Credit despite Social Welfare – is that possible?

A loan despite Social Welfare is not so easy to get. The main reason is the Social Welfare benefit. This is not a work-like income, but a social transfer benefit. This social transfer benefit is linked to the need. In contrast to the pension, which is ultimately income without work, it is not a loanable amount. A creditor therefore has little chance of getting his money back if the debtor does not pay.

A loan despite Social Welfare from private sources.

A loan despite Social Welfare from private sources.

The credit despite Social Welfare can only come from sources other than the normal house bank because Social Welfare does not represent a reliable income per se. Unless a solvent guarantor advocates it. Then it could be, especially with long-standing customer relationships, that the house bank still sees opportunities. As a rule, however, this is rather difficult due to the clear requirements of the banks for lending.

A possible alternative to get a loan despite Social Welfare would be the private loan. On the one hand, friends or acquaintances come into question or the private credit market. In this sector of the banking industry, investors are much more willing to take risks. This willingness to take risks, however, can usually be paid very well. The cost of a free market personal loan is often quite expensive under difficult circumstances. They are often hidden in fees. Taking out extra credit insurance can also be expensive.

In principle, people who rely on the support of Social Welfare should generally try to avoid loans. In most cases, state support for life is really only sufficient to secure the basis of life. Free funds, for example to repay a loan, are hardly available in this narrow budget. The likelihood of having repayment difficulties later is high.

With a loan out of Social Welfare

With a loan out of Social Welfare

There is a way for young people that leads from Social Welfare, but includes the taking out of a loan. It is the student German State Funding. The instrument was created in order not to make the possibility of studying dependent on the income of the parents. For example, if you had to wait for a place to study, taking advantage of Social Welfare, this loan is a real future prospect despite Social Welfare. German State Funding is granted on application.

It secures the basis for the study. It will only be repayable far into the future if a job is taken up after graduation. With the start of a course of study, the right to Social Welfare support also expires. Students can use their own resources to improve their situation and build a future without social transfer benefits.

Loan to Social Welfare while working.

Loan to Social Welfare while working.

If you are working, but the income is so low that you receive Social Welfare as a support, a loan can be decisive for maintaining mobility. In this case, it is advisable to consult with the supervisor whether there is a supportive measure from the state. The state is interested in Social Welfare recipients keeping a job, even with low pay.

In principle, a loan is a possible thing in this life situation, but it is not easy to obtain. The general consideration should also be well thought out. Otherwise, despite Social Welfare, the loan could become a debt trap.

Credit mediation without credit check

 

The loan without credit check is becoming increasingly popular. But this should not be a miracle, because more and more people are in debt and carry their negative credit check entries on their backs. Negative marks in the credit agency can complicate life many times over. Mobile phone contracts, internet contracts, landline connections, not even bill or installment purchases via mail order are possible. All companies check their creditworthiness with credit check before concluding a contract with a customer.Only a small negative entry can result in a certain contract or the like not being awarded. Negative credit check entries in lending are viewed even more critically. But there are also ways to get a loan without credit check, but there should be two different variants.

Credit mediation without credit check for all those who do not want to jeopardize their creditworthiness

Credit mediation without credit check for all those who do not want to jeopardize their creditworthiness

Normally, borrowings are recorded in the credit check, regardless of whether the repayment is made on time or not. As soon as borrowing has taken place, an entry is made in the credit agency. If the loan has been properly repaid, this is also noted as a positive entry. On the other hand, if there was no ordinary repayment, a negative note will be made.

However, many people want to bypass the first entry of lending and are therefore looking for a loan agency without credit check, because each entry, regardless of whether positive, negative or just for information, reduces a person’s creditworthiness. Further borrowing is usually not possible if the borrowing has already taken place, at least not as long as the first loan has not been paid off. However, anyone who plans to take out another loan in the near future, perhaps only to reschedule due to possible interest savings, is well advised to arrange a loan without credit check registration. In this way, later business partners will not find out about the loan taken out and still to be paid off.

Credit mediation without credit check for all those who already show negative entries

Credit mediation without credit check for all those who already show negative entries

In addition to the people who do not want to have their borrowing entered in the credit check, there are also those who already have negative entries and run the risk of a loan refusal. For such groups of people, it is again advisable to arrange credit without a credit check examination. Normally, every loan application involves a credit check examination. Negative entries indicate a lack of creditworthiness and mostly lead to rejections. A credit agency without a credit check exam, on the other hand, can also procure cash for people with high debts.

However, the brokerage is less about banks than about foreign banks that cannot see the credit reporting agency. In this way, the lenders are not aware of negative entries and can agree to a loan brokerage without credit check. However, such loans are linked to a number of requirements. In particular, the monthly income, which of course must be regular, is particularly important. This must be sufficient to cover your own livelihood, running costs and the monthly repayment rate. Furthermore, it can happen that an intermediary requests the conclusion of a so-called residual debt insurance, which is nothing more than life insurance. This should also be considered by borrowers. However, it is important not to take out more than one insurance policy.