If you, as a consumer, want to apply for a loan of a certain amount from a bank, you must be able to demonstrate the appropriate level of creditworthiness. The creditworthiness of each applicant is checked by the bank prior to the granting of a loan. Individuals must demonstrate their creditworthiness to the bank through regular income received from their employer.
But as if this revelation were not enough, each private applicant will be checked by the bank for a negative credit entry. The decisive criterion for the financial institutions is the existence of a fixed income. As a result, the bank has some security to get back the money lent in the form of monthly installment payments. So if an applicant does not have a fixed income, it seems completely impossible to get a loan. It is not so!
Collateral for a loan without a fixed income
In principle, a loan without a fixed income can be applied for and assigned to the applicant by the respective bank. No fixed income does not mean that you have no income. It can be variable, for example, as for self-employed. Additional collateral when applying for a loan without a fixed income may be crucial to obtaining the loan.
Frequently, applicants who are unemployed at the time of filing the application consider that third persons in the role of guarantor are considered to be adequate security. If you have a life insurance, you can throw them for a loan without a fixed income in the balance. The advantage of a life insurance in connection with applying for a loan is that the life insurance can be borrowed. The applicant does not make any further debts through the loan, but only lends his own money. The credit rating no longer plays a role in this constellation.
Another way to obtain your desired loan without a fixed income is to use a so-called “Swiss loan”. The loan amount is financed by a bank based in Switzerland. Swiss banks do not conduct credit checks and do not ask for a possible credit entry.
What should one pay attention to when applying?
The application for a loan without a fixed income should be well considered. If after some time you have found a financial institution, which could come into question for the loan, you should study the offered terms of the loan closely. The interest rate offered is usually higher than that given to loans that have a regulated and stable income. In addition, the amount of the loan is often very limited.
Taking out a loan should always provide the borrower with added value. Therefore, it is of utmost importance that so many offers for a non-fixed income loan be tested in advance for their profitability. Not infrequently dubious offerers move in this branch of the credit system, which exploit and lure the financial emergency of the borrower with seemingly favorable credit conditions. Ultimately, these offers are much more expensive than the offers from reputable providers.