Unemployed people have a rather poor starting position when it comes to applying for a loan. A regular income is not available or only in the form of transfer payments, whereby no repayment can be financed. Before anyone goes to work without a job looking for a loan for the unemployed, it should be considered whether this is really necessary and, if so, how the loan should be repaid.
Where do you get a loan for the unemployed?
Banks only rarely grant loans to the unemployed, and if so, then only in those cases where the help of third parties can be claimed. Nobody should be surprised about that, because ultimately the bank protects itself not only from a threatening total loss of credit, but also from the borrower from hopeless over-indebtedness. This should think carefully before, whether it would not be better to postpone taking a loan at a later date, if the income situation may have improved.
Those receiving transfers from the state have a regular income, but this can not be used to secure a loan for the unemployed. Transfer payments are considered non-attachable, which means that the bank can not rely on it should the borrower default on its installment payments. In addition, transfer payments in the rarest cases are in any case sufficient to serve credit obligations in addition to the cost of living.
But if you can not do without a loan for the unemployed, you need help. For no bank will lend in such a case, if no other collateral is available, a loan. This assistance may come from a guarantor or co-applicant, both of whom are responsible for the timely and contractual repayment of the loan.
However, the guarantor, unlike the co-applicant, is only liable if the repayment of the loan is actually in default. In this case, he has to take over the debt service, if necessary until the complete repayment of the loan.
A co-applicant, on the other hand, is liable from the very beginning and therefore has to make sure that the installments are paid on time and in full from the start of the contract. Otherwise, he too can be held responsible. Of course, it requires a certain relationship of trust between applicant and co-applicant or guarantor, which is why these roles are often taken in practice by relatives or close friends, so that the credit for the unemployed comes about.
However, they must bring with them collateral, exactly those that the applicant would actually need, otherwise no credit can be granted for the unemployed. Specifically, this means for the third parties involved to have a regular income from employment, which must be proven by payroll. Furthermore, there must not be a negative credit bureau entry in the Hilfsspilligen indicating a loan in progress, unless the income is high enough to serve two loans without any problems.
Loans for goods
One form of credit, which can also be used as a loan for the unemployed, is the merchant credit. This can be recorded whenever dealers offer financing for their products. In practice, these are usually expensive electrical appliances or articles in the field of consumer electronics. Wages and salaries are only required in the rarest cases, if the financing is to be handled, for example, via a bank.
The credit is secured by the retention of title, which means that the item must first be paid in full before the owner or buyer becomes the owner of the item. Otherwise, the dealer may reclaim his property.