The development phase into independent life is sometimes bumpy, exciting and sometimes this time is littered with financial bottlenecks. Young people want to afford everything, be it a driver’s license, the first car, a trip, or furnishings.
Since the salary is still very small, especially at a young age, household budgets often become lean, because not all wishes are inexpensive. But important bills and the driver’s license have to be paid for by money. So a cheap loan can be taken out for young people.
What conditions have to be met?
Anyone who thinks that they can now go to the bank and apply for a loan without further ado will be disappointed. Cheap loans for young people are only granted with certain conditions. If these cannot be met, then no loan will be given. Banks always ask for a security so that a loan application can be approved. First and foremost, an employment contract and a fixed income are required. Anyone who is still in training and is also a minor will only receive a loan if the parents agree to the contract.
If they fail to do so, the applicant will be excluded from a loan. However, if an employment contract exists, the first security has already been provided. The Credit Bureau will be checked next. German banks always work with Credit Bureau when it comes to cheap loans for young people. If there are no entries, the credit is almost certain. The applicant should not have any negative entries, such as a default on cell phone bills or other loans.
What are the special features?
Banks know that young people need money if they want to buy more. For this reason, there are already offers that are specifically tailored to this group of people. The interest is not much higher than with other loans and the terms can still be flexibly agreed. Depending on the creditworthiness, a loan is granted that can fulfill the wishes and dreams. It should be considered in advance what the money is needed for and how expensive it will be. Only then can an exact loan amount be determined and then an installment agreement can be made. These should not be too high, because there should still be enough money to live on.