Credit without income/salary

To secure a loan you usually need a proof of income, ideally a salary statement. Those who can not present such, but do not despair: There are also opportunities for people without a fixed income on a much-needed credit. Here, the loan without income or the credit without salary would be a possibility.

Come to the credit with collateral

Come to the credit with collateral

A serious financing can be recognized by the fact that collateral is required. This can be a solvent guarantor or a car or condominium or other property. In any case, the borrower must be of legal age, be a German citizen or foreigner with valid identity documents, have a German bank account and at least have a small, possibly even irregular income.

The loan offer will be calculated so that the borrower can pay his installments without being driven deeper into the debt trap.

Plan for higher costs

Plan for higher costs

Therefore, mostly only small loans are granted, for example, from 500 euros. Compared to fixed-income financing, the processing fees and the interest rate are usually higher. There are fairly large interest margins depending on the credit rating. These in turn affect the amount of the monthly installment and the term. It may also require the completion of expensive insurance, especially if the loan is offered without insight into credit bureau. Here you should look at the fine print very carefully, because there are also dubious providers.

It is best if the loan is requested together with a co-applicant who has a good credit rating. Since the lender in this case has particularly great opportunities to get his money back, he will offer better terms.

Small loan without income with guarantors

Small loan without income with guarantors

Also, a guarantor gives the lender security, so that he can grant credit without proof of income and grant good conditions. However, the legal situation is different: while a co-applicant can be prosecuted at any time during the term for the installments, this is only possible with a guarantor if the borrower does not fulfill his payment obligations permanently.

The guarantee is entered in the guerrilla’s credit bureau file, so that he may get in trouble if he wants to apply for a loan himself. In addition, a guarantee can burden the personal relationship between the two persons.

It is worth considering whether to ask someone who would be co-applicants or guarantors to apply directly for a private loan. Repayment may then be more flexible and cheaper. In any case, you should be sure that you can return the money so as not to endanger the personal relationship.

Payday Loans as a possible alternative

Personal loans as a possible alternative

Alternatively, you can look around for a Payday Loan on a credit marketplace. In addition to the general credit rating, the credit check also takes into account the project behind the loan request. With successful credit brokerage a commission and relatively high interest rates are to be paid.

If you only need money for a short period, a mortgage loan is an option. Since the pawnbroker can use the pledge, he is not interested in the income situation of the pledgee. The loan is issued promptly and easily and without any query or entry to the credit bureau, but the interest is by law 1 percent per month. There are also high processing fees, so this is a pretty expensive option.

A special form of a small loan with no initial costs is the conclusion of a mobile phone contract or several mobile phone contracts with a fixed term of 24 months. Instead of a mobile phone you get between 250 € and 2500 € as equipment subsidy transferred to his account. You do not need a proof of income but only a German residence.

Conclusion: Depending on your personal situation or project, a small loan without proof of income is possible.

5 tips for small loan without income

5 tips for small loan without income

1. List collateral

If you have no income, but should have appropriate collateral. For example, those who have just become unemployed may still have various items that have a certain material value. These can usually be shown as collateral for a loan.

This can also be a car. The important thing is that it is a seizable property, because without its own income, there is nothing that the bank could fall back to secure the payments. Anyone who has created a home during their working hours or has a condominium can also lend it to them.

2. Find guarantors

A very good way to get a loan without income is when another person is ready to act as a guarantor. This can also be your own partner or wife, provided that she has a regular income and has no negative entries in the credit bureau. As a guarantor, however, any other person can occur.

For strangers or friends, it is advisable to set up a guarantee contract to clarify all eventualities in advance. As a last resort, a guarantee insurance can be concluded, in which then monthly contributions are paid.

Be sure to pay attention to the double burden of monthly loan installments and payments to the insurance company.

3. Create extra income

Just because there is no income does not necessarily mean that you are not creditworthy. Often only a few hundred euros are missing before the payment of a small loan at least is granted. For this purpose, a secondary income can be created, which can also be operated from home. The Internet offers a lot of work that can be done directly and quickly from the PC.

For example, anyone who enjoys writing can turn their talent into a career. Certainly, there will be no income from which one can live, but this amount of money could open the door to a small loan.

