A loan despite parental allowance is not excluded. The contribution summarizes for you what realistic credit opportunities exist despite the receipt of parental allowance and which credit hurdles lurk.
Loans despite parental allowance – credit hurdle social benefits
Parental leave is a phase of life that is subsidized by the state and dedicated to intensive work with the new family member. Young parents can get used to the new role and have a good time with their children. However, many underestimate the financing needs in this phase of life. Income has disappeared and is only partially offset by parental allowance. On the expenditure side, the costs have increased significantly. Some things may be “inherited”, but nobody can avoid new investments when the family grows.
If you can get a loan despite parental allowance, you are lucky with an extraordinarily good income. A credit remains possible as usual thanks to the remaining income from work. However, for most people it will be difficult to convince a bank of their credit wish. The problem is not caused by misconduct on the part of the financial institutions or the borrower. The problem is the garnishment exemption limits.
The same rules apply to every loan request. The clerk may only valuate attachable income for the credit assessment. Parental allowance is not an ordinary wage replacement benefit, such as a pension, but a social benefit from the state. State social benefits, starting from Social Welfare, child benefit and parental allowance are attachable. Only the working partner’s net income remains for the credit assessment.
Garnishment-free allowances – Effects on credit opportunities despite parental allowance
With just one working income, the seizure allowance can quickly become an obstacle. In one fell swoop, the number of dependents increases by two people. If both parents were previously in full employment, the garnishment freedom increases by 610 USD to 1,660 USD. With an average earned income of just under 1,300 USD net, the limit of untangeability is far away for many.
Under these income conditions, credit security cannot be demonstrated through labor income. A guarantee from a solvent guarantor or property security offers a way out of the credit crunch. By assuming liability, the guarantor can compensate for the applicant’s lack of creditworthiness. Formally, he takes a liability risk, but in reality, a guarantee for a loan can be offered at low risk despite parental allowance.
The parents do not lack the money to pay in installments. The parental allowance comes on time, although it is not attachable, it can of course be used to pay the installments on time. The only thing missing is proof of creditworthiness, so that an ordinary loan from the house bank or from the credit comparison calculator is possible.
Even without a guarantor or high-quality property collateral, the loan search does not have to have failed.
Mail order loans despite parental allowance
Without a sufficient income or at least a guarantor, the offers for a loan in spite of parental allowance are very limited. The local credit institution can increase the overdraft facility to bridge a financial bottleneck. The agent can approve the overdraft facility in other ways than an installment loan. In addition to the overdraft facility, many have a credit card. Depending on the provider, financing options can be used via the credit line granted for the credit card. Repayment often has the option of switching to partial payments.
The problem with the overdraft facility or the credit card is the extreme interest rates. The food for thought is therefore intended as emergency financing and not as a permanent solution. Low interest rates only offer real installment loans. The credit offers of the mail order and department stores are often particularly low-interest. To promote sales, it is not just the interest rate that is turned. The access requirements for an installment loan, for shopping in the merchandise range of the provider, are often very low. The purpose of this loan choice is disadvantageous.
The private credit market offers a fair credit opportunity on a loan at one’s free disposal.
Private loan providers – parental allowance offers credit opportunities
The loan options of private investors have long been an integral part of the diverse loan offerings of a modern society. The portals offer serious credit opportunities in every situation. Private credit differs fundamentally from the usual process of commercial credit providers.
In spite of parental allowance, the loan is requested by publishing the loan request on one of the platforms. Investors now have the opportunity to get an idea of the borrower. Each investor assesses the eligibility of the loan request for himself, based on individual considerations. Investors who want to take as little risk as possible are looking for safe investments. Examples of safe investments could be the loan despite parental allowance or a loan for pensioners.