Taking out a loan despite a negative Credit bureau and an apprenticeship is a complicated and difficult topic to solve for those who are usually still young. Due to one or more negative Credit bureau entries and a relatively low monthly income due to the training relationship, the chances of getting a loan are rather poor than right.
Financing during training
The first professional and financial success comes with the training relationship. With this new phase of life, the foundations for progress are apparently laid. With the specially developed financial means, however, the demands on personal living comfort increase, so that financing is a popular means of implementing one or the other acquisition project.
The status of a trainee represents a considerable risk for banks. Experience shows that the risk of over-indebtedness through overestimation is extremely high. Insolvency would mean financial damage to the credit institution.
Requirements for a loan application
A negative Credit bureau entry combined with an apprenticeship will result in a rejection of the requested loan, unless other favorable circumstances, such as a guarantor or other security, can be presented. In addition, the applicant must be at least 18 years old and be able to prove a residence in Germany with a valid ID card.
If the applicant’s creditworthiness is correct, a guarantor with good payment behavior towards the bank should have already been specified. If these requirements are met, nothing stands in the way of a cheap loan despite a negative education and training. As trainees live at home with their parents in 90 percent of all cases, they usually assume responsibility for the payment practices of their pupils as guarantors.
One step at a time
Hurried and hasty decisions regarding the taking out of a loan lead to fatal consequences in this already bad starting situation. In spite of the temptation to use your own money, you should still handle it carefully and in a controlled manner. If, for example, there is added value from the loan taken out, this financial planning does not stand in the way. Any unnecessary purchases, such as a new TV of the latest generation, should be well thought out.
Such investments can quickly lead to over-indebtedness. The significant increase in insolvent people over the past ten years shows that financial emergencies of this kind are becoming increasingly common. A loan despite negative education and training is not an impossibility, but also not a matter of course, the recklessness punished with finance immediately.