Credit for single mothers bad chances with banks

Single mothers have to struggle with a difficult balancing act: since they have to take care of a child on their own, they have high financial needs. However, the time window is limited due to child-rearing obligations. Single parents have at best a part-time job. The income is not sufficient in many cases. Weak incomes, moreover, make it difficult to obtain a loan. We tell you how your chances of getting this are best.

"Can you even get a loan as a single mom?"

In fact, the greatest chances of getting a housewife loan on the Internet are if you are a single parent (we will discuss this further later in the article). In the branch or direct bank you trust, on the other hand, you will have great difficulty in obtaining an appropriate loan. What can be decisive reasons for this, we would like to present to you.

Single mother with child

Reasons why single parents find it more difficult to obtain a loan from Haubank

Branch banks usually do not give loans to single parents due to creditworthiness problems. Credit repayment ability is insufficient in their eyes.

Most banks calculate those according to the following formula:

  1. From the monthly income, all expenses of whatever kind (food, rent, electricity, savings reserves, etc.) are deducted.) deducted.
  1. In addition, the potential credit rate is subtracted.
  1. Now there must be a surplus of 150 euros on average (the value of most savings banks), or at least 100 euros left over.

Income of single mothers leads to problems in credit rating calculation

For single parents, the expenses for the child are also deducted.

This causes the following problems that you should know about:

  • Child support may not be recorded as income
  • Child support may also not be recorded as income. However, some banks offset this against the expenses for the child
  • Unemployment benefits I and II are also not booked as income, the same applies to social assistance for the child
  • Banks also plan for an additional risk factor in the case of part-time employment, because there is a risk that you will have to give up your job to look after the child

If you are a single parent, your child dramatically weakens your credit rating. The extra money that could compensate for this actually does not help you because it is not recorded as regular income.

Online or bank branch? How do I get a loan as a single person?

Banks: guarantors and collateral as a requirement when single parents apply for loans

As a single parent, you can practically only get a loan from a bank with guarantors. It is also often required that it is a full guarantee: The guarantor must accordingly agree to repay the entire loan in case of need.

Theoretically, there is also a chance that you will receive the loan through collateral. For example, they can pledge real estate property. In practice, however, it has been shown that most single parents do not have the necessary collateral.

Even if this is the case, a guarantee is more advisable: this way, you do not immediately lose your home in case of a failed repayment. The use of home ownership should therefore only be the very last resort.

Interest rates are usually slightly higher for single parents

Interest rates for a loan granted to single parents are mostly slightly higher without a guarantor. This finding is generally valid. Every lender knows about the increased risk of a corresponding loan and hedges this by higher interest rates.

Individual credit check in the online loan allows single parents better credit opportunities

If you need an online loan for single parents, it is advisable that you research other creditworthiness requirements. Make sure that money you receive as financial support (z.B. Child support, alimony and government payments such as z.B. Housing and parental allowance) are taken into account as fixed monthly income, as is the case with the online loan from VEXCASH.

Especially if your financial needs are comparably low and you only want to borrow a small amount of money, you can check your credit chances with us without obligation, without this having an impact on your Schufa score.

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