Payday loan for apprentices: what you should pay attention to
The payday loan for apprentices
Apprentices have only a low income and quickly comes a situation in which the money is not enough to pay for a necessary purchase or repair. In these cases, credit could help, but the source of the financial bottleneck, low income, is also the biggest obstacle to lending. In addition, they do not fulfill other conditions attached to lending: they are not necessarily employed for more than six months, are not outside the probationary period and their employment is not indefinite. Nevertheless, there is also the possibility for apprentices to obtain a payday loan from a bank.
What is the payday loan used for?
In view of the unfavorable starting position, the banks look very carefully at a payday loan application from a trainee, for which the payday loan amount is actually needed. Normally, most payday loans are not earmarked (with the exception of real estate and car finance), but in these cases, banks are authorized to ask what the purpose of the payday loan is . This decisively determines the commitment or rejection of the payday loan application. For example, car repair costs are recognized because the vehicle is needed to travel to the training center or to finance equipment needed for the training itself (laptop). Rather unlikely, however, is the granting of a payday loan for luxury goods (flat screen TV) or travel.
Payday loan amount and term
In addition to the intended purpose, other factors also play a role, which decide whether to accept or reject the payday loan request. This includes on the one hand the payday loan amount, it is for payday loans for trainees between 500 and a maximum of 5,000 euros. Also important is the duration of the payday loan. In view of the temporary training contract of a maximum of three years, the repayment term should not exceed this time. Without already contractually assured takeover, banks are otherwise too risky and the payday loan is not approved.
What else should you pay attention to
For successful borrowing, it is essential to provide the Bank with all necessary documents (including training contract, salary statements for the last three months). Make sure you complete the payday loan application truthfully, completely and without errors. Always be polite and reserved when communicating with the banks. Take the opportunity of a free payday loan comparison with an online payday loan calculator and get so other cheap offers. When doing so, always give the payday loan amount, duration and installment amount actually required in order to achieve comparable results. Regardless, you should be aware that a payday loan always implies a financial burden on the monthly installment. In order to keep essential expenses for food and clothing from being restricted, the monthly rate should not exceed 20 to 30 percent of your net income. Think carefully about whether the payday loan is really necessary and whether the intended use is worth the extra burden.