies to single people has to be clarified on a case-by-case basis.
If single people get to know a partner and move in together, a new loan for all kinds of purchases usually has to be taken out. Until then, borrowing was not tied up, which actually only makes sense if borrowings are then repaid. It should be noted, however, that the bank can calculate any prepayment penalty.
Banks earn from the interest on loans, which are set for a corresponding term. If the loan is redeemed prematurely, the bank loses interest, which it compensates with the prepayment penalty.
If the income situation for the loan for single people is not sufficient, a guarantor could secure the loan. That could be someone from the family who has to be solvent, however. The bank will examine the prospective guarantor closely. His income will be put to the test, his private credit checker will be checked. Permanent employment is also part of this. If these conditions are satisfied to the satisfaction of the bank, the guarantor can assume the guarantee.
The bank will propose a joint and several guarantee, which equates the guarantor to the debtor. This means that if the debtor can no longer pay, the guarantor is immediately held responsible, and the bank does not have to issue a warning. The default guarantee would be the better version of the guarantee. The guarantor is only used here if the debtor has gone through all legal instances up to enforcement.
In general, single people and the guarantor should know that a guarantee is a risky business. It was not uncommon for guarantors to be financially ruined by their surety. For this reason, a guarantee should only be given if the loan can be repaid without any problems if the worst comes to the worst.
The bad private credit checker loan
If the income situation is just sufficient, many banks offer residual debt insurance. The insurance may not be made dependent on the loan approval. But many banks place it in the hands of the loan seeker to decide. Unexpected unemployment or a serious illness with incapacity to work are cited.
These insurances are very expensive and the extent to which a residual debt insurance should be taken out for a possible small loan remains unanswered.
Therefore, a single loan is the better version if a guarantee secures the loan.
But what should single people do who have a bad private credit checker. In order for the single person to receive a private credit checker-free loan, his income must be above the garnishment-free limit. For a single person it is 1,100 USD. If the income is so high, you can apply for a private credit checker-free loan.
In most cases, a credit intermediary will process this single parent loan. If you are looking for a private credit checker-free loan on the Internet, you will inevitably come across the pages of credit agencies. These sites are built like those of a bank, so that some customers do not even notice that they have commissioned a credit broker.
When commissioning these brokers, care should be taken to ensure that the credit broker is serious. So preliminary costs or prepayment are not serious work, this credit broker should not be trusted.