Small Job Loan Comparison January 2020

The number of low earners in Germany is not insignificant, and the trend is rising. Those who cannot make ends meet with their “normal” job often get a second job on a 400 USD basis.

But the number of those who are employed on a marginal basis is not exactly small either. A loan for mini-jobbers is therefore usually given by banks and credit institutions only within the limits of discretion, with sufficient security and a solid credit rating. However, there are also providers who grant loans even with poor credit ratings.

Credit and low income contradict each other

Credit and low income contradict each other

The problem with loans for low-income earners is obvious: the income is often just enough to cover the cost of living. Reserves and savings are then generally not available, sometimes they are supplemented by unemployment benefit II. Here the question arises: “How should the loan installments be raised if there is already little money anyway?” And yet there are also mini-jobbers and low-wage earners into the predicament that they need money for urgent purchases and can then rely on a loan for marginalized workers. The individual requirements as well as the creditworthiness as well as the possibility to provide a guarantor decide on the chances of getting a loan for mini jobbers.

Factors on which lending may depend

Factors on which lending may depend

Almost all banks define their basic requirements for loans such as installment loans, call credits or overdrafts according to standardized requirements. For example, legal age, a regular, secure income of a sufficient amount is required to be able to generally take out a loan. The credit line is also based on the amount of income and also takes into account other current loans that are repaid by the borrower.

This can be seen from the private credit bureau information. A loan for 450 USD jobber is therefore not one of the usual offers of banks, but rather the exception to the rule. This is where a precise check is carried out to determine whether the personal and economic conditions permit borrowing at all and a guarantor who can help in the event of repayment difficulties or default on the part of the borrower may be required.

Creditworthiness – A word with enormous richness

Creditworthiness - A word with enormous richness

The creditworthiness denotes the creditworthiness of a person and is queried by the banks and credit institutions at the corresponding institutions such as private credit bureau. It depends on the data stored there whether a loan for mini-jobbers can be considered. If, for example, other loans are already running or there is a negative private credit bureau entry due to payment problems, all chances for a loan for low earners are wasted in advance.

Some online loan providers for instant loans like to advertise with the slogan: credit with poor credit rating. At first glance, this may sound tempting, but it can quickly become a debt trap if your own repayment options are viewed with a blue eye and without sound planning. In addition, very high debit interest rates are applied to a loan without private credit bureau, because the credit institutions or credit intermediaries want their special service to be properly paid for. If you have a bad credit rating, you should refrain from loans, because the situation will not get better with a new borrowing.

Loans from private individuals via online loan brokerage platforms

Loans from private individuals via online loan brokerage platforms

In order to get a loan for 400 USD jobbers, there are various online platforms that offer loans from private to private. A loan application can be entered here, and the monthly installment can also be flexibly determined. Private lenders now decide whether to invest money in this loan and receive interest on it. The loan amount is usually realized more easily by many partial amounts from different private lenders.

Of course, private lenders also pay attention to the creditworthiness of the borrower, because they want to see their money again with interest. The chances of getting a loan for mini-jobbers are higher with these platforms, but only if there is no bad creditworthiness and the borrower’s statements clearly show that he can make the repayment.

Unemployment Loan – Where Can the Unemployed Borrow?

For those who have suddenly become unemployed, it is problematic that current expenses such as rent, utilities, insurance, cars, cell phones and internet costs must of course continue to be paid and, on the other hand, through unemployment, the income by 40% to now 60% (67% with child benefit entitlement) have collapsed to cover these costs. If the unemployment benefit is still sufficient in the first phase, it usually becomes tight at the latest when the transition to unemployment benefit.

What options do I have to get unemployment credit?

What options do I have to get unemployment credit?

Credit from the bank

When you go to a bank or other credit institution to apply for a jobseeker loan, you know that two factors are particularly important. First: is the private credit bureau all right? Second, is there a permanent, permanent contract with an acceptable income? If one of these two factors is not given, it is almost impossible to get a loan. There is no work, so a big negative point.

Unemployment risk

It is particularly difficult for some groups to obtain a loan, for example the self-employed, students or unemployed. These people represent so-called risk groups for banks. The problem is particularly pronounced for the unemployed, since they do not have a regular income and in most cases it is not foreseeable whether unemployment will persist for a long time. Therefore, hardly any bank will grant a loan to an unemployed person. A loan for unemployed people without private credit bureau information is generally not possible, since foreign lenders do not provide private credit bureau information for such contracts, but still pay attention to the creditworthiness of the applicants. Even small loans for the unemployed cannot be obtained with a negative private credit bureau without a guarantor.

