Loans for single parents are not only popular, they can also be approved. We have summarized for you who lends to single parents, which requirements must be met.
Loans for single parents – different starting positions
Raising a child alone is difficult for everyone, it is not a question of social background or education. The children are always in conflict with career opportunities. Anyone who decides to take this difficult path without a partner often has to overcome financial bottlenecks. A single parent loan, it doesn’t even have to be large, can make the balancing act between family and work easier. Not every single parent has a problem getting funding. The same rules always apply to the approval of a loan.
The garnishment exemption limit must be exceeded by the net income. Attachable amounts above this limit can ensure payment in installments for a loan. It is therefore often a question of training how this life situation can be mastered. With an academic education, for example as a teacher, flexible time management and a good income can be reconciled. With tax bracket 4 and 2 children, a teacher (high school) earns around 3,000 USD net in the middle years. The garnishment exemption limit is already exceeded with a net income of 1,650.
If the income is now also in the normal relationship to the expenditure, there is nothing in the way of a loan. The credit comparison calculator currently offers small loans of up to 3,000 USD for 2.78 percent APR. Financing a good used car, for example for 10,000 USD at 4.89 percent APR, is also not a problem. The examples mentioned came from Cream Bank (small loan) and from Infra Bank, as of November 2013.
Single parent difficult income situation – loan offers
A loan for single parents is of course also sought when the income situation is more difficult. The wish is human understandable, because children are not just a joy. A good nursery is always expensive. Of course, all parents, whether single parents or as a couple, want to offer their children a carefree childhood. It’s not always easy with a normal income. Especially big wishes, like a new children’s room, often have to be in the back.
With an income from work close to the limit of untangeability, no ordinary bank will grant a loan. The regulations for commercial lending do not allow this, with all understanding for the loan request. With good Credit Bureau, the possibilities to use a loan to promote sales and private lenders remain. Promotional loans are offered by department stores and mail order companies. It is not uncommon for credit checks to take place at the lowest level. Even lending to trainees can be possible.
The alternative, credit from private donors, can provide a single parent loan that is not restricted. Market leaders for private to private loan brokerage are the Spin Lender portals and Across Lender. However, mixed forms between the usual credit bank and personal loan portal can also open up credit opportunities. An example of this would be Cream Bank.
Loan for single parents – private lending
It is not only the loan request for single parents that is becoming increasingly difficult to implement in Germany. The overall development of household income is causing problems with lending. More and more people are poor. Low wages, the loss of many jobs for the unskilled and reform policies have created this situation. Bank credit is less and less accessible to people.
Not only those interested in credit are currently suffering from supply shortages. Even savers can hardly find any safe forms of investment that at least enable inflation to be offset. Money in the savings book often generates as much interest as under “Grandma’s pillow”. It’s only safer under the pillow than on the bench. As a loan for single parents, it helps people through an emergency and ensures fair interest income.
The portals for private lending create a win-win situation for both sides. Credit requests that a bank does not want to fulfill, or only wants to meet at horror rates, can be realized again at low interest rates. A saver can decide how to invest his money. Even the stupidest investor cannot act worse than the stock market gamblers in the past. Fair play for both sides helps those interested in the credit out of the credit crunch, an investor with a fair interest income.
A single parent loan from private donors is the best alternative in many cases.