February 8, 2020

Credit for small jobbers

Everyone has their own personal wishes and dreams. These wishes do not always fit into the current budget. Low-wage earners and small-jobbers in particular often have to forego the fulfillment of their wishes and dreams, at least for the moment. However, since some purchases cannot be postponed, these groups of employees in particular are dependent on loans in order to be able to make certain purchases.

This can be the case when the wish for a new computer or a large flat-screen television is fulfilled, as well as when a refrigerator needs to be purchased after a defect in the old device. However, finding a loan for small-jobbers is often difficult due to their income situation. In many cases, they receive a loan cancellation as soon as their monthly income is discussed.

Are small-jobbers in the credit market without a chance?

Are small-jobbers in the credit market without a chance?

It can certainly be said that the search for a loan for small-jobbers is more complex than, for example, for an official. This is due to the low creditworthiness that small-jobbers generally have. For banks and other lenders, the risk of capital loss is too great to count small-jobbers among their preferred customers. However, it is easier to get an installment payment in retail for small jobbers. With purchases of a maximum of 1000 USD, a loan for small-jobbers is relatively easy to get.

Small-jobbers will probably only get the classic installment loan from a house bank or a direct bank on the Internet if they can provide additional security for the lender. In addition to real assets that can serve as security, such as real estate or luxury goods, guarantors can also improve the chances of getting a loan for small-jobbers. If the guarantor has a better monthly income and thus a better credit rating than the borrower himself, this additional security is often sufficient for the banks to also grant a loan to small-jobbers.

Keep an eye on the monthly

Keep an eye on the monthly

Whichever way a small-jobber gets the loan he needs, he must be able to bear the financial burden that he receives every month in the form of the loan installment over the entire period of the loan. Often only a well-prepared budget and iron discipline can help. With a monthly income of around 400 USD, every expenditure must be carefully considered. Even if the total cost of the loan is higher due to a longer term, small-jobbers should go this way. This is the only way to avoid an excessive burden on the monthly budget due to the credit rate.

In addition, the budget should always include a buffer for unexpected expenses that cannot be postponed. If the budget is calculated too tightly and the borrower falls behind with one or more installments, dunning costs quickly become due. In the worst case, the credit agreement can burst and the full loan amount is due immediately. It would be difficult to cope with such a situation with income from a small-job alone.

written by Pauline Kunkle - Posted in Credit