Credit without regular income

Getting a loan approved without a regular income from a lender is extremely difficult and requires not only some extra effort on the part of the applicant, but also additional collateral that it must provide. Whenever a loan without a regular income is requested by the borrower, the alarm bells ring at banks and credit institutions, because if the borrower of the loan has no regular and disposable income, it is also questionable how the loan amount and interest payments ever paid back to the giver of the loan shall be. For this reason alone, the successful application for a loan without regular income is very difficult, even if the borrower can provide additional security for the lender.

Alternative credit options or additional collateral as a solution

Alternative credit options or additional collateral as a solution

If you do not have a regular income but you need a loan because of necessity, you should look at various banks to see if and to what amount a loan without a regular income is issued. Prerequisite for such a loan is in any case an immaculate credit bureau entry, as well as no existing arrest warrant due to outstanding debt payments. However, both securities are used more as a basis in credit, as a convincing argument for the lender to issue a loan to a borrower, if he has no existing employment. Whether or not a loan is granted, however, depends not only on the financial situation of the borrower, but also where and in what amount this is requested. Very small loans are sometimes paid to people without an existing employment relationship, so that the loan amount is an important criterion for rejection or for the success of the loan application.

However, the history also goes down considerably in the rating of the borrower. If this applies to the long-term unemployed, and if his existing qualifications do not require immediate employment, the bank also significantly reduces the creditworthiness of the respective person. Without regular income there is no creditworthiness of the borrower, which is why such rejections are not uncommon here, but rather successful cases are an exception. If the borrower is unable to obtain a loan without a regular income, there are two attractive alternatives, which, however, both require the help of relatives or friends.

With no income on a surety or personal credit dodge

With no income on a surety or personal credit dodge

To compensate for the borrower’s lack of credit, many lenders give the opportunity to use a guarantor on their own and the credit burden associated with the loan. The guarantor is recorded in writing and must pay in the event of default on the part of the borrower completely for its debts with his private assets. This guarantee lasts for the entire term of the loan, which is why it can be very difficult to find a guarantor, especially at higher sums. Since a guarantee for the guarantor always involves a great deal of risk and a certain amount of trust, even members of the closest relatives usually shy away from being used as guarantors.

For the loan without regular income, however, the additional security of the guarantor for the banks is elementary, which is why the second alternative is only a private loan. However, someone must be found here who, despite knowing the current unemployment of the borrower gives him the agreed sum.