What is more important income or credit
Borrow money with no income
Loans without proof of income
- Whether you can get a loan and how expensive it is depends on how you are financially.
- If you don't have a steady income, the banks will doubt that you can pay the money back.
- First try to get a "normal" loan. First compare the loan offers via Verivox. Then you do a second comparison with Check24.
- You can create financial freedom with other offers such as overdraft facilities, credit lines and credit cards. But be sure to keep an eye on how badly you are and how you can repay your debts.
- As a student, you can get support through student loans, KfW student loans or other special financing offers.
When you apply for a loan, the banks ask for all kinds of information and documents. They are interested in how much your rent is, or whether you live with other people. Proof of income is also one of the documents to be submitted.
Is there a loan without proof of income?
When you apply for a loan, the banks try to assess your financial situation correctly. An important component is the amount of your income and whether it is regular. Based on this and other information, they then decide whether to give you a loan and, if so, at what interest rate.
Therefore, the banks usually require proof of income. This can be done in different ways, for example via your pay slips, your pension notices or an income-surplus-account.
Without a steady income, most banks will not give you a loan - no matter how they apply for their loans. The reason for this is simple: if the bank cannot assess that you have enough money to repay the loan in the agreed time, they are taking a risk and may lose money. When in doubt, she tends to say “no” to the loan.
The situation is different if you earn little money or it ends up in your account irregularly. In such cases, you may get a loan, but it will be very expensive. The banks let themselves pay the higher risk of a loan default through higher interest rates. So even if you don't earn much money, you can try first to get a normal installment loan. It is best to compare the offers of several banks, which you can do via loan portals.
Finanztip recommends that you start with Verivox - the portal clearly shows you all possible loan offers. Then repeat the whole thing at Check24. Dat Portal may have involved other banks that can make you a better deal. However, you may only get to see this after several clicks. You can find more information about loans and tips on comparing loans in our guide to loans.
In addition to installment loans, you can borrow money from the bank in other ways. However, banks will be cautious if your income is low or you cannot provide proof of income. You may only get a small overdraft facility - if at all. With a credit line, creditworthiness also plays a role.
If the banks grant you an overdraft facility or credit line, use these offers as disciplined as possible. You can also go into debt with low credit lines, for example if your bank terminates your overdraft facility. In addition, both offers are usually more expensive than an installment loan.
You may have more chances with a credit card. With "real" credit cards, the transaction is debited from the bank once a month. So you get a free loan for this period.
With some of these cards, you can even pay off your debts in installments over months. However, these rates bear high interest. Do not underestimate the risk of going into debt with these installments. Finanztip advises against paying in installments and recommends that you only use the free credit for one month and pay off the card debt in full on time before the debit date.
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What other options are there to borrow money?
There are other ways to get money, depending on your situation.
Personal loan - You can borrow money from friends and family. The Schufa is left out and you may not even have to pay interest on the money. But remember to draw up a loan agreement. In this you can regulate, for example, when you will repay the money. Better be honest when it comes to your salary too. After all, your loved ones should be able to assess whether they will get their money back and whether they can and want to take the risk of losing it.
Self-employed - As a self-employed person, you can apply for a loan from a bank. Instead of the documents on the salary, bank statements or, for example, the income-surplus-statement serve as proof of income.
Whether or not you can get a loan depends on how well your business has been over the past few months. The banks tend to be a little more cautious with the self-employed and sometimes charge you higher interest rates than they would with a borrower with a permanent position. The industry in which you work and how susceptible it is to economic crises or how strong the competition within the industry is can also have an impact on interest rates. Since your income is irregular, the risk of not being able to repay the loan increases.
Housewives - If you are at home and only your partner works - whether man or woman - you can take out a loan. You can do that together with your partner. It is important to note that your partner is jointly liable with you for the borrowed money. Should you split up or your partner dies, you may still have to take responsibility for the loan, regardless of whether you make money yourself or not.
Students - As a student, you have various options for making money. An installment loan is therefore not the best solution, even if you are making money on the side. With student loans, one KfW-Credit for studies or other financing offers for students, you drive better.
Pensioner - Like the self-employed, pensioners can also apply for a loan; your pension notification is used as proof of income. Whether you get a loan depends not only on the amount of your pension or other income, but also on your age. Because this increases the risk for the banks that you will become seriously ill or die and that they will therefore not get their money back.
Unemployed - If you are unemployed, the banks will also decline. If you are deeply in debt and want to breathe with a loan, you should better go to debt counseling in this situation. This will prevent you from slipping even deeper into debt and ultimately not getting around personal bankruptcy.
What alternatives are being advertised?
Small loans - Providers like Vexcash, Cashper and Xpresscredit advertise with short-term financial injections between 100 and 1,500 euros, which you have to repay within a maximum of two months. The interest rates for such loans are higher than for installment loans and they are even higher if you need the money quickly or want to pay it back in several installments. These providers also require that you either have a regular salary in your account or that you are creditworthy.
Credit without - Sigma Kreditbank is usually behind the "Loan without Schufa" advertised on many websites. This bank is based in Liechtenstein and therefore does not work with the Schufa. But this company also asks about your employer and salary.
Personal loans via portals - The personal loan does not always have to come from the circle of family or friends. Portals such as Auxmoney or Giromatch also arrange loans for private from private individuals. The money comes from private individuals, but behind the settlement there is again a bank. The interest rates are usually quite high for such offers, and there are additional fees such as agency commissions. The providers do not necessarily require a classic, regular income, but you will not get a loan without any receipt of money.
Josefine Lietzau is an editor in the Bank & Investments team. During her studies in German and English, she worked for the editorial offices of the Green League, the Jüdische Zeitung and the Superillu. After completing her master's degree, Josefine Lietzau completed an internship at the online consumer portals Banktip and Posttip, where she then worked as an editor.
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