Credit for mothers on parental leaveUncategorized
Parents are entitled to parental leave for their child until the child is three years old. It is not uncommon for the family to grow larger, which involves many costs. The child needs many things, such as a bed, a nursery and new clothes. During this time, the mother receives parental allowance, which is not nearly as high as the previous salary.
Some mothers have not worked before and do not know whether they can pursue a job after parental leave. In these three years of parental leave, money is often scarce and a loan for mothers on parental leave is being considered.
Application and requirements
First, the mother should draw up a budget at home to see if there is enough money to pay off a loan for mothers on parental leave. The man’s salary can also be included if someone is married. If the mother is a single parent, there will be difficulties applying. Parental allowance is a benefit from the state and therefore a social benefit. However, social benefits may not be counted as income, since they cannot be attached in the event of a default in the credit installments.
A attachable income must exist in any case. In addition, the bank will examine Credit Bureau when applying for a loan for mothers on parental leave. All loans and payments that have not been made are recorded in the Credit Bureau. If there are too many of these entries here, one speaks of negative Credit Bureau entries. these reduce the creditworthiness of the customer and can even lead to the loan being rejected.
Improve mother’s creditworthiness
The creditworthiness of mothers is worse from the ground up, since they often have no income during parental leave. It is therefore important to improve your own creditworthiness so that the chances of getting a loan for mothers on parental leave are increased. For example, a surety can contribute to this improvement. This guarantor can be your own parent or a friend. The guarantor must be able to meet the same requirements as the applicant in order for a bank guarantee to be approved.
This means nothing else, that there must be attachable income, no negative entries in the Credit Bureau and that the guarantor must be of legal age. But there is also the possibility for the mother to use her own life insurance as security so that the creditworthiness is better classified. Banks accept this life insurance if it has a surrender value as high as the loan amount. You can find out the surrender value from your insurance documents, where the insurance years and the corresponding surrender value are entered.
No credit opportunities – still get some money
Even if there is no loan for mothers on parental leave, the mother should not give up too quickly. It can still get money, at least on a small scale. It is not uncommon for offices to grant loans when it comes to important things like a bed or clothing. For this purpose, offices offer vouchers that can be redeemed. Another alternative would be to ask someone you trust to lend a small sum. This could be used to pay important bills or make purchases. Anyone who can use this alternative should insist on a loan agreement. The details of the borrower and the lender are entered in this contract, as are the loan amount and the monthly installments.
Those who do not have this option can search for a personal loan on the Internet. Here, private individuals grant private loans with less stringent requirements. However, the increased risk is rewarded with high interest rates. This would make this loan more expensive for mothers on parental leave than for the bank. A credit comparison should show whether this is really worth it and whether the loan can be repaid without getting into trouble. Here it is calculated exactly how high the interest and the monthly installments will be if you enter the effective annual interest and the loan amount.