Anyone applying for a loan in this country must be of legal age, i.e. 18 years old. From this point on, a consumer is only legally competent. However, the age of majority alone is not enough to predestine yourself for a loan. A loan for 18 year olds depends on the applicant’s income and Credit Bureau. However, the Credit Bureau is only relevant if the loan is applied for in Germany. Foreign banks do not know this institution.
However, the age of majority does not say anything about the creditworthiness of the customer. That depends on whether he is still in training, studying or whether he is fully in the job. If the 18 year old can prove a profession with a sufficiently high income, he will receive a loan for 18 year olds. The amount of income must be above the seizure allowance.
Yes, its possible to take out loan
18-year-old loan seekers can apply for a loan not only in Germany, but also in neighboring countries. It is also possible to take out a loan for 18 year olds with a credit broker. Especially young people who do not yet have a proper overview of the financial world would be well advised with the help of a credit broker. However, only if it works properly. Often, however, the parents or grandparents also provide advice. That would be better in any case, because a credit broker doesn’t work for free, of course.
Most of the time, the first point of contact is the house bank where the parents have already taken out their loans. However, he then has no comparison options and has to rely on the offer of the house bank. Young people are well acquainted with the Internet and could easily look for a loan for 18 year olds from the direct banks. While older borrowers are still shy, looking for credit online is a matter of course for young people.
A credit comparison should be made. The Internet is also available here and offers loan comparisons free of charge. This enables the young person to check the conditions of the banks and ultimately differ for one provider. This should be done with care, although black sheep can frolic among the providers. Especially young people who have no experience in these things could fall for it.
If possible, the terms and conditions of the banks should be checked with an experienced customer. The invoice from the loan calculator then shows how long the term and the possible installments are. The 18-year-old enters the loan amount, the term and the installment amount and immediately receives a loan offer. He should know that a loan offer should always be free of charge. If advance payment is required, the customer should stay away from it. Also insurance contracts that some offer are not to be signed. In very few cases, a customer needs the contracts.
Dispo as a trap for young people
The most common form of credit is the installment loan. The advantage is that the money can be used freely and that the bank does not impose any conditions. The installment loan is paid out in one sum and can be used directly. The loan is repaid in agreed constant installments. The installments are deducted from the checking account either at the end of the month or in the middle of the month. That depends on the receipt of the money. Banks often offer customers a break in payment. The repayment of the loan only begins after one month or after two months.
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If an 18-year-old has his own account on which his salary is received, the bank often offers the so-called overdraft facility – known as overdraft facility. The amount of this loan depends on the amount of income credited to the account. This 18 year old loan should only be used in emergencies. Especially for a young person who has no overview of their finances at all, this is a dangerous credit to call.
This brought adults into a debt trap because they did not use the overdraft facility for which it was intended, namely for a short-term claim. The 18-year-old should be made aware that borrowed money must also be paid back, at the latest after one or two months. It would be fatal if an 18-year-old had to make a debt rescheduling, because he has overdrawn his account and keeps slipping into the red.
The car loan for 18 year olds
Many young people want a loan for 18 years old for their first car. Not everyone has saved something and not all parents have the means to contribute something. If there are any or if savings have been made, these funds could count as a down payment and the loan would not be as high. The 18 year old should know that a loan must also be paid back.
The loan for 18 year olds as a car loan can be applied for at any bank, provided the necessary conditions can be met. A dealer also offers a loan for 18 year olds. Both credit options should be calculated carefully and only then should the decision be made as to who can take out the loan for 18 year olds.
The loan from abroad
The loan for 18 year olds can also come from abroad. Nowadays young people already have negative entries in their Credit Bureau. Since the cell phone bill was not paid because forgotten and reminded and the entry is already there. Many banks are then very reluctant to take out a loan. In general, there is nothing to be said against a loan from abroad. Applicants with a good credit rating often also seek this route.
The reason is that these loans are not entered in the applicant’s Credit Bureau and therefore do not reduce the credit rating. However, the loan can only be obtained under strict conditions. The 18-year-old must already have an income of at least 1,160 USD net. The income must be above the garnishment exemption limit. The permanent employment is assumed, the employment contract must not be limited in time and contain no trial period and must have existed for at least one year.
The loan from abroad, mainly from Liechtenstein, can be granted with three loan amounts. One time 3,500 USD, 5,000 USD and depending on creditworthiness 7,500 USD. The term for all loans is 42 months, two months are repayment-free. In order to receive this loan, the customer must be of legal age.