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The Housewife Credit2

 

 

At least then was failed, if the spouse has not given his consent. Instead of self-earned money, the housewife, who was reduced to work in the household, was entitled to a “fair amount” of household allowance. For this “pocket money” of course, the man came up, because he was the breadwinner. And what did the housewife do if this budget money was not enough? Then she could get a small loan named after her at the bank. Provided the husband gave the bank his consent and a guarantee in the form of a guarantee.

The Housewife Credit – a relic from the past

The Housewife Credit is thus closely linked to a family portrait that one no longer sees or only rarely sees today. Spouses have long been earning their own money on equal terms. Although women still earn less and often find it difficult to find a full-time job again, especially after a break from work. The housewife loan is still there in its form, but it means differently. This has of course also expanded the target group. And so today’s home-based credit is not just for the lower-earning spouse, regardless of gender, but potentially for low-wage earners of all stripes.

The Housewife Credit at that time the housewife loan today

The Housewife Credit - a relic from the past

In the past, the Housewife Loan was actually designed exclusively for housewives. Nowadays, under certain conditions, apprentices, single parents, jobseekers, pensioners or students can apply for a so-called homemaker credit.

This is basically the only feature of housewife credit that has been subject to change over time. Because the formalities and conditions have not become less. Rather, the requirements to be granted a housewife credit have become more restrictive. Because if you give a loan to a person without a steady or low income , you are taking a relatively big risk. To minimize this risk, financial institutions have various options.

The guarantee of the earning partner, a solvent friend or relative is still obligatory in a housewife loan. Especially if the applicant receives social benefits or falls below a certain minimum income. Trainees are an exception here because the existing training contract is accepted by some banks as collateral. Pensioners, mini-jobbers or the unemployed, however, need a guarantor with a proven income from a reputable bank.

Other requirements for the approval of a housewife credit are a German residence and the age of majority.

How useful is a housewife loan really?

 How useful is a housewife loan really? Although housewife loans are still awarded, they are as a product actually unattractive for the targeted audience. On the one hand, this is due to the required guarantee . On the other hand, it is due to the other risk minimization measures taken by credit institutions. These include, for example, the effective annual interest on a housewife loan . This is usually higher than other installment loans. In addition, the low monthly installments to serve the housewife loan result in a longer term. Depending on the amount of credit approved, a home-based loan will become unnecessarily expensive and tedious. A mini or micro loan , possibly also as an instant option, can be a more efficient and effective alternative.

 

Tips for a Cheap Loan

Anyone who earns a loan wants to earn it – that’s the simple rule in the credit system. The merit of a loan depends on the amount of the premium as part of the repayment, generally known as interest. So, from this it can be concluded that the lower the interest rate, the cheaper the loan will be. By law, interest rates are limited, which already significantly limits the earnings framework of a bank. But even within these legal regulations, borrowers have certain options to influence the determination of the individual interest rate on their own credit.

Interest on loans: Economic aspects and financial situation crucial

Interest on loans: Economic aspects and financial situation crucial

Basically, when it comes to a loan, the bank wants to make money by lending it, and this is the main reason for setting an interest rate. However, the interest rate also serves, to some extent, the need for credit security at the bank. And just under this aspect, an interest rate can be influenced indirectly for your own benefit. In particular, one’s own economic aspects as well as one’s own financial situation are of importance with which one can influence the so-called risk premium in the interest rate in his favor. Below are 5 tips for a cheap loan summarized for you:

1.) Good credit is a prerequisite

1.) Good credit is a prerequisite

One of the main criteria in determining the interest rate on a loan is the so-called credit rating. The important thing is to recognize that there is the credit-based interest rate on loans. That is, the worse the credit rating, the higher the risk of default, the higher the interest rate, which in this case acts as a type of loan loss insurance. In other words, the better your own credit rating, the more likely it is to get a very favorable interest rate on your own loan.

It is therefore important to always keep an eye on one’s own credit rating. The most important element for this is the requirement of the own Schufa information, which can be requested once a year for free at the SCHUFA (protection association for general credit protection). This self-report gives you an overview of your credit score and the entries made at SCHUFA. If incorrect information is stored, you should have it deleted if possible.

In addition, especially in the project of borrowing the following rule applies: Inquiries at various banks for a loan should always “Schufa-neutral” (conditions query) done, otherwise entries are made in the own SCHUFA and thus adversely affect the credit score, without it ever came to the conclusion of a loan.