In order to be able to apply for a loan in the event of unemployment (even without private credit bureau), a minimum income of USD 850 should be proven, which is simply not the case for the unemployed. The only way to get a loan is to use a guarantor. Its task is to guarantee the borrower and, if the borrower can no longer service the installments, continue to pay them for him. The guarantor should of course have the appropriate credit rating and a good private credit bureau base score.

Should one take out a loan as an unemployed person at all?

Should one take out a loan as an unemployed person at all?

Unemployment is mostly unexpected. Even a permanent employment contract is no guarantee of a lifelong job. Particularly in the construction industry, where there are often too few orders in the winter months, some of the workers often have to be made redundant. But any other company in any industry can experience sudden job cuts and layoffs. The case of the drugstore chain shows that it can hit multimillion-dollar companies and their tens of thousands of employees hard and unexpectedly.

How much credit can I afford as an unemployed person?

How much credit can I afford as an unemployed person?

The amount of the loan granted to you depends largely on your last income, the remaining duration of the unemployment benefit I paid to you as a job seeker and your living expenses.

The benefit fee is based on your gross income for the past 12 months (capped at a maximum of $ 71,400 west / $ 60,000 east, 2014) minus a flat rate for social insurance of 21%.

The benefit rate is 67% with child benefit entitlement or 60% without child benefit entitlement.

The cost of living is made up of banks from warm rent and a flat-rate household allowance of around $ 700 for the first person plus $ 300 for each additional person. This table with some example values ​​serves for clarification. Since every situation in life is different, you can download this Excel spreadsheet to supplement it with your own financial data.

Loan without private credit bureau for the unemployed?

Loan without private credit bureau for the unemployed?

As already described above, the chances of a loan without private credit bureau for the unemployed are not very good. With a negative private credit bureau, it is very difficult to get one of the coveted urgent or instant loans. In the past, the borrower allowed himself irregularities in some cases, which led to the negative entry at private credit bureau.

There are offers in this area, but they should be checked carefully so as not to fall for black sheep. It becomes dangerous if fees are requested before the money is paid out. At the latest you should do the long search. You can find more information on this in our article on small loans without private credit bureau.

Loan for early retirees

What is early retirement?

What is early retirement?

In contrast to the regular old-age pension, which comes into play when the statutory age limit is reached and is intended to secure a livelihood after leaving the working life, the early pension is an early pension option if the employee cannot work until the age limit is reached due to health reasons. Here you will find pension models such as disability pension or disability pension. However, those who retire early do not receive the full pension rate, but deductions are made.

Income and age are important for early retirement loans

Income and age are important for early retirement loans

Early retirement cannot be classified according to a certain age. Young people are already on early retirement because they are no longer available on the labor market. For banks and financial institutions, the granting of loans to this target group therefore depends on the main factors of pension amount and age. The amount of the early pension is based on the earned income and this can vary greatly depending on the job profile, qualifications and payments into the pension fund. The age and reason for early retirement are also factors that play an important role in terms of the term of the loan for early retirees.

Loan offer for early retirees

Loan offer for early retirees

Loans for early retirees are not part of the standard portfolio in banks’ loan offerings. The interested party must therefore inquire with the preferred bank whether they can take out a loan based on their requirements. Here, creditworthiness, pension amount and life expectancy decide on the grant. If the amount of the pension or life expectancy is rather low, there are still opportunities if collateral such as your own house or other valuables is to be used or a guarantor for the loan can be found. A loan for early retirees with poor creditworthiness has no prospect of success from the outset.

Few direct banks offer installment loans for pensioners, but they are geared towards short terms. The interest rate varies depending on the creditworthiness, often the payment of installments is required by taking out insurance. A comparison of the providers is worthwhile, because criteria such as early loan repayment, the suspension of installment payments or special repayments and loan contract fees are also important for the decision.

Offers that promise a loan for early retirees without private credit checker can be pitfalls, because it is not uncommon for the supposed relief to hide much less favorable conditions that make life difficult.

Is my credit score good? Understand credit scores in Canada.

 

 

Whether you need to apply for a credit card from a store to buy office furniture for your small business, or you are looking for capital to be able to make the biggest investment decision of your career, your score credit will help you determine your eligibility and that of your small or medium business.

What is a credit score?

What is a credit score?

