We want you to get the credit you need, even though your income tends to be low-income. Find out which loan offers give you quick liquidity. – What to look for in installment loans and who grants installment loans on moderate terms.
High Income Loan – Problem
Credit institutions do not like to give credit without proof of a high income. Low-income recipients can get into financial difficulties even with small income fluctuations. This would significantly jeopardize the loan repayment. High-risk loans are not granted by regular credit institutions. For regular credit, an income level that does not endanger a secure repayment, even in the event of minor turbulence, is required.
In addition, regular credit providers reserve the right to attach a portion of income for installment loans. The attachment of income serves as a “bargaining chip” if the borrower refuses or is unable to service his installments. Up to the amount of the garnishment exemption limit, the bank could use the employer directly if necessary. The view of the income level at the disposition is less meticulous.
In contrast to the fixed installment loan, the overdraft facility remains flexible in every respect. As a regular offer, for credit without a high income, the overdraft facility allows the clerk clear scope for his credit decision. The scope arises because the bank remains able to react very quickly in the event of a problem. It can make the money due without delay and on top of that earns considerably more from the overdraft facility than from the installment loan.
Overdraft facility exhausted – quick credit despite small salary
With a small income, a larger bill can throw the household budget out of balance. This is not just a theoretical problem in risk assessment for installment loans, but a very real problem for many households. With a small income, the disposition does not offer much room for maneuver. It is not uncommon for the account to be in the red after the running costs have been paid and fresh salaries have been received.
If there is a slightly larger invoice in the mailbox in the middle of the month, it will be scarce for the rest of the month. The solution to this short-term liquidity problem is the business model of various providers of short-term mini loans. Credit without high income is not a problem with the special offers. For example, Great Bank specifies the minimum “safe” income at least 500 USD per month.
The mini credit or micro credit are also moderately concerned with the other requirements of the credit check. Credit security arises from the granting of very small amounts of credit. It is easier for everyone to pay back a small sum and through short terms. The psyche of people also ensures safe lending. For many, the mini loan is the lifeline as soon as the checking account no longer pays.
Blocking this credit opportunity just because a few USD would not be repaid or delayed would cause the fragile household budget to collapse. According to the factors mentioned, the credit check is moderate.
Microcredit paid out in 24 hours – the offer
The example of a convenient mini loan is taken from Great Bank’s offer. Subjectively, the Berlin company currently offers the most extensive range. First-time applicants can hope for a quick credit decision, as Videoident is offered for legally binding loan applications.
With the first application, 100 to 500 USD of credit without high income should be applied for. The company specifies the term for the first approved loan at 30 days. At least theoretically, even for the initial application, the loan payment could be made on the day of the initial application. There is a chance thanks to the application via Videoident and the simple credit check.
Mini-credit becomes really quick and flexible for existing customers. After the first successful loan project, Great Bank switches to “automatic”. The credit check and payment will be activated within 30 minutes. In addition, provided the creditworthiness is sufficient, the possible credit line expands. Up to 3,000 USD loan, repayable in up to six payments would now be possible.
Installment loan – Loan without high income
Low-income installment loans would be possible from a few banks. The alternative, if credit and income proofs do not succeed with flying colors, would be private credit. The credit portals Best Lender and Good Finance create the reputable environment for lending by private lenders. We specifically recommend Best Lender for the desired loan without high income, because Best Lender combines offers of private and bank loans.
A suitable offer can presumably be taken from the Best Lender loan comparison. For brokered credit from a bank, Best Lender does not charge the borrower any agency fees. If it doesn’t work, proof of income of just 1,000 USD is enough to receive offers from investors on the credit marketplace. A loan application is made. It should be properly written and include a coherent repayment concept.
Private investors do not only make decisions based on economic criteria. Important economic indicators, proven by free certificates, should already be correct. But they are not all that private lenders use when making their loan decisions. The human side – gut feeling – also decides.
It is not without reason that private loans have the reputation that they can also be granted if banks do not offer credit opportunities for loans without high income.