Would you like to take out a loan after training? There are good reasons for this. Nevertheless, it is not easy for every career starter to find the right loan offer.
We support you with authentic information in your loan search. You get an overview of which loan offers are waiting for you and which requirements credit institutions are demanding from borrowers.
Credit after training – situation
With a credit after the apprenticeship many wishes can be realized, which nobody dared to dream about during the apprenticeship. A vacation to distant countries would finally be financially realistic. Of course, practical ideas, such as the purchase of a new, reliable vehicle, will predominate. It is not uncommon for young people to dream of their first own apartment.
Moving out of the “Hotel Mama” automatically leads to a rent deposit, renovation of the first rental apartment and furnishing requests. The kitchen is often the focus of funding intentions. It should be taken over by the previous tenant. It is not uncommon for “the constraint of circumstances” to be behind the credit request. Those who are not taken on by the training company are looking for a career start in the wider area.
Access to the credit after training for the new apartment or the reliable vehicle could increase to the existential credit wish. The new boss can simply expect his employee to show up for work on time and well rested. This is not always possible with public transport. At this point, unfortunately, the first credit hurdles lurk for every career starter.
Credit hurdles for young professionals
All banks are happy to grant loans at low interest rates if the borrower has sufficient creditworthiness to lend. Unfortunately, good creditworthiness for lending is not only based on a clean schedule, but a very important factor is income from work and job security. Borrowing to start a new job far away is made difficult by the lack of preconditions for secure lending.
Anyone who starts a new job starts with a trial period. – Incidentally, this can also be the case if the former teacher takes over his trainee. No protection against dismissal applies during the trial period. From one day to the next, both sides could terminate the employment relationship, even without giving a reason. Security for lending cannot be derived from such an employment relationship.
Even if the probationary period has been successfully passed, there are obstacles to the credit after the training. If the trial period ends in a temporary employment contract, most banks react very distantly to requests for an installment loan. Due to the time limit, a safe job can only be assumed for a limited time. What happens to the employment relationship after the end of the temporary contract remains open.
After completing the apprenticeship, a regular starting salary contrasts with a large number of incalculable risks. The security of the lent capital must always be a top priority for regular loan approvals. Unsafe good income does not qualify for lending.
The bottom line is that career starters face a multitude of problems that are difficult to solve on their own with their desire for a loan after their training. Personal creditworthiness only increases over time due to growing income security.
Problem Solving – Career Entry Credit
One way surely leads to regular credit after training. Banks allow poor creditworthiness to be compensated with additional collateral through low income or an insecure employment relationship. Security would be conceivable, like a paid house. But from the perspective of a career starter, collateral for securing loans is rather utopian. It would be very easy to apply for the loan together with a solvent co-applicant.
The good credit rating of the second creditor meets the requirements for regular credit. The risk from lending would therefore be normal for the bank. In principle, the bank does not care who actually repays the approved loan. It is only important that the installment payments are made on the agreed date and in the agreed amount. The bank will only apply to both creditors in the event of difficulties.
Co-applicants or guarantors and the actual borrower are fully liable for the loan granted. You are also liable for all costs due to late payment. Against this background, every loan after training with guarantors should be well thought out. It takes longer to develop a good personal credit rating. Destroying them is a thoughtless delay in payment.
Special routes – independently creditworthy
When it comes to installment loans, the bank’s clerk is often tied. His personal decision-making competence is severely limited by guidelines. The situation is different if smaller amounts of credit are requested via the classic short-term loan. The new car would have to wait, but a set of new tires on credit and a technical check-up would be possible.
It would also be conceivable to apply for a credit card. Proof of creditworthiness can be easily achieved at the latest after the trial period. Depending on the amount of income, a credit line of up to 5,000 USD would not be unusual. Both options are of course not an optimal solution, as a loan after training. Independent loan liability is paid through very high interest rates.
Fair independent credit opportunities and fair interest rates would be compatible if a private loan were applied for instead of a bank loan. For example, private investors could be contacted via Smava at a serious level for a loan after training. The advantage over bank credit is that private lenders often take more risk-taking decisions than commercial lenders.