The most common problem for young people when applying for a bank loan is usually the lack of a stable source of income . Combining studies, school and work usually results in employing young people on work contracts, specific work contracts or partial contract forms. How, despite short contracts and frequent work changes, how to get financing for a young person ? How to make it bank financing?
Loan for young people, minimum age
What is the minimum age when a customer can get a bank loan? Most banking institutions agree to loan customers from 18 years of age . If only the client has income, the bank will certainly agree to obtain a relatively low loan. Unfortunately, initially banks give lower amounts, if they see that customers pay such obligations on time, then they are able to mobilize higher amounts . It is worth asking a credit advisor , where to ask for a loan. Not all banks have been lending to customers from 18 years of age. There are banks that will agree to grant loans only from the age of 21.
Youth loan, cost of credit, APRC
The most important thing in the process of applying for a loan is to carefully read the terms of the offer. The APR will be the best indicator of the loan terms. The indicator shows the cost of credit on an annual basis. The level of APRC offered by the bank usually ranges from 8% to even 20% on an annual basis. Especially in the case of loans for young people, loans can be more expensive. Banks do not trust the client, which is why they add higher commissions or additional insurance to secure repayment of liabilities.
Cash loan for young people
In order to get a cash loan, you will need to document your income with the bank . The client can present an income certificate obtained from the employer, or the last 3 transfers from the employer. To obtain a loan, one of two documents is certainly enough. If the customer is refused because of income that does not meet the bank’s requirements, it is worth seeking help from a loan broker . Specialists also offer loans based on statements , in which you will not need to provide income documents.
A loan with no history for young people
The main reason for refusing a cash loan is the reference to a lack of credit history . Banks do not trust customers with a blank card. The more important will be the conscious choice of the institution in which we are applying for a loan. Not all banks will agree to credit young customers without a credit history. If a young person is refused, it is good not to make more inquiries, to seek an experienced credit advisor.
If you have questions related to lending to young people, please contact us. Our advisers will try to diagnose the problem and obtain financing for a young person.