Credit for Trainees

Apprentices are in a job situation that, on the one hand, gives them a regular income, on the other hand, that income is not available at a level that could secure a larger loan. But if a loan for trainees just needed, the selection in the market is not of special size. When banks let themselves be talked about and which alternatives are in question, will be explained below.

The loan for apprentices at the bank

The loan for apprentices at the bank

As a trainee you have a regular income that is at least attachable, even if it has only a relatively low level. However, in most cases this is not enough to secure a higher installment loan. Banks check exactly how it is in terms of income and expenses of the trainee and whether the existing income permanently a debt service, the regular payment of interest and repayment can be made. The apprentice should not expect too much credit for trainees unless he receives support from third parties.

Third parties can help the trainee in two ways, namely as guarantor or co-applicant. Both have to ensure that the loan is repaid on time and in accordance with contractual arrangements. However, both are also expected to meet exactly the requirements for collateral, which is expected by the banks and can not be provided by the applicant or only insufficiently provided.

This includes above all the regular income in sufficient amount. In addition, this income should be generated from non-self-employment and should therefore be covered by a current payroll, so that one is accepted as a guarantor or co-applicant. The difference between the two lies in the time from which liability is assumed.

For a co-applicant, this is the case immediately, so to speak, after the contract has been signed. The guarantor, on the other hand, first has to worry about making payments if the claimant can not or does not want to pay for it himself. Thereafter, however, it may happen that the guarantor has to repay the entire loan if the financial situation of the trainee does not improve, for example if he is not taken over by the company after completing his training.

Expensive credit

Expensive credit

If only smaller amounts are needed or if a liquidity shortage is to be overcome, an out-of-date loan would be considered as a loan for trainees. With the disposition credit is a very flexible, but also at the same time relatively expensive credit, which is offered at almost every bank. This allows account management in the target, which is colloquially referred to as overdrawing the account. However, this is not correct, because a current account is considered as overdrawn only when sums over the agreed credit line were taken up. This line is usually two to three times the regular monthly income to ensure a timely repayment at all times.

The disadvantage of a credit line is the interest rates charged on a claim. As flexible as the loan was used, it should also be repaid, as interest rates are sometimes more than 10% effective. If the account is overdrawn, again add a few percentage points, which also makes the loan for trainees very expensive. Simply apply for the application, because this is usually only an informal arrangement with the bank necessary. This already has all the necessary data regarding the incoming payments, which is why the Dispo is available within a very short time as a loan for trainees.

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