Loans for young people
Financing your first apartment, your first car, or even just your driver’s license can be difficult without parental help, which is why cheap loans for young people are being taken up more and more frequently to ensure a smooth and easy start into adulthood. Loans are available to young people from the age of 18, since they also have full legal capacity in Germany on their 18th birthday.
Henceforth, you are free to conclude contracts and business transactions, such as a loan agreement with a bank. Of course, you should invest the money from the loan as sensibly as possible, because getting into debt as a young adult should be avoided in any case. If you are still in an apprenticeship or a course of study, your own income is often very low despite the subsidy. Repayment of a loan can be difficult under certain circumstances if you do not want to work several additional jobs as a young adult.
Therefore, the loan should generally be compared beforehand in order to find cheap loans for young people and to get a direct overview of the different market conditions. This helps to keep the cost of the loan as low as possible and at the same time provides an overview of the monthly installments, the amount of which should be known in advance. Only then can you draw up a reliable budget plan that guarantees the timely, punctual and regular repayment of the installments.
Financing for every purpose
Nowadays, cheap loans for young people can be applied for or taken up directly on the Internet with just a few mouse clicks. Direct bank loans usually have better terms than loans from a major or house bank, as these lenders have lower running costs due to staff and branch savings. This fact is passed on indirectly to the borrower if the borrower can borrow at a reduced interest rate.
The prerequisite for this is, of course, always a sufficient creditworthiness, which is also an essential factor for cheap loans for young people. Creditworthiness is largely determined by income, which is why young people rarely actually hold a creditworthiness that is considered sufficient. Then the young adults have to provide further collateral to the lender, whereby in this phase of life the guarantee is usually the only possible security.
Relatives or very good friends, but usually the parents or grandparents, act as guarantors for the bank. You therefore vouch for the debt that the borrower has incurred and undertake to fully pay it in the event of a default. For this reason, only very close confidants can be considered for a guarantee, since this obligation represents a high financial risk, which is not to be taken lightly even with a regular income.