Parents experience an exciting time with their children. The newborn turns the whole day’s plan upside down and there is much to do and get. The nursery has to be set up, clothes and food have to be bought and the current bills have to be paid.
Since there is no salary during parental leave, it is difficult to buy and pay for everything at once. Not infrequently then have to be cut and some bills can not be paid. So that it does not come so far, a loan can be taken up despite parental allowance. However, parents have to be aware of this before applying to the bank of their choice. Anyone who is rejected will receive an entry in the Schufa. So everyone should be sufficiently informed and prepared in advance.
When will the loan be granted and when not?
For parents it is not always easy to get a loan despite parental allowance. This is often due to the lack of creditworthiness that parents often do not own at this time. If a salary is lost, the monthly income is much lower than before parental leave. Who sets up a budget, will quickly see how much money is left at the end of the month. For some parents, there is nothing left, so there is no money for the installments that have to be paid monthly for the loan.
Here, an application is often rejected by the bank. However, who as an individual already has a very good salary, which is far above the seizure allowance, can hope with good chances for a loan despite parental allowance. The better the credit rating, the higher the sum of the loan can be.
Poor credit – provide collateral
If you have a bad credit rating and therefore an application could be rejected, you should get collateral on your side. A bank guarantee is often the best alternative to improve your credit rating so that it will come to a loan despite parental benefit. A guarantor may be an acquaintance or a family member. A guarantee is a bad credit security for the bank, because then it can assume that the loan will be repaid in any case. For a person to be able to assume a guarantee, he must follow the bank’s guidelines.
Without fulfilling these requirements, the person is not used as a guarantor. Thus, a secure income must be available, which comes from a non-independent activity and a permanent employment contract exists. The creditworthiness must be given, which means that there must be no negative entries in the Schufa. In addition, the guarantor must be of age to be able to assume a guaranty.