The completion of the 18th year of life is the basic requirement to obtain a loan. However, this alone is not enough, because not all adults are creditworthy. Whether they are depends on their credit rating, which can be very different in part. Two factors have a special meaning here. This is the income and the credit bureau information. However, the latter only plays a role if the credit for 18-year-old is to be taken up at a German bank. However, a sufficiently high income is indispensable in every case.
Whether a person is creditworthy at the age of 18 depends crucially on whether you are already working, still in education or student or student. Working people, according to experience, have a much easier time getting credit than other people, no matter how old they are. In addition, income must be at a level that justifies lending. Exceeding the attachment exemption limit is the minimum criterion, which a credit applicant must fulfill.
Not only is it possible to take out a loan from a bank based in Germany, but also a loan abroad or from a private person. In addition, the borrower has the choice whether he or she would prefer to seek a loan by himself and make the application or seek the help of a private credit intermediary. 18 year olds often do not yet have the necessary overview and in many cases have little knowledge of financial matters. It is therefore all the more important that they obtain comprehensive information before deciding to take out a loan for 18-year-olds.
The first point of call for a loan for 18 year olds may be the house bank. In addition, it would be advisable to compare several offers. This is most likely to happen on the internet. 18 year olds usually have a good affinity to the internet. For them, when compared to older people, it is often self-evident that they first search the Internet before consulting other sources of information. They can also take this route when looking for a loan.
A credit comparison is quick and provides reliable information about the current loan offer and the terms of each bank and private lender. In addition, a loan calculator can be used. This allows you to enter specific search criteria that correspond to your personal wishes. The more precise the search is designed, the more likely it is to find a loan for 18 year olds that is optimally tailored to the needs of the 18 year old borrower.
Installment and disbursement loans
Installment loans are the most common forms of credit. They have the advantage that the customer can use the money freely and that at this point there are no stipulations from the bank. In addition, the entire loan amount is basically paid out in one sum and is then immediately available. The repayment begins at an agreed time. Either the first repayment installment is due within a few days or one month after the loan is disbursed, or the customer is given a payment break. How long it is depends on the bank’s requirements. The monthly loan installments are consistently high during the term and usually do not change. Deviations are recorded by contract.
As soon as 18-year-olds have their own account with regular incoming payments, there is usually nothing in the way of setting up a credit line. If you are still in education, you will only receive a minor credit line, while a person with salary or wages can receive a significantly higher credit line. The details are individually regulated. A credit line is available at any time wholly or partially, but should not be constantly maxed out. This is especially true for 18-year-olds, who often still have to learn to handle money properly. At least in the medium term, all sums of money with which the checking account is overdue should be repaid. Otherwise, it would make sense to think about a rescheduling and receive a installment loan.
Many 18 year olds want to finance their first car. Not everyone has the opportunity to fall back on the support of parents or other relatives to the extent that a loan for 18 years completely unnecessary. Often the financing is a mixture of different variants. If the relatives are willing to contribute in part to the cost of the car, a down payment can be made. This makes it possible to reduce the amount of credit needed for the car.
A loan for 18 years to finance a car can be applied for at any bank offering such a loan. In addition, a loan from the dealer is possible. Before deciding on a loan for 18 year olds, both options should be thoroughly thought through, information gathered and on the basis of the insights gained then a sound decision for a loan for 18 year olds to be made.
A loan for 18 year olds can also be a loan from abroad. This is usually a loan issued by a bank based in Liechtenstein. If the income amounts to at least 1150 euros net per month and the 18-year-old has a work experience, there is generally nothing against a loan from abroad. However, the current employment contract must already exist for 12 months. Apprentices or students are therefore not eligible for borrowing abroad. It plays with a loan from abroad but does not matter, whether negative credit bureau entries are present, since a credit bureau information here is not requested in principle.
Foreign loans are essentially available in three variants. The loan amounts are 3500 Euro, 5000 Euro or 7500 Euro. The term is usually 42 months, with two repayment-free months after loan payment. For a foreign loan, it is imperative that the applicant is at least 18 years old. In addition, the German citizenship and a residence in Germany must be proven.
The application for a loan for 18 year olds from abroad can be made on the internet. There is no need for traveling abroad. The interest rates are slightly higher for a loan from abroad than for a loan from Germany.