Receiving a loan is particularly difficult for the self-employed, freelancers and the unemployed. Credit institutions, house banks and online banks require proof of a regular income in addition to the credit check. Therefore, taking the loan without proof of income often fails already when completing the application.
Collateral often has a positive impact on borrowing
Freelancers and self-employed persons who are granted a loan without proof of income are often asked to name a solvent guarantor or to secure the loan with collateral, such as a property or inventory from the company. Furthermore, for a positive decision the long and good cooperation with the bank can be decisive. Unemployed people, on the other hand, have few hopes for a loan. The paid work of the employment office is usually sufficient only for a living and is not sufficient for servicing a credit.
Credit without proof of income through credit intermediaries
Even with credit intermediaries on the Internet, missing proof of income is an important criterion for processing a loan request. Employees or self-employed persons who can provide evidence of regular income also have clear benefits here. Of course, unemployed people can also apply to reputable credit intermediaries for a loan. However, the application should be free of charge and not subject to any obligations. Also, the commitment of the loan should not be tied to the conclusion of a life insurance policy or the conclusion of capital-related benefits. These contracts are often not serious. The loan will not be approved and the contracts will be upheld.
A loan is an extraordinary burden
Those who are unemployed and have no prospect of permanent employment in the near future should be aware of the extraordinary burden of a loan. If the loan can not be serviced on time, there are additional costs that have to be paid in addition to the loan installments. In the worst case, an insolvency occurs and the affidavit must be filed. If the house bank does not comply with the loan, it should be considered whether it makes sense to request a loan without proof of income from another provider.