Credit for students
In general, anyone can take out a loan who has a good credit rating. Of course, the credit bureau information also plays a role, whether the application for the loan is approved or not. So it is quite possible that even students can get a loan from a bank, if they meet certain conditions.
What requirements must be met by the student?
For a student who wants to apply for a loan from a bank, the same conditions apply as for any other person. This means that the student must have a certain credit rating, which, after deducting current expenses, still leaves enough room for repaying the loan to the bank on a regular installment basis.
Often it is the case with students that they have a mini job. Some students have student jobs or do a dual study, which is paid. Trainees also have an income and can apply for a loan from a bank. In addition to the credit rating and an unencumbered credit bureau information, however, the age of the pupil also plays a role. To apply for a loan as a student, you must be of legal age and fully capable of business.
The amount of the loan
How much the credit granted to the pupil will depend on how much the student earns and how much money he has left from his income, if all running costs are deducted. Depending on how much the student can repay from the remaining money to the bank, the amount of the loan is also calculated.
However, since students usually have no higher income than an ordinary mini-job of income, usually only loans from a small amount are granted.
It must always be kept in mind that interest is charged on repayment and whether, as a student, you really want to take out a loan or you prefer to save the money for the purchase on a monthly basis, thus avoiding interest and a possibly necessary guarantor.
Loans for underage students
Since underage students can already have an income in the form of a mini-job, they can also apply for a loan. For this, however, further requirements must be met. Since the underage student is not yet fully able to work, the bank demands from this a guarantor, who takes part in complicity and signs the application for the loan.
However, the risk is fully borne by the guarantor, as he has to pay for the entire amount to be paid if the underage student does not meet his repayment obligation, as agreed in the contract.
The student account
Since it is usually not very easy to get a loan from the bank, if you are a student and you do not have a guarantor who agrees to join in the blame, you can help with a special account for students. This student account is offered by some banks and, in a sense, acts like a real loan.
By reaching the age of majority of the account holder, a certain function will be activated on the account. This so-called dispolimit, which is possible in the account, allows the student to withdraw more money than is actually in the account. In this sense, this function works like a loan.
One should, if you want to use this feature, make sure that this is usually associated with very high interest rates, which are in no relation to ordinary loan interest. Therefore, this feature should be used wisely and only in special cases or emergencies.
5 tips for credit for students
1. The credit for students
The prerequisite for a loan is actually always that the borrower has income from which he can make the repayment. A syndicated loan is nothing more than a loan – one with a very high interest rate even more. For students, the alternative is often not given.
Anyone who has been given the opportunity to overdraw their own checking account from their own bank can also use this option.
The account must also be covered again and this income is needed. Pupils should therefore not take over, even if the bank grants them several hundred euro disparities.
2. Student is not equal to student
You can be a student if you are still underage and compulsory and are currently seeking your first school leaving certificate. A loan is not recommended. But even as a vocational student who is in the middle of training, one is considered a student and still has a monthly wage. In this case, it is quite common for banks to lend.
The salary does not have to have a certain minimum amount, but should rather be in a healthy relationship to the loan amount. However, the monthly salary should still go through a secure job, which is also based on an employment contract.
3. Collateral is needed
Even those who still go to school can not just apply for a loan. Any bank, whether branch or online, wants to know that it gets the money back. Collateral must also prove a student. This can be the case, for example, through a permanent employment contract for a part-time job.
In addition, final accounts must be submitted, showing that the salary is actually received on a regular basis and does not fluctuate significantly in size. In this way, the bank ensures that the borrower – in this case the student – has what is needed on a monthly basis.
4. Reasons for the student loan
It is not uncommon for students to access foreign money. Those who are currently in their first vocational training often move to their first home. But at least one bed must be purchased then. As a rule, students therefore apply for mini and small loans up to a maximum of 5,000 euros.
For these loans, the bank usually does not ask for such high collateral, but still wants to know what the money is needed for. Some students also plan a big trip or want to buy a wheelchair like a car or a scooter. The reasons are manifold, but should remain comprehensible.
5. Compare also as a student
Although a relatively low-income student is not the customer of choice for a bank, it does deserve credit when signing a loan agreement. In this respect, the potential customer is always obliged to compare some offers. Even as a student, it is worthwhile, if you look around, where there are the best deals.
Details on the repayment in the form of special repayments are also to be observed. The more flexible the loan is, the more benefits this will bring to the borrower. As soon as some more money is available, a higher repayment can be made. In the end, this flexibility can save a lot of money.