Credit for young people – what do you need to consider

Young people who start an apprenticeship start an independent life. You get money for the first time and just want to get started. But getting started can be over quickly, because now the trainees recognize how expensive life really is.

Those who still live at home have many advantages. There is no rent to pay and the cost of the groceries is also not very high. The situation is different for those who want to move into their own apartment. The rent, the electricity and the telephone bill have to be paid alone. Big leaps cannot be made, like getting a driver’s license or buying the first car. Many then want to take out a loan for young people.

What needs to be considered when it comes to young people’s loans?

What needs to be considered when it comes to young people

Many banks offer a loan for young people, but this is always subject to conditions. If the applicant is not of legal age, he always needs the signature of the parents to borrow. If they refuse to sign the contract, no bank will grant a loan. If you agree, the trainee must submit various documents. This primarily includes the training contract.

If the trainee is still working during the trial period, it will be difficult because the employment relationship can be ended at any time. A loan can always be granted after the trial period. In addition, the Credit Bureau is checked. All cell phone contracts and lending are in there, so that this decides on the creditworthiness. If there are too many entries, the creditworthiness is downgraded and rejection can occur. If the Credit Bureau is clean, the bank usually grants a loan.

Conditions of the bank

Conditions of the bank

In the case of a loan for young people, contracts are awarded whose duration is not longer than the training period. So the loan must be repaid during this time. If the trainee already has an employment contract that guarantees that he will be taken on after the training, the duration can be extended. The contracts are small loans. These have a maximum loan amount of EUR 2,000 so that the borrower does not become heavily in debt at a young age.

The monthly installments are always based on the training salary so that the installments can also be repaid. If the loan application is accepted, the loan amount is transferred to the existing checking account. This process usually takes up to a week. The driver’s license, rent or other bills can then be paid with the loan.

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