If you are young, you want to enjoy life. Having parties, going on vacation, setting up your first apartment, driving a great car. But all these things that can be found around a modern and young lifestyle usually cost a lot of money. Money that may not yet generate income as a young person is still new to the job or is still studying or studying.
In order not to have to turn your dreams and desires into the wind, it can make sense to take out a loan for young people. Since this is not always very easy, we have put together all the options for a loan for young people.
Why banks don’t like to give young people a loan
Many banks and savings banks are not happy when you try to get a loan for young people as a young person. You see not only the risks that arise from age, but also the risks that income brings with it in many cases. Because most young people have no fixed and above all no high income. In addition, many young people are still in the “orientation phase” and therefore handle the available financial means very laissez faire. The banks are therefore afraid that the installment payments will not be made on time.
Almost nothing works without support
Most banks therefore always want a guarantor for a loan for young borrowers who is older than the borrower and also has a good credit rating. Often it is the borrower’s parents who are particularly interesting for the banks. They are particularly close to the young borrower, know him and his financial circumstances and therefore have the best insight into the financial interests of the young borrower. If the latter is unable to pay on time, it is not difficult for the parents to step in promptly and keep inconvenience away from the borrower.
If the parents or other adults offer themselves as guarantors, a loan for young people can be taken in a variety of ways. It then depends on what the loan is needed for and what loan amount is requested. With a good credit rating, the bank will not give any major restrictions in this regard.
The consumer loan
Only consumer credit can be taken out as a loan for young people without much support. The advantage of a consumer loan lies in the flexible handling of income. It is not important what the amount is as long as it exceeds the magic mark of 450 USD a month. In addition, all that has to be done is a good private credit checker.
The consumer loan as a loan for young people offers the opportunity to finance consumer goods. The first own apartment can be set up with this loan, as can the laptop or smartphone purchased from the technology market. Depending on which items are to be purchased.
Consumer goods that are financed with the help of credit always count as security. If the loan is not repaid on time, the trader who granted the loan can claim it back. This also gives young people the opportunity to take out a loan without the support of their parents.
Does a loan from abroad work?
If the borrower’s private credit checker is not optimal and no guarantor is to be involved in borrowing, a foreign loan is generally recommended. However, this foreign credit does not always work for young people. Foreign lenders prefer to see older borrowers and therefore often reject especially young borrowers. We therefore recommend that you select the foreign loan only to a limited extent and always try the guarantor variant first before considering a foreign loan.