A credit score is a 3-digit number that is derived from a mathematical formula that specifically indicates your loan and bill payment history. Two of the largest credit reporting agencies in Canada are: Equifax and TransUnion which use a scale ranging from 300 to 900.

What qualifies a good credit score?

What qualifies a good credit score?

The higher your credit score, the less risk you consider the lender to be, and the more likely you are to be approved for a small business loan and benefit from lower interest rates. For information :

  • 300 to 559: low credit score
  • 560 to 659: passable credit score
  • 660 to 724: good credit score
  • 725 to 759: very good credit score
  • 760 and +: excellent credit score

How do you determine your credit score?

How do you determine your credit score?

  • Your Credit Card Repayment History: Payment history includes keeping a balance on your credit card or if you have missed payments. The rule of thumb is to make your bill payments in full and not to reach your credit card limit.
  • Unpaid debts: be it a student loan, or unpaid lines of credit or credit card, any unpaid debt will affect your credit score.
  • The number of times you ask for your credit score: whether you believe it or not, your credit score will be affected each time you ask for it; so be careful to make sure you are up to date with the details of your report, but only do this once a year.
  • Your Credit History: Your credit history begins when you acquire credit and covers the entire period in which you have been in debt.
  • Any declaration of bankruptcy: if there is an archived bankruptcy, this will negatively affect your credit score since you will be considered as being a higher risk for the lender.

How to avail Loan for trainees?

Which requirements have to be met

Which requirements have to be met

Credit is credit and, by law, the borrower must be of legal age to borrow. In addition to the age of majority, creditworthiness and regular income are among the important conditions that must be met by the borrower. With a negative private credit bureau entry, apprentices do not have good cards in credit questions. The requirements for income vary depending on the loan offer.

For example, some providers only grant online credit to trainees if the apprenticeship has existed for several months, usually beyond the probationary period, others are satisfied with the fact that an apprenticeship contract exists and other providers explicitly set the minimum income level. In the event of creditworthiness problems as well as insufficient proof of income, collateral, guarantors or co-applicants can increase the chances of the loan approval.

Apprentice loan with third party guarantee

Apprentice loan with third party guarantee

If one of the important basic conditions for lending (secure income, income level, takeover guarantee, creditworthiness) does not exist, a guarantor can tip the scales. The guarantor is a person of full age who is legally competent in terms of jurisdiction. This can be a legal guardian, but also a relative or another person with whom the borrower has a special, trusting relationship. The guarantor undertakes, in the event that the borrower is unable or unable to repay his liabilities on time, to perform the service to the bank.

Specific trainee loans are characterized by tailored conditions. Direct banks in particular address various target groups with loan offers, which means that the terms and conditions for the special loan are based on the individual requirements of the target group. This includes the loan for trainees, which is also offered under this name. The conditions are tailored to the target group. The loan interest is much lower than, for example, a loan for employees or employees, the loan amount ranges between 2,000 and 5,000 USD and the term is limited to a few years.

Online loan portals for personal credit for personal credit

Online loan portals for personal credit for personal credit

Online loan agencies, where private lenders and borrowers meet, also create an incentive for trainee online loans. Portals like Auxmoney or Lendico are known and trustworthy. Loans with creditworthiness problems are also possible in principle, although it is ultimately up to private investors whether they realize a loan application or not.

The loan interest is determined according to the creditworthiness of the loan seeker. The human component counts very strongly on these credit marketplaces, which is why the online loan for apprentices is often also less bureaucratic and easier to obtain. The understanding of difficult life situations and the interest in help have a higher priority than the purely economic aspect.

Short-term credit / smallcredit for trainees

Short-term credit / microcredit for trainees

Smallcredit is characterized by its small loan amount, which can vary from 200 to 1,000 USD. They are also known as short-term loans if the repayment takes place within a few weeks or months. However, this is primarily an interim financing or a short-term bridging, ie the borrower should really be able to repay the money quickly. 

Tips to find the right online loan for apprentices

Tips to find the right online loan for apprentices

The low income and the uncertainty regarding a permanent position after the training and thus regular income should not be lost sight of with the online loan for trainees. Untrustworthy providers who advertise with large amounts of credit or loans with poor credit ratings only have their own financial interests in view and can be a way into the debt trap. So here are some tips on what loan seekers should look for in online loan comparison:

  • Favorable loan interest
  • Comparison of borrowing rate and effective annual interest rate
  • Total cost of the loan for trainees
  • Residual debt insurance yes / no
  • Short terms
  • Manageable loan amounts (small loan)

Deducting loan interest – what is and what is not?

