Loans with Guarantee

Loans with a guarantee are often the way out of a credit crunch. A credit gap can be closed and a loan becomes eligible. Nevertheless, it is not always easy to find a solvent guarantor. In addition, the guarantee implies additional moral responsibility for the borrower. Therefore, possible alternatives should not be frivolously excluded.

Loans with guarantee – use possible alternatives

Loans with guarantee - use possible alternatives

Loans with a guarantee are basically not a bad option. Nevertheless, it is uncomfortable to burden others with their own financial problems. In addition, any guarantee involves an unmanageable risk to the guarantor. Hardly anyone, apart from civil servants, can be sure of his job. In addition, nobody knows their own health future. Each loan is therefore always at risk of becoming distressed.

In many cases, the bank only proposes a guarantee, as it represents the easiest credit protection for them. Similarly, in many cases, collateral would be possible to secure the loan. For example, a car letter or pension plan could be used as security. It would also be conceivable, of course, the assignment of a landlord or the land register.

Even a slightly higher interest rate should make the collateral security worth the borrower. Loans with a guarantee, which only benefit the borrower, should therefore also be secured by a residual debt insurance. Alternative forms of credit are also worth considering.

Compare alternative providers – avoid the guarantee

Compare alternative providers - avoid the guarantee

Alternative providers, without a bank, may be helpful. The private loan is often possible with lower hedging obligations. Contacting private investors is easy to make via one of the major portals. Private investors are looking for safe investments, but they are more risk-averse than banks. Almost every loan request can be realized on its own.

If the credit is a consumer desire to be satisfied, then often enough a small loan from the Internet to do so. Small loans are convenient to apply for and only undergo a simplified credit check. Even without collateral, loan amounts of up to € 5,000 can be approved without difficulty. The payroll and the clean Schufa are enough.

Investments requiring a guarantee

Investments requiring a guarantee

For example, if you want to buy a house, you can seldom afford it at your own expense. For large loan amounts, every interest-saving option is important. The big investment guarantor is therefore an important instrument for significantly improving creditworthiness. The steadily increasing property value of the property limits the liability risk for the guarantor. If the loan becomes distressed, then there is a good chance that the sale amount will cover the loan.

Loans with a guarantee for smaller sums should be reserved for cases where there is no other way. Nice examples would be the credit for the junior driver’s license in training or the credit for pensioners. On their own, both groups manage to pay the loan, but the grant is tied to a guarantee.

Online Loan for Trainees

Many people looking for an online loan for trainees face the problem that their income is too low and their future too uncertain to convince the bank of its creditworthiness. For this reason, it is usually very difficult to find a suitable lender.

loan comparison

loan comparison

Similar to another loan, a comparison of the various providers on the Internet should also be carried out for an online loan for trainees. Above all, it is advisable to pay attention to the length of the term, the possible loan amount and the amount of the monthly repayment installment. If the desired amount of credit is only a small sum in the three- or four-digit range, lending should not be a major problem.

Once the appropriate online loan is found, the trainee can go to the bank’s website, complete the application and then send it directly to the bank. Now an immediate credit check is carried out, whereby in particular the private credit should play a crucial role. If there are no negative entries, the online loan for apprentices can be provisionally approved.

For a final decision, the trainee would have to send his proof of income and other documents to the bank. This would have to be done by mail. In this context, care should be taken that lending can only be granted to persons who have reached the age of 18 years. Loans to minors are generally not granted.

credit conditions

credit conditions

An online loan for apprentices must be paid in regular monthly installments. These installments are not only the repayment amount but also the interest. The latter can in turn be subdivided into the borrowing rate and the other costs or fees that arise during the lending and / or during the term.

For this reason, the interest rate to be paid by the borrower is also called the annual percentage rate. Often, banks will only grant an on-line loan for trainees if the end of the term does not extend beyond the end of training. Otherwise, the trainee would have to find a guarantor or a co-applicant who ideally should come from his own family. Of course, this person must meet the criteria for a normal installment loan and have, for example, a positive private credit and a regular, sufficiently high income.

In a car loan, the situation is slightly cheaper dar. Here is the loan amount of a material value, which can be seized in case of persisting arrears of payment. Buying a new or used car is a very common reason for wanting an online loan for trainees.