Only a few lenders offer an installment loan for trainees and it is not easy to obtain it. The loan providers for an installment loan for trainees should, however, be compared in any case if the offers differ greatly from provider to provider. You should definitely save on the cost of a loan, because trainees have a low monthly income.
The installment loan for trainees – the problem
If the lenders are concerned with the trainees and an installment loan, then many lenders are rather hesitant. This is because there is no certainty that a trainee will be taken on after the training. The remuneration during the training is also very low and there is usually hardly any attachable income. The banks, therefore, need other collateral and often require a solvent guarantee. The guarantee guarantees regular repayment and the guarantor must be creditworthy for this. A guarantee is urgently needed above all when it comes to a higher loan amount for new furniture or a car, for example.
A trainee can often appear as the sole borrower when buying a TV or with a driver’s license. These are usually smaller amounts between 500 and 2,000 USD, where often no guarantee is required. Often, however, it may be better to save a little and then buy something. Should an installment loan for apprentices be considered, then it must also be well calculated what monthly installments are possible? A trainee should compare their income and expenses and check what is still available.
An installment loan for trainees with no credit experience
Hardly any trainee has had any experience with a loan and hardly knows what it is like when a commitment has been made. Often a certain amount has to be paid month after month for the first time. Since the remuneration of trainees is often rather low, the monthly burden may not be sustainable in the long run.
A loan at a young age and then the first payment difficulties should be avoided. There would be a Credit Bureau entry in the event of payment defaults and this means that the creditworthiness is gone for the first time. It can always be better to start saving or to ask family members for financial help.
Important information about the installment loan for trainees
Hardly any trainee can pay for wishes such as working materials, computers, cars and driving licenses out of their own savings. Borrowed capital is often required and many rely on installment loans. Compared to a normal employee, however, it is much more difficult to grant a loan. However, this cannot be generalized, because some have good training pay and others a very bad one.
Of course, it is not always the monthly amount that is important, because spending also plays a major role. If you have enough money left after deducting the expenses and the Credit Bureau information is positive, you will receive an installment loan for trainees without any problems. It is only awarded when the borrower is of legal age, because the minimum age is 18 years.