Are you looking for a low income loan but the credit world seems to ignore your financing needs? In this case, you are probably only addressing the wrong provider.
In the credit advisor we present which loan offers your request belongs to, what commercial lenders pay attention to. You will see that even with a small income, an adequate loan does not have to be an obstacle. If desired, the money can even be available in real time.
Low Income Credit – Regular Banks View
The success of a loan application often decides to understand the perspective of the lender. A typical case for the rejected low-income loan would be a pensioner’s attempt to loan from his house bank. Unfortunately, a pensioner with an average pension amount can save the application for an installment loan practically without exception. In this situation, loyal customers no longer understand their bank.
Years of loyalty to the bank and the good credit history of the past do not help retirees if no attachable income is achieved. A single pensioner without maintenance obligations would have to earn at least a net pension of 1079.99 USD to prove attachable income. The statistics show the level of an average pension to be significantly lower.
Without a attachable income component, the pension is not sufficient for lending. The clerk often rejects a “real” credit check when he sees the pension notification. He does not refuse the low-income loan out of bad will, but because he is not allowed to approve it. Most branch banks protect themselves against costs in the event of repayment problems and against loan defaults through clear rules.
Interested parties receive installment credit only if they can be attached in an emergency. The clerk can help – with no additional collateral – at most with a small overdraft facility.
Credit security – key to lending
Credit security is the top priority in times of the USD crisis and mini-interest rates. A regular low-income installment loan can be promised to people who have extensive attachable assets, such as a paid house. The alternative would be that a solvent co-holder (guarantor or co-applicant) assumes liability for the loan.
But there is an exception to every rule. A few online providers allow the installment loan with clean private credit checker even if it is not attachable. However, there is no quick automatic approval process for this. The individual case is checked. A relevant loan is possible from a net income of around USD 850 if the budget statement shows a clear surplus.
Such a low-income loan would be checked by hand. Only in this way can conclusive arguments prove that the loan will be paid safely. An example of this would be a loan for a young low earner who lives with parents. He doesn’t have to pay rent or make a living himself. In such justified exceptional cases, the feat can succeed in obtaining a significant installment loan.
Creditworthy despite low income – short-term financing
The best known short-term financing is the overdraft facility. It is even granted to trainees as soon as they are 18 years old. In contrast to the interest rate on the installment loan, the bank collects up to eight times the interest rate for the overdraft facility granted. In addition, the loan can be due at any time. In contrast to the installment loan, the credit institution can do without complicated dunning procedures. Due date opens up the option to enforce as quickly as possible.
Another short-term financing would be possible via the credit card. A “real credit card” can be applied for from a net income of around 650 USD. The card includes a leeway of around 1,000 to 1,500 USD. If the game room is exhausted, payment in installments can be requested. Again, the high interest rates on this option for the low-income loan are a disadvantage.
Microcredit is relatively new to small income borrowers. Microcredit enables financing with a term of 30-90 days. A mini loan of 100 – 1,000 USD is available for this short term. Lending can take place in real time, for example in the “bank credit emergency call”. With existing customers can arrange the loan payment within 30 minutes.
Low income loan – installment loan from private
All of the aforementioned regulations relate exclusively to the lending of commercial credit providers. With the loan from private to private, each lender decides who he wants to grant a loan according to his personal ideas. Private investors decide freely and thus offer special opportunities for low-income loans.
With regard to the loan for pensioners, a long-term study shows that the loan through Best credit company often closes the credit gap. Compared to other low-income credit requests, pensioners also have a particularly low risk of default among senior citizens. Best credit company offers serious contact with both private investors and banks when it comes to small-income loans.
It is not a clerk who decides on the lending, but the bids of the community. No investor has to take the risk alone. Bids are made in small installments, which every investor provides with money at his discretion. Thanks to the capital division achieved in this way, a loan with a low income of a significant magnitude is not an unmanageable risk. Inside the portal, the investor is even insured in the amount of his investment capital.