It is often difficult for single parents to get a loan. Especially when it comes to financing a new washing machine, furniture or a new car, the necessary money for the purchase is missing. The money that is available is often not very high, so many banks refuse to lend to single parents. In the best case, maintenance allowance for the children and child benefit will still come together, but this is not part of the attachable income. In order to get a single parent loan, banks often require conditions that must be met in advance.
Collateral for a single parent loan
When making a loan request, it is important to think about collateral beforehand. Without this, it will be almost impossible to get a loan. One possibility would be to provide a surety. It does not matter whether it is a family member or a friend. It is only important that the guarantor has a fixed income. If furnishing furniture is to be purchased, the life partner is also suitable as a guarantor, who also uses the furniture.
The guarantor must bear in mind that the guarantee remains in place even if the relationship breaks apart. The guarantee continues until a new guarantor with the same conditions takes over the guarantee. Another security can be the net income, which must be very high. The bank prepares a household bill. All expenses and income are offset against each other. If there is still money left over at the end of the invoice, the loan application is often approved.
Are there alternatives to the house bank?
If you don’t necessarily want to take out a loan from your house bank, you can also apply to a direct bank on the Internet. There are numerous intermediary banks where a single parent loan is granted. The only thing that is important to the direct bank is the solvency, which must exist in the long term. Interest can be influenced by the borrower as the willingness to grant a loan is much greater here.
Anyone who cannot provide a surety can take out residual debt insurance. This is concluded so that the installments are paid in the event of insolvency, only by the insurance company and not by the borrower. Anyone who pays back their loan more quickly will also receive an interest credit so that money can be saved. First and foremost, all offers that the different providers offer should be obtained.
This is the only way to filter out the best conditions and save a lot of money in the end. Without a settlement, nobody should sign a loan agreement these days. As many different banks as there are, the offers for a single parent loan are just as different. Not every offer that looks cheap is too. There are often hidden costs that should definitely be considered. Those who are well informed and can be sure that they can pay the loan back can apply at any time.