4. Mortgage life insurance

Anyone who has taken out a life insurance policy in their professional life has a good chance of getting a loan through them. Often it is not worth canceling the insurance and paying off the amount. However, this can also be pledged to the bank. It practically springs in when one is no longer able to pay off the accruing installments.

If the amount is high enough, sizeable sums can be borrowed. Beware of use: Also with the bank applies that often the total amount is not paid.

5. GAL as income

Unlike GALI, the GAL is based on the last income of the borrower. In this case, a percentage of the previous earnings is paid out as a percentage. If this was particularly high, then quite considerable sums can come to bear here. The most important thing is that GAL is only protected up to the exemption amount, which also applies to a normal income. Thus, the purchase of GAL does not pose a problem in borrowing.

However, additional collateral should also be available here, because if there is no prospect of a new job, even positive entries in the credit bureau and very few banks will lend. But if a property is available or other collateral available, it may look different.

In order to be able to fulfill one or the other wish, one needs of course also the appropriate financial means. But even so, there can be situations in life where you have to get money quickly. For example, unexpected loads such as a broken washing machine or engine damage to the car can become a costly investment. At this point, a credit without income proof helps quickly. Without a grandiloquent credit check, you can quickly make money and continue your life as usual.

It is very advantageous that often no query of credit bureau takes place. Thus, also possible entries do not constitute an obstacle. Furthermore, there are occupational groups and groups of people who are much more difficult to access loans. For example, a loan without proof of income is also a worthwhile alternative for trainees or low-income individuals. But, what is important when considering a loan without proof of income, which prerequisites have to be fulfilled and how are the respective conditions?

This is how you get a loan without proof of income

This is how you get a loan without proof of income

Basically, lending is quite simple. Most lenders follow the same procedure. Often you can find many providers on the Internet, which provide a loan without proof of income. Here, the purpose and the duration are in the first place queried. The more plausible the intended use and the more realistic the running time, the higher the chances of a loan being awarded.

It is important to pay attention to the effective interest rate when selecting the loan. This can lead to significant differences between the individual providers. Experience has shown that the interest rate is slightly higher than is the case for a loan with a credit bureau query.

This is mainly because this interest rate should serve as collateral for the lender. Nevertheless, the effective interest rate should not be excessive. A healthy mediocrity points to a reputable provider.

The credit can now be applied for on the Internet. You enter all the important data and send the application forms. Within only a few working days will be decided on the lending. In most cases, the processing of applications is much faster than with conventional loans, as there is no credit check. If the loan is approved, you will get the money directly transferred to the account.

In addition, to increase the chances of lending, you can also specify certain collateral. So you can, for example, note a guarantor or deposit property as collateral. However, one should very carefully consider what this form of security is worth.

For whom is such a loan suitable?

For whom is such a loan suitable?

As mentioned earlier, basically anyone can benefit from such a loan. Especially people with a low income, such as students or trainees, can benefit from it. Also, a credit without income proof is suitable for those who have already failed in the granting of a loan by a bank, because a proof of income has not been sufficient as sufficient security. Furthermore, self-employed people can benefit from a loan without proof of income.

In particular, if you want to start a business, it will be difficult to present a proof of income at the beginning. This is mainly due to the fact that you have not yet generated any income in the current industry. In order to fulfill the dream of self-employment, a loan without proof of income is the right solution.

Is a credit without proof of income reputable?

Is a credit without proof of income reputable?

Basically, one can say that this type of credit is also serious. Ultimately, each credit company decides which applications to accept and which not. Generally, you should only trust in reputable companies. Furthermore, the contract should be transparent and a contract may not come about without the consent of both parties. This is an important criterion to watch out for.

In particular, if you want to conclude the loan without proof of income on the Internet, you should read the reviews of the bank. Thus, one can recognize important clues about the seriousness of the provider.

As a rule, companies are required to provide collateral when granting a loan without proof of income. These should by no means be too high. If, for example, a plot of land is required as compulsory security, this could be a clue to a dubious company.

Considering these important aspects, one can certainly find a cheap and serious credit without proof of income and get in this way to the money needed.

