Would you like to apply for a loan during parental leave? An adequate installment loan or a liquidity injection until the next payday? For some couples, credit approval can be easy, for others, finding credit during parental leave becomes a hurdle.
We would like to use information to ensure that you do not reject credit institutions. Find out which credit hurdles are lurking and how you can solve problems. If regular financing cannot be approved, suitable special loans still remain.
Credit during parental leave – when does it work without problems?
Using credit during parental leave is not a particular challenge for some couples. Only the same requirements have to be met as for every regular loan. Evidence of a clean Credit bureau, a proper Credit bureau score, a positive household bill and sufficient attachable net income. Paradoxically, if there are any problems in meeting these requirements, there are political reasons.
When changing from child-raising allowance to parental allowance, income on parental leave was not conceived as a general benefit. It was intended to redistribute existing funds with the aim of promoting the elite. The aim was to create financial incentives for academic households. Elitist models of life should be promoted. The parental allowance is designed for the life model as exemplified by the ministers in charge.
The balance between career, work and family should be tempting for managers. “Proof of creditworthiness for lending through attachable income” was not relevant. The spouses of the ministers, one spouse is the professor and the other state secretary, were guaranteed a loan during parental leave. At these salary levels, overcoming the garnishment-free allowance is a matter of course – no matter how many children have to be taken care of.
Normal income and parental allowance – credit hurdles
There are basically two problems for the bank’s clerk if he is to grant a loan during parental leave. Question one, is currently attachable income demonstrable? Question two, will both parents start working again after parental leave? Many women choose to stay at home or work part-time, at least for the first few years.
The only problem is that adequate family income for normal earners is based on two employee income. In the beginning, the waiver of income still works. But, the parental allowance is only paid for a limited time and then ceases to exist. Only people who earn more money than they need for a living can meet their credit obligations safely.
In order for the bank to approve a loan, the lending must be assessed as safe. If this does not work without problems, credit institutions offer alternative options. A regular loan during parental leave with just one income from work may not be approved as an installment loan, but as a overdraft facility. Short-term loans are expensive, but they can be approved despite the increased credit risk.
Low-interest installment loan despite parental leave
Credit institutions may only grant loans that can be assessed as safe. The second rule of thumb is that the lower the interest rate, the lower the risk. Not only savers but also credit institutions suffer from the generally low interest rates. You simply don’t earn enough from a regular installment loan to be able to take the slightest credit risk.
It is possible to guarantee credit security via other sources. Many credit institutions are permitted to nominate a solvent guarantor or co-applicant if their own creditworthiness certificates are not sufficient. In the event of problems, the solvent co-owner is responsible for the loan granted and all costs to the bank.
Special loan despite parental leave – liquidity aid
The desire to take out a loan during parental leave is not always against the background of large amounts of credit. With a low income and despite parental allowance, it can become scarce for the household budget at the end of the month. How parents answer the question – pampers and baby porridge or the electricity bill – is clear to every responsible person. If the overdraft facility is exhausted, the electricity bill remains on the line.
However, a small loan could help, which, despite poor creditworthiness during parental leave, could be easily approved. The only thing that would have to be bridged with the loan is the period until the next salary. A suitable quick loan offer could be a mini loan from Great bank, GoodCash or SuperCredit. For example, at Great bank, new customers should apply for 100 to 500 USD quick credit with a 30-day term.
The amount of the work income does not necessarily have to show a attachable share of income. From a safe income of 500 USD, a loan request could be eligible. At least the question of pampers and baby food or electricity bills can be solved satisfactorily. Paying both is made possible by the loan during parental leave as a mini loan.
Installment loan without guarantor during parental leave – provider
If the “family carriage” needs to be repaired or an important major purchase is promptly inevitable, only installment loans can be the right loan offer. Small installments relieve the already weakened household budget. But which reputable point of contact offers access to fair loan offers?
Our tip for parental leave credit despite poor credit rating is Best Lender. The credit portal has the best reputation for serious credit brokerage. In addition, prospective creditors will find both easy access to bank credit (free loan comparison) and private lenders on Best Lender.
In addition to the higher risk appetite of private investors, the social component speaks for a fair credit opportunity from private. Investors who are familiar with the deprived start-up period with family growth have a great understanding of a loan during parental leave.