If one decides during unemployment for a new loan, caution is required. Many offerings target unemployed borrowers who find it hard to get loans. In advertising, the credit for the unemployed is advertised and given the impression that it would be easy to borrow money without income. Often then come with the loan application obligatory fees, or in addition to the loan other financial products are sold (for example, a home savings contract). Unfortunately, in these cases, the loans are usually never paid out, but the consumer remains sitting on the already paid processing fees or the additional purchased products. Dubious credit intermediaries have made the often hopeless unemployed here a business model.
If there is no income, other collateral can lead to the granting of a loan. The Federal Employment Agency may also grant a loan under certain circumstances.
What collateral can an unemployed person offer the bank?
Anyone who can not demonstrate proven attachable income usually has no chance of a installment loan from a German bank. Too big for the bank there is the risk of default. But if the unemployed loan applicant has the opportunity to put the loan application together with a second person, the chances increase. Of course, this guarantor, or co-applicant of course, should have a seizable income. For the bank, the second person’s income is thus the lack of financial security that the actual claimant can not offer due to his or her unemployment.
All facts at a glance
|EU foreign countries||family solution||German bank||Special credit intermediaries for the unemployed|
|advantages||+ Often no credit bureau exam
+ Unemployment benefit is also charged as income
|+ The way to the cheapest loan||+ Large selection and good availability||+ No real ones|
|disadvantage||– Banks require other credit checks
– Organizational effort relatively high
|– dependence on friends or family||– Other collateral absolutely necessary
– Unemployment benefits do not flow into income
|– There are virtually no reputable providers|
|Conclusion||Can then be a solution if the credit bureau makes problems, but credit rating is actually present.||If the Family Solution option exists, it should definitely be noticed.||Is usually only in a few cases a viable solution.||Stay away from the mostly windy offers|
Various insurance policies, such as a life insurance may also serve as collateral. If you have such insurance, you can lend it. In this case, either the insurance company could serve as a direct lender, or a bank branch could serve as lender. The collateral which is finally sufficient for which loan is then decided on a case-by-case basis by the bank. There is no fixed comparison value for this purpose. You can have your loan application checked free of charge by applying to the various banks.
What about banks abroad?
Advantage in Switzerland
One advantage that, for example, Switzerland offers compared to Germany, is the additional collateral. In Germany, a borrowed loan must be able to be serviced from current income.
Unemployment benefits may not be borne by the bank in Germany (because this provides basic security and this is inviolable in this country), but banks in Switzerland often rate that more generously.
Often a loan from a foreign bank is touted as a panacea. Of course, the reality is different. Regardless of where the bank is located, any reputable bank is interested in paying off loans only if a smooth repayment is highly likely.
The focus is often on banks from Switzerland or Liechtenstein. The often promised “credit without credit bureau” is of course possible here. The credit bureau is a purely German credit reference agency whose data foreign banks do not access. So if you have problems with the credit bureau, you can have a better chance of getting a loan abroad. Finally, when a loan is taken out, this new loan will not affect the credit bureau scoring.
Which factors play a role for creditworthiness:
- A seizable demonstrable income
- Other collateral
- A permanent residence in Germany
- Your own age
A free ticket for the unemployed and “credit bureau-sinners” is not abroad. Of course, the banks abroad still demand collateral. Banks from Switzerland, Liechtenstein or other countries naturally check the creditworthiness of customers even without credit bureau.
Look for a solution within the family or the closer circle of acquaintances. If a professional and creditworthy person declares himself ready to help you out, he / she can apply for a loan as the sole applicant. This helping person, as the sole borrower, gets significantly more modest interest rates than in a joint loan application with you as an unemployed. Ultimately, this person will then make the money available to you as part of a private loan within the family. If you then start a new job, you can still take over the monthly installments.