The reasons for this may be complex, but a main reason for the Germans’ willingness to borrow is likely to be the current interest rate on loans, which is currently at a low. The German protection association for general credit protection – or short: Private credit checker – has certified a significant increase in loan financing in recent years. The majority of these loans are easily repaid by consumers, but many borrowers forget that they can also claim the corresponding loan interest for tax purposes. However, there are a few important things to consider that we have put together for the reader in a short article.

Conditions to be met

Which conditions have to be met with real estate loans in order to be able to deduct interest

Which conditions have to be met with real estate loans in order to be able to deduct interest

Loan interest that can be deducted from tax can be found primarily in the area of ​​real estate financing. The corresponding tax relief on the part of the declarant is also very useful here: if he makes an investment in a condominium, a single-family home or a new apartment or house, he can claim any loan interest while renting the property. In this case, the said loan interest can be entered as advertising costs in the Vuv form – or income from renting and leasing. Potential renovation or renovation projects for capital investments in the form of real estate that are rented out can also be made tax-deductible.

This basically includes all loans that are used to preserve the value or increase the value of the property and to continue to generate rental income. It is of central importance, however, that the relevant borrower only claims the respective loan interest, but no repayment installments. Furthermore, the declarant must prove to the responsible tax office that the loan in question has actually been used for the stated purposes – borrowers of real estate loans are therefore advised to maintain a separate real estate account to secure this requirement.

Tax deductible in other areas possible?

Tax deductible in other areas possible?

Moving loans can also be deducted from tax if certain conditions are met. If, for example, moving to another city or even a second home becomes necessary due to the pursuit of professional interests, and if a moving loan has to be taken out for this purpose, then its loan interest is also tax-deductible. The same also applies to loans that have to be taken out in order to pay a brokerage commission and to pay court and lawyer fees.

The self-employed and freelancers, who mainly use their vehicle for work, can also claim car loan interest for tax purposes. Loan interest for predominantly privately used vehicles cannot be deducted from the tax. Similar to the car loan, it is also the case for investment loans in professional training, such as student loans or loans for office equipment – here, too, the state enables the legislator to be tax deductible in the form of advertising costs.

Which loan interest

Which loan interest rates are in principle exempt from tax deductibility and according to which a distinction is made

Which loan interest rates are in principle exempt from tax deductibility and according to which a distinction is made

Especially in the private sector, it is not possible in many places to make interest tax deductible. This applies, for example, to loans for personal events such as weddings or private trips, as well as for personal loans. Nor can loan interest payable for the financing of privately used property be claimed for tax purposes. Even the popular overdraft facility with its generally very high overdraft interest is – in contrast to popular belief – in no way tax deductible. Because the legislator makes a fundamental distinction not according to the type of the corresponding loan, but according to the use of this for private or commercial purposes. If the respective loan is used for an investment purpose, the borrower’s loan interest can be calculated with tax deductibility.

Long-term loan up to 12 years – Personal loan

The longer the term, the lower the monthly installments

The longer the term, the lower the monthly installments

An online loan with a long term is always an installment loan. Long terms are intended and useful for amounts in the middle and higher range, for small amounts they usually make little sense. The repayment over several years enables low monthly installments and thus more freedom for the borrower, since the financial burden is not so high. However, the committed borrowing rate has a say as well as the annual percentage rate, because the amount of these two values ​​provides information about the total cost of the loan. However, compared to short-term loans, the overall cost of a long-term loan is generally higher.

The online loan with a long term offers an incentive, especially for large purchases and investments, privately or commercially. The purchase of a new car, a condominium or company machines are examples that justify long-term financing, since they enable quick capital release with slow repayment. A debt rescheduling loan, in which several individual loans are combined to form a total loan, can also be created as a loan with long terms.

Long terms mean long credit commitments

Long terms mean long credit commitments

Home builders or homebuyers can sing a song about the loan commitment, because depending on the amount of the loan, they pay their installments up to 30 years a month. This is also a psychological burden in the long term if living conditions change, earnings decrease or drop completely, for example due to unemployment. Therefore, the online loan with a long term is always a computing task that has to be solved.

The points that should be clarified before concluding such a loan contract include, among other things, possible insurance in the event of death and illness, which can be realized through residual debt or life insurance, as well as the prepayment penalty, which the bank pays in the event of early cancellation or termination of the contract can request.