5 tips on credit without proof of income

5 tips on credit without proof of income

1. Credit marketplaces

When lending, the creditworthiness of the borrower is estimated. The bank uses a credit check to assess the risk of default. If the test is positive, borrowing is very likely. Important criteria of a credit check are among other assets, positive credit bureau entries and just the proof of income.

The proof of income enables the bank to ensure that the borrower regularly has money (income) to repay the loan. If there is no regular income, many banks reject a loan application. Nevertheless, there are opportunities for a prospective borrower to get a loan without a regulated income.

No regular proof of income does not mean that no income is earned. There are lenders who deliberately lend money to people who actually have no income. Such opportunities offer credit marketplaces. Even with bad creditworthiness, a loan is possible, but you have to expect high interest rates.

2. Credit through a co-applicant and terms

If you know someone close-by (friends, relatives, or family members) who would be responsible for a loan next to you, then you could include that person as a co-applicant. They then take the loan together. As a result, the creditworthiness of both persons is used, the security for the bank increases.

The likelihood that the financial institution will award a loan is high. The conditions in this situation are also improving significantly. This improved credit rating reduces interest charges and makes the loan cheaper for you.

3. Guarantee

As an alternative to the co-applicant, the guarantee may be withdrawn. Although similarities can be seen at first glance, the legal situation is different. The guarantee works this way, unlike the co-applicant, that the bank can not simply get the money while guarantor during the term.

Only when you, as a borrower, are unable to repay the loan repayments permanently will the guarantor be called in. For the bank, the guarantor is like insurance. The advantages of a guarantee are that the guarantee allows a loan without proof of income. The security of the bank increases and thus your conditions improve.

However, there are also disadvantages:
For example, that in the credit bureau file of the guarantor the registration of the guarantee takes place. This entry can again cause difficulties in your own credit. Also, the personal relationship between borrower and guarantor could be charged.

4. Mortgage Credit

If you urgently need money for a short time, a few days or weeks, a mortgage loan can be another option. This lender is not at all interested in your incomes, because he has security and is doing his business the moment he pays you the money. The pledge you use is, so to speak, the security of the lender.

If you do not repay the loan as agreed, the pawnbroker will sell your pledge after a reasonable amount of time. This loan is completely unbureaucratic and will be paid out to you in a few minutes. However, such a loan is very expensive. By law, you pay 1 percent interest per month and there is still a high processing fee added, resulting in an annual percentage rate of over 20 percent.

A small loan amount and short maturities are worthwhile, however, because there are many benefits associated with it, such as immediate payout, no debt, fast and unbureaucratic, no credit bureau query and proof of income, all this does not matter.

5. Payday Loan from relatives, friends & co

The easiest and easiest way is to borrow money from relatives and friends. If these are small amounts, you do not necessarily have to sign a written contract. Payment delays are easier to forgive than a bank.

The conditions are usually much cheaper than a bank or by foreign lenders. Especially with relatives and friends, it is particularly important to know from the very beginning that you can really repay the money. Otherwise, a friendship with it can break fast, because with money the friendship stops.

A loan without salary or even credit without income means that the lender waives the submission of proof of the monthly income. Corresponding loans are granted as freely available installment loans, mainly from foreign banks as well as from smaller domestic specialist providers. In the case of forms of credit other than the installment loan, on the other hand, there is no distribution without proof of salary.

Typical situations for the loan without salary

Typical situations for the loan without salary

Most widespread is the credit without salary in the direct financing of purchases via the trade. In this case, by far the most transactions require only the presentation of the identity card and a bank or credit card, except for large amounts. Finally, the discretionary credit is a loan without salary in the strict sense.

Although the bank has information regarding the receipt of funds when it is granted. It does not know, however, whether the employer transfers contributions exclusively as compensation for wages or possibly together with the salary payment.

When applying for a credit card, the issuance of which is subject to the granting of a short-term loan, most issuers also only ask for income. However, they refrain from submitting a corresponding receipt and only request the salary statement if the cardholder asks for a card limit that is higher than the default limit.

Furthermore, the mortgage loan is one of the loans, which are always awarded without salary, since the pawnbroker’s pledge serves as collateral.

A installment loan without salary

A installment loan without salary

An installment loan without a salary allowance is in most cases an instant loan. Due to the short processing time due to the promise of an immediate payment of money, the providers partly refrain from submitting a salary statement. In any case, you might not be able to review it, or only superficially, because of time constraints, so that you do not request it for ease of editing.

