Can unemployed people apply for a loan?
Anyone can get into unemployment through no fault of their own. The company closes, redundancies are due or there is simply no new job after the expiry of a temporary contract. Despite unemployment benefits or Lite Bank, most of them look financially tight in such a situation. However, the cost of living remains.
The financing of a house in particular cannot simply be put on hold, household appliances can be defective and must be purchased again. It may also be the case that payment installments from other obligations must be paid. To cover the costs, the unemployed only have to take out a loan. However, unemployed people fall through the credit check at the banks. So how can unemployed people successfully box through a loan application?
How to get a loan in unemployment
Unemployment is followed by financial difficulties. The way out can be taken by means of a loan. In this way, job seekers can create a financial buffer in difficult times. However, the loan application represents a small hurdle. Banks in particular are careful when applying for a loan from the unemployed and often reject loan applications after checking their creditworthiness. In principle, there is no unemployment loan at the institution bank.
However, you should not be discouraged. There are numerous credit providers online for whom the credit check is irrelevant. Loans can also be taken out from a bank if sufficient security can be provided during unemployment or guarantors agree to be liable in the event of insolvency. However, unemployed people should pay close attention to loan terms. So that the costs for the borrowed money are not too high, the interest should be as low as possible.
Benefit from a provider comparison
To ensure that interest rates are in favor of the borrower, a loan comparison is recommended to every applicant for a loan. There are numerous credit providers online, but there are various contractual terms associated with the offers. To find the right loan terms in times of unemployment, the options have to be compared. Of course, rejections can also follow after a loan application. However, unemployed people should not be discouraged by this.
There are also a lot of black sheep in the credit industry. All the more true: keep your eyes open when comparing credit providers. Above all, credit intermediaries should be avoided.
They usually charge fees to locate an option on a loan and report back after a few days with a negative message. In this case, you have spent money and still have no credit.
Waiver of Credit Bureau information on an unemployment loan
The main reason why banks reject unemployed people’s credit applications is because they pay attention to their clients’ creditworthiness. On the one hand, this includes querying the creditworthiness, but also requesting information from Credit Bureau. Since the creditworthiness is determined by the amount of income, the banks’ refusal of a loan is obvious. Although unemployment benefit or Lite Bank covers the cost of living, banks cannot declare the payments as their own income. If a few euros remain at the end of the month, the amount is so small that it is almost impossible for unemployed people to repay a loan. Insolvency is therefore within reach. Banks avoid this risk by not even approving a loan application. The same happens with a negative Credit Bureau entry. An international loan is an alternative to a loan from the bank.
How does a credit comparison work?
Online you will not only find credit providers, but also the chance for unemployed people to avoid a credit check. To compare the providers, you simply have to enter the desired loan amount in a comparison calculator and determine how long you want the loan to run. Alternatively, you can also specify the amount of the monthly installment payments. With this information alone, you will receive the offers with the cheapest interest within a few seconds. However, it can happen to you here that you are rejected on the basis of the Credit Bureau information.
Another way is to apply for a loan from abroad. As the Credit Bureauauskunft is a German institution for the protection of banks, it does not apply to a foreign loan. Likewise, the loan is not listed in the Credit Bureau. This means that the unemployed can increase their chances of getting a loan.