Reaching the age of 18 brings not only the age of majority, but also a great responsibility. From this age, most young adults have to learn to care for themselves and make decisions independently. For this begins at the age of 18 a period of life full of changes – for example, the entry into professional life, the purchase of a car or the move to the first home …
Of course, the changes mentioned always require a certain amount of capital, which, from the point of view of many young adults, is best provided by taking out a payday loan. But is borrowing at the age of 18 readily possible? What requirements must be fulfilled and what should be considered?
Is one creditworthy at the age of 18?
Basically, all natural persons who are not under the care, reach the age of majority before the creditworthiness. Anyone who is capable of credit can conclude legally effective payday loan agreements in their own name. From the point of view of the lender, however, creditworthiness or creditworthiness also counts. Even at the young age of 18, one is already measured by typical factors (is there a fixed and regular income, exist additional or substitute collateral?). The extent to which the typical credit requirements have to be fulfilled, of course, always depends on the desired payday loan amount for borrowers 18 or older. With a small payday loan, for example, 500.00 or 1,000.00 Euro, it can be quite enough if an 18-year-old borrower has a training contract and has already completed his probationary period successfully.
Requirements for a payday loan within 18
If you want to get a payday loan from your bank at the age of 18, you usually have to meet the same credit requirements as an older borrower. This means that even young borrowers should have a steady and regular income and, ideally, additional collateral , such as assignable savings. If the credit requirements of the respective bank are only partially met, co-applicants or guarantors usually help. The parents of a young borrower, for example, can act as full co-applicants, which can have a very positive effect on the child’s creditworthiness.
Are payday loans available for young apprentices and students?
Although a trainee has a regular income, the training contract is limited to the duration of the respective training (for example, two and a half or three years). As a result, many banks only grant one payday loan if they are paid in full according to the agreed interest and repayment installments . Example: A trainee in the first year of apprenticeship receives a training allowance of 600.00 euros net. At a monthly rate of 150.00 Euro, the apprentice would like to take out a payday loan for 1,500.00 Euro.
Calculated without interest, this payday loan would have a term of 10 months, so that the full repayment would be reached in the first year of training. In a credit calculation like this, trainees have excellent chances of obtaining a desired payday loan amount. Of course, the costs of living are also taken into account for apprentices, who often live at home or therefore do not have to pay rent, in order to determine which monthly rate is justifiable with the respective training allowance.
Payday loans for students
For adult students, it is usually not possible to take out a payday loan without the help of a solvent co-applicant. Even if, for example, by the exercise of a part-time job on 450-euro basis, sufficient monthly repayment would be available, without replacement securities require German banks for an indefinite term or for a longer term employment. A part-time job can not fulfill this criterion, so that students seeking credit are fully dependent on the help of a co-applicant .