Credit during retraining
Getting a loan while retraining is not easy. In most cases, retraining is not paid for itself. The cost bearers are often pension insurance or the employment agency. There are already problems with lending with the two payers. You regularly transfer money to the retraining student, but these funds are not eligible for credit protection.
If the benefit comes from a previous Hartz IV source, this is an allowable social benefit and may not be regarded as income for any loan. In addition, in most cases the net income is not sufficient to support the creditworthiness. For a single person, the lower limit is a net income of 1,000 USD. Most retraining students do not exceed this level. Even if the retraining has been successfully completed, many retraining is not easier to find. There will not be a simple loan during the retraining, but there are options that can be considered.
Credit during retraining
Another denial of credit is unemployment, which usually arises after retraining. Especially people whose retraining has paid for the pension insurance have significantly reduced job prospects. The reason is not to be found in the environment, but their health is usually restricted. Most employers shy away from hiring a worker whose health is not entirely intact. People have a real chance to prove that their health restrictions do not affect their jobs.
When entering professional life, many workers go through temporary agency work and temporary employment contracts. A loan during the retraining therefore has little chance of success. This does not work on its own. Here are additional sources of income. This could be income from disability insurance or income from leases and rentals. With the monthly income that a retraining student receives, only a guarantor or a co-applicant can grant a loan during retraining.
The prospects for a loan during retraining
Anyone who finds a guarantor in their private environment should know a lot about it. A guarantee is therefore associated with risks for the guarantor. If the borrower defaults, the guarantor pays the loan with his own assets. In addition, his own credit rating is reduced by the guarantee, since this is entered in the Credit Bureau. If he needs a loan himself, the bank will include the guarantee in the guarantor’s household account. The result then shows that the guarantor himself needs a guarantor. In addition, the Federal Court of Justice did not consider a guarantee to be legal because the guarantor has underwritten the guarantee financially. Only the one guarantee should be given that can easily pay the loan in the event of a default on his own obligations.
The option to include a co-applicant in the loan agreement has about the same risks as with the guarantor. If, for whatever reason, the student does not continue to pay the loan, the co-applicant must continue to pay. If there is a familiar relationship between the loan seeker and the co-applicant, such as the spouse, the spouse could take out the loan and would therefore have good control over the payment arrangements. Not only that, the credit conditions will also be better, since a co-applicant must also be solvent like a guarantor, have a clean Credit Bureau and can work indefinitely.
Another option that is becoming increasingly popular is P2P loans. These are private loans that are invested by private investors. Not to be compared with a private loan from family and friends. There are some portals on the Internet where private investors practically lend their money to loan seekers. Private investors who make good returns with their lent money. The meager savings rates are avoided with private money lending. The person interested in credit creates a meaningful profile and expresses his or her credit request correctly. With a little luck, private lenders will deposit the loan request. These are usually several donors and the amounts are not too high, but with several investors the desired loan amount quickly comes together. The rest of the procedure is handled by a bank. This form of credit is correct and reputable.
If you cannot find a guarantor or co-applicant and cannot show any property, you have to go to the pawnshop. If you have high-quality electronic devices or precious jewelry, you can lend these valuables to a pawnbroker with an urgent need for money. The pawnbroker does not ask about income, Credit Bureau or work, for him only the valuables count. If you want your things back, you have to meet the deadlines, otherwise the things go to an auction.