Trainees earn a regular but low income. This is actually not enough for borrowing, so most trainees apply for a loan with their parents as guarantors. However, the prerequisite for any loan application is that the trainee is of legal age, because minors are not allowed to conclude credit contracts, even with parental consent. Under what circumstances can they take out a loan without a guarantor during vocational training?
Small loans for trainees without guarantors
Many banks grant loans to trainees without a guarantor by giving them a credit line for the current account as soon as the trainee reaches the age of majority. Credit card issuers also grant trainees a small budget of mostly one thousand USD. Borrowing through the overdraft facility or the credit card account’s credit line only makes sense for a manageable period due to the high interest rates.
For installment purchases, mail order companies usually make installment purchases without requiring proof of earnings. However, some mail order companies do not approve the installment purchase for young customers when they first order. If this precaution is known, it can be easily circumvented by buying a cheap product as a first order from the relevant retailer.
Income and expenses of the trainee
If trainees live with their parents during their apprenticeship, many of the otherwise usual expenses are not incurred, so that they have the entire income available to repay the loan. Due to their automated processing of loan applications, online banks are usually unable to take this feature into account, while the trainee draws attention to this during a personal loan interview in the bank branch.
Parents make it possible for trainees to be granted loans without a guarantee by providing their children with a certificate stating that they can fully retain their training allowance themselves. Such a letter serves the bank as confirmation that it does not have to charge rental costs and no ordinary living expenses in the household account.
If the trainee does not live with his parents during the apprenticeship and they support him, they certify the monthly allowances, which the bank credits accordingly as income.
Loan without proof of income and personal loans
There is a great temptation to take out loans for trainees without a guarantor via an instant loan without proof of salary. However, such a loan would only be paid out if the income was incorrectly stated, which would result in the trainee committing a crime. This behavior would only be discovered and punished if the trainee did not repay the loan as agreed, which can easily occur given the low training allowance.
It is better to take out a loan through a private loan brokerage website. The private lenders registered there are preferably based on the personal situation of an applicant and grant loans to trainees without guarantors if they are convinced of the purpose of the loan requested by the apprentice.