There may also be an increased need for money, particularly during training. Low or often even no income in training is the starting point in which you find yourself financially during the training. But there are also various ways of earning money during training, for example through the loan during training.
The loan in training
There is also a comprehensive need for consumption in training. Since apprenticeship periods tend to be longer and longer, apprentices are also getting older and so real realistic income only comes at a much later time than a few years ago.
However, trainees can also take out a loan during their training. To do this, two conditions must first be met. The trainee must be at least 18 years old and have a fixed income. For lending and the amount of credit, the higher the fixed income that a trainee has, the higher it can be.
The trainee must have a checking account in order for a credit transaction to be concluded. It is particularly favorable if the checking account is kept at the bank where the loan is also taken out. Trainees in particular often still live with their parents. However, the term of a loan is often very long-term. One should therefore already bear in mind when taking out the loan that one might want to move into one’s own apartment after completing the training and that these plans can be thwarted by a high credit with corresponding burdens of installments.
The loan should therefore be designed so that it can still be shouldered after training and with increasing monthly financial burdens. The amount of the loan during training is adjusted to the income of the trainee. This means that a trainee is only provided with a limited loan amount.
If the credit requirement is greater than the loan amount made available, the trainee has the option of providing a guarantor to secure the loan amount. In this case, the guarantor enters the credit agreement as the third contracting party and secures the credit with his own assets and income. This means that the guarantor has to undergo a thorough examination by the bank. This includes checking the income, financial obligations and also a Credit Bureau query.
Only if the guarantor also has an impeccable credit rating can he guarantee the loan as such. If a guarantor is provided, the loan amount can be extended to the highest possible amount for the guarantor. Even if the trainee has a Credit Bureau entry, a guarantor can secure a loan.
As a trainee, you should always bear in mind that your own income is still very low and that your own professional career is not yet fixed.
Important requirements for credit in training
The basis for lending in the course of training lies in an employment contract and regular monthly income. It is also important that the trial period has already been exceeded during the training. Borrowing can prove difficult, especially when you have just started an apprenticeship. Here too, the position of a guarantor can improve one’s own situation.
Alternatively, you simply wait for the trial period to then apply for a loan. Not all financial institutions are willing to sign a loan agreement with a trainee immediately after the trial period, but some banks can.
Another important prerequisite for borrowing in training is that the trainee is of legal age. Only then will the trainee be fully legally competent and may also conclude effective loan contracts. The credit check is also common for loans in training. This means that the trainee is checked both with regard to his solvency and willingness to pay as well as with financial legacies.
The monthly income is used for the check. Then the monthly obligations are compared. A Credit Bureau test is also carried out. It is advantageous for apprentices when borrowing if they do not yet have to finance their own apartment, since this expenditure considerably reduces the apprenticeship remuneration and therefore also reduces the chances of a loan.
The Credit Bureau query is essential when applying for a loan in Germany. Especially for young people, a forgotten cell phone bill can have a negative impact on the Credit Bureau score. Anyone who has entries here will also not receive any credit during their training.
If the training allowance is below the garnishment limit, some banks often insist on the provision of a guarantor because of the impossible attachment in the event of a loan default. Banks often like to protect themselves here, especially if the income is below this garnishment limit during the entire training. Applicants should prepare for a limited loan amount during training. This is how banks prevent the loan default, but at the same time the applicant is also protected against over-indebtedness.
The loan amounts that are made available for the loan during training are between around 1,000 and a maximum of 5,000 USD. Trainees should exercise caution when it comes to aggressive online loan offers. Before a trainee gets involved in a loan agreement with very high interest rates due to the increased risks for the bank, it usually makes more sense to wait until after the training to start borrowing.
A specialty: the student loan
Student loans are a special form of credit in training. This is aimed specifically at students who are enrolled at universities and who must also prove this when applying for a loan by means of a matriculation certificate. The student loan is designed to make the student’s financial situation easier during their studies. In addition to studying, many students have to take on jobs to finance their education and living expenses. This in turn means that a student often extends his study time considerably.
Many credit institutions provide student credit for these students. In the case of student loans, in order to obtain this form of credit, it is first of all necessary to provide evidence that the applicant is studying, because these loans are often offered particularly cheaply and with special conditions. In the case of student loans, the applicant has the choice of whether the loan amount is to be paid out once or whether a monthly financial benefit from the loan is desired.
With a monthly payment, the borrower can get a precise overview of his finances and also has regular financial income. For the banks, the collateral for the lending results from the positive job prospects for students, which is why no evidence of income is usually provided. The Credit Bureau query is also carried out for student loans.
Another special feature of this student loan is that the borrower does not begin repaying the loan immediately after the first payment or even the payment of the entire loan amount. With this form of loan, the repayment of the loan is postponed to the time of study. Many banks also give the applicant a grace period, which means that payment in installments is only started three or six months after the end of the course. During this period, the banks see realistic opportunities for graduates to have an adequate job.
Student credit is a special form of student loans. The background for the lending for the banks here is that intensive customer loyalty to university graduates should be achieved already during the study period, who take up qualified activities after graduation, so that solvent customers represent the banks.