It is not easy to get a loan in marginal employment because of the lack of secure income to repay the loan. Banks rarely grant low earners low-income loans because the risk of default is too high. It is not easy for mini-jobbers to get a loan, as there is less income here too. However, applicants shouldn’t give up too quickly because there are ways to get a low-income loan.
Apply for a loan – with collateral possible
A loan for low earners is difficult to obtain, but can still be applied for with success. Proof of income is always used to prove that sufficient security is available. If this proof is too low, this security must be replaced with other security. Collateral in the form of a guarantee, a property or a life insurance policy can always be provided.
Banks accept this collateral and it is often enough that only one of the above is available. The chances of getting a loan for low earners without collateral are zero. However, if collateral is submitted, a small loan can often be applied for. This is often not more than 5,000 USD and has to be paid back in a short time. Banks often also offer overdraft facilities for short-term purchases. However, since this comes with very expensive interest, this step should be carefully considered.
In order to still get a loan for low earners, other alternatives can be chosen. One possibility is to ask family or friends whether someone would lend a certain amount of money. This has the advantage that no interest is incurred and no credit is entered in the Credit Bureau. Nevertheless, a credit contract should also be drawn up with this alternative so that both sides are secured. The repayment period and an installment payment can also be agreed, so that the lender can be sure that the borrowed money will be paid back. Another option would be to take out a loan from a mail order company.
If furniture is purchased, payment in installments is often offered here without proof of income being required. But even with such a purchase, care must be taken to ensure that the installments are paid on time, because in the worst case, a payment order may otherwise be issued. When all else fails, the pawnshop can be visited. Valuable objects can be moved here, which will be triggered again later. In this way, cash can be acquired without having to take out a loan for low-income earners.