In the case of a cash credit for trainees, the first point of contact can be the parents’ house. If the parents are liquid, the help is usually unproblematic. The compelling reasons for lending can vary for a trainee.
So he wants to buy a new laptop, a smartphone or to finance a small vacation trip. The house bank will usually meet these rather small credit requests with a credit facility provided. Most credit institutions grant a cash credit for trainees as part of a overdraft facility; the money can be used immediately at the counter or at the ATM.
Use a disposition only for a short time
The normal credit line for a student’s overdraft facility is usually a monthly salary. With a good reputation, however, a two to three times the monthly salary can be spent. In addition to issuing a overdraft facility, the house banks are rather buttoned up with a cash loan for trainees. It should also be noted that a prepayment loan is expensive. Banks can pay for the convenience of the borrower well.
An average of up to 17.5% of interest is required for a granted overdraft facility. In view of the trainee’s low income, such costs should be avoided. Only those who really need a cash loan for trainees at short notice should resort to an overdraft facility.
A cash credit for trainees and the alternatives
A provider is usually easy to find from online banks. But with credit offers that are secured with a training allowance, the offer is rather poor. With a low income, a trainee is not creditworthy.
Without outside help or real assets, the loan market is usually closed to a trainee. The problem can be solved by consulting a creditworthy guarantor. The parents are the first choice. Like other guarantors, these must also be solvent, have positive Credit bureau information and a sufficiently high and regular income. The loan provided grants a loan even with a low training income.
The question should be asked whether under these difficult conditions the parents should not simply act as borrowers. However, the same conditions apply as for the creation of a guarantee.