2.) Choose the right repayment term

2.) Choose the right repayment term

Credit debt should be paid as soon as possible and not burden your household budget for a long time. However, it is also true that excessive loan installments due to short-term maturities are also dangerous. So before you take out a loan, your own budget planning should be created as a basis. So the question is

“How much credit can I actually afford over what time period?”

So first, all expenses should be compared to revenues. The difference represents the maximum possible loan installment per month. However, here too, a safety buffer must be included in order to remain financially flexible in the event of unforeseen and, above all, unplanned events that require financial flexibility. The amount and duration of the desired loan should be chosen in a realistic relation to the monthly available budget as well as a financial planning certainty over a period x.

Helpful and recommendable is the use of a loan calculator, which allows you to get an impression of how high the monthly installments for the desired loan can be. In the credit comparison, also vary the loan amount and the term. This gives you an accurate picture of which loan is best for you.

3.) Is the loan earmarked or not?

3.) Is the loan earmarked or not?

Classic installment loans are often granted without need for indication of purpose of use. However, the resulting freedom to use the loan is often provided with an interest premium. However, anyone who is aware of what is to be used for the desired loan, may well from this capital in the form of a discounted interest rate beat. The classic example here is the car loan. With such a loan, the risk of default is NOT offset by an interest charge, but by the car being considered as collateral for the bank. If, as a borrower, you are unable to pay the loan installments, the bank has the right to sell the car and use the purchase amount to repay the loan. For banks, the risk here is therefore not quite so high, which is why they often offer cheaper lending rates for loans with purpose.

4.) loaded Schufa? Then specify guarantor

 

As already mentioned at the beginning, the creditworthiness of the borrower plays a not insignificant role in the granting of loans or the determination of credit conditions. If your own credit rating is charged, these loan conditions automatically worsen. However, one can counteract by offering the bank a solvent loan guarantee when borrowing. Because for the Bak, a guarantor provides increased protection against a loan default. A security that rewards the bank on the one hand with a higher chance of obtaining a loan, but also with an often, significant improvement in credit conditions.

5.) necessarily compare offers for a loan

5.) necessarily compare offers for a loan

Last but not least. Differences in numerous loan offers are commonplace. Which means that a credit that looks cheap at first glance may not really be the cheapest. Especially the internet offers numerous possibilities for a credit comparison – also schufa neutral. With a few details in a loan calculator you get numerous loan offers from different banks at a glance. In this way, they can use the results from a loan calculator to gain a first comprehensive overview and, based on the credit comparison, make an initial decision on the extent to which their loan project can be realized on which terms.

 

 

The Loan Credit is Increasing Every Single Day

No money in the bag and still vigorously indulge in consumption. A situation that according to recent polls and statistics applies to German citizens. So there are fewer and fewer Germans, which according to statistics can be described as really debt-free. So has borrowing finally arrived in society? It seems so, because life on the pump has taken on a dynamic that one can well and like to conclude that the existence of one or even more loans per household quite a certain matter of course.

Figures show growth in loans for households

Figures show growth in loans for households

If one looks at the results of surveys, one thing stands out very clearly: The amount of credit drawn per citizen has been rising steadily for years, as the following list shows:

  • 2015 € 9,552.00
  • 2016 at 10.225,00 €
  • 2017 at 10.272,00 €.

And even for 2018, a renewed increase is expected. Promoted solely by the fact that interest rates on installment loans have been lower than ever before and that the market has also been “fueled” by numerous negative credit campaigns.

Older people are more heavily indebted than younger citizens

Another striking feature when looking at a large number of statistics is the fact that older people, especially the age group of 50-54 years, have the highest level of indebtedness due to current loans . The burden of loans within this age group averaged € 11,784.00 in 2017.

In comparison, the age group of 18 to 21-year-old debt is virtually negligible, because here was the financial burden of loans in 2017 just € 4.334. And certainly one reason for this is that banks are less willing to grant large amounts of credit, especially among younger applicants.

Are the Germans debt kings through loans?

 Are the Germans debt kings through loans?

Are the German citizens debt kings? Do you fall too fast the temptations of the numerous cheap loan offers in the market? Are they even irresponsible in dealing with installment loans, Dispo and Co.? Not at all, because, apart from regional deviations, German borrowers are fully aware of their financial responsibility, which results from their loans. After all, an impressive 97% of all German borrowers know exactly how much they owe their bank. This places German borrowers at the top of the list in European comparison. What remains to be concluded: As long as you realize that the inclusion of a loan is also associated with the obligation of a reliable eradication, at least from this point, everything is fine.