Refraining from submitting the salary statement does not release the creditor from his obligation to make honest statements regarding his income.

If he purposely glosses over his income situation when completing the loan application, the bank may pay the entire balance immediately upon detection of the wrongdoing. This is true even if the borrower has invariably paid the due installments without exception, despite the erroneous details in the loan application. Even a criminal assessment is conceivable if credit seekers intentionally misrepresentation in the application for a loan without a salary statement.

For whom is the installment loan without salary allowance?

For whom is the installment loan without salary allowance?

A loan without a salary allowance is suitable for people looking for a loan, whose income is made up of different components. While most banks do not account for ancillary income or only partially in the budgetary accounts in traditional lending on presentation of a proof of income, the applicant for a loan without a salary allowance is usually allowed to aggregate all income. Prerequisite for applying for a loan without salary is usually that the credit bureau information does not contain a negative feature.

Before applying for a installment loan without a salary statement, it is indispensable to carry out a credit comparison. It is acceptable for lenders to charge a higher effective interest rate than for traditional installment loans to forego the submission of the income asset in view of the increased risk of default.

Nevertheless, a credit comparison shows that, depending on the maturity and the amount of the loan, there are different offers for a loan without a salary statement, so that the comparison leads to a significant saving of interest.

In the case of a loan without income, the applicant need not prove the amount of his monthly income to the lender. Depending on the extent of borrowing, the bank does not ask or relies on the information provided by the applicant.

Loans without presentation of income documents have tradition in many areas

Loans without presentation of income documents have tradition in many areas

Lending without proof of income is not a completely new approach, but has tradition in several areas. Most credit card companies do not require proof of income when they apply for a credit card. Instead, they will endow the card with a low- profile card and will not require a salary statement until the holder requests it.

On closer inspection, even a discretionary loan is a credit line established without an income receipt, even if the bank is aware of the extent of the incoming payments. However, she does not know whether the transfer of the employer is solely about the salary or whether it partly includes a reimbursement of expenses. In the case of trade finance, the presentation of proof of income is also largely uncommon.

Why do financial institutions grant loans without proof of income?

Why do financial institutions grant loans without proof of income?

Lending without proof of income is mostly for pragmatic reasons. Many banks say that they will pay out in the case of instant loans within a maximum of two to three bank working days. This short period of time available to them for the processing of applications inevitably precludes the careful consideration of the loan documents usually required.

It is therefore consistent that some banks do without immediate credit on the presentation of income documents and account statements. In the case of short-term loans, however, the reason for not having a proof of salary is the low amount of credit that new customers receive. For later possible higher amounts, the timely repayment of the previous loans from sufficient credit rating applies.

Honest information is indispensable even without proof

Honest information is indispensable even without proof

Not in commerce, but when borrowing freely through a bank, the amount of monthly income is usually stated in the loan application, even if the creditor does not provide proof. The obligation to correct information in the application for credit remains in this case of course. As soon as the loan applicant intentionally misrepresents his income, the bank has the right to terminate the loan agreement at any time without notice and to pay the entire outstanding amount immediately.

The only prerequisite for this measure is that the lender becomes aware of the dishonest information contained in the loan agreement. The hitherto punctually paid loan installments do not abolish the possibility of termination, since false statements in the loan application constitute a gross breach of contract. A prerequisite is of course intentional action.

In determining the personal income, the loan seeker may take into account any additional income, unless the bank explicitly refers to inclusions. These are to be carefully considered. Most financial institutions that offer credit without proof of income accept the inclusion of all income components by the borrower. For non-monthly cash withdrawals, a conversion to the monthly amount is required.

For whom are loans without pay slips suitable?

For whom are loans without pay slips suitable?

Loan applications without salary allowance are particularly suitable for credit applicants who earn a large amount of salary or whose income is made up of several parts.

For self-employed and freelancers a loan application without proof of income is also beneficial. Although they can generally use the last tax return as an income receipt, but they receive in part only in the second half of the year, so they have previously only an outdated document with correspondingly low informative value. Lending without evidence of income is often associated with an instant loan.

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