During your traineeship, your cash flow is more likely to be low than high. Many expenses are coming up and the income is rather modest in extent. Maybe you feel the same way and you are thinking about taking out a loan. An idea, which must be well thought out, but thoroughly works. If you know exactly what financial needs you have, how to secure the loan and how you manage repayment. We would like to explain all this and much more to you in more detail here.
- What do you need a loan for during your traineeship??
- Trainees do not always have it easy with loans
- What loans are available for trainee teachers?
- Where can you get a loan as a trainee teacher?
- Differences between banks
- What about the civil servant loan?
- Conclusion& Checklist
What is a loan needed for during the traineeship??
A loan is not needed as seldom as one might think. Because there are always situations in life in which the savings are not enough and where liquidity must be quickly established. Loans are not only used to finance new purchases such as a car or the furnishing of an apartment. In many cases, they also serve to secure your livelihood. Possible examples for taking out a loan are:
- Purchase of a vehicle
- Rent deposit
- Furnishing an apartment
- Relocation costs
- Stay abroad during your studies
- Private financing of further education
- Debt settlement
This list could be extended at will. However, it is only intended to show that a loan can also be taken out at any time during the traineeship and beyond. You decide whether you need a loan and to what extent it is actually necessary.
Trainees don't always have it easy when it comes to loans
Maybe you have already tried to apply for a loan yourself because you needed money quickly. Then you have probably already noticed that legal trainees are not particularly happy to be served by banks with a loan. It's not because you're a trainee lawyer. It is rather due to the fact that your income is not yet too high and that you are still in training. No one knows if you will complete your studies and pass the second state examination. Whether you really want to work as a teacher afterwards and how much you will earn then.
The fact that loans are not so readily granted to student teachers is not a unique selling point. It can also be found in all other industries. As a trainee it is always difficult to find a loan. No matter whether you are a bricklayer, an insurance salesman or a car salesman. Loans during the education phase are difficult, but can be implemented if the conditions are good.
If you are already a civil servant, things look a little different. Then the banks know that you have a secure job and this hurdle is at least already taken. Your income plays a role in the application for the loan but despite everything still a role. And also the expenses that are incurred monthly and the entries that are deposited in the Schufa.
What loans are available for trainees?
If the personal requirements and the creditworthiness fit, you can take out any loan as a trainee lawyer. So in any case the theory. In practice, of course, it looks a little different, because the conditions are usually not so rosy and thus the creditworthiness is not quite so high. You can always counteract this if you have a solvent second applicant or a guarantor.
The classic loan requested by trainees is the normal installment loan with a free use. Here you can freely determine the loan amount and also freely decide what the money should be used for. You are not obliged to provide information to the lender. Other loans include:
- Instant loan
- Car loan
- Furnishing loan
- Real estate credit
- Framework loan
- Online credit
- Civil servant loan
- Student loan
- Personal loan
Where can you get a loan as a trainee teacher?
More than 2.000 banks in Germany are happy to provide a loan if you have a good credit rating. In addition, there are private lenders, credit intermediaries and providers such as AUXMoney. A special provider where private investors provide the money for the loan. This variant of borrowing can be interesting for you if you can not resort to a regular credit offer due to various restrictions.
The choice of suitable lenders is therefore immense and hard to oversee. Even if you use a loan calculator, you still have no concrete information about the loan offer and do not know whether you can really help the selected lender. Please feel free to contact us so that we can find the best loan provider for you.
Differences between banks
Every bank and also every other lender advertises that they have the cheapest loan for you. And if you look at the offer once, then you see that most offers at first glance are really very cheap. Especially with the interest, the lenders try to score, because the borrower classifies this as the most important criterion.
But of course, the advertising is not the norm, and the offers may not apply directly to you either. Each loan is always based on the creditworthiness and thus the credit rating of the borrower. This also applies to you as a trainee teacher. The better your credit rating, the better the credit offer.
Your task is therefore to recognize the differences in the respective banks and offers. Possible differences can be the following:
- Amount of the possible loan sum
- Special repayments
- Installment break
- Early redemption of the loan
- Possibility of free debt rescheduling
- Collateral that must be deposited for the loan
- Start of repayment
- Possible fees
You, as a trainee lawyer, must therefore be very specific if you want to take out a loan. Because your chance to get the loan is somewhat limited, you should work with a guarantor at best. This improves the chances and you have the opportunity to filter out your suitable loan offer from several offers.
What is the situation with the civil servant loan?
Although the civil servant loan has not been the best solution for borrowing for a long time, it is still on everyone's lips. This is due to the fact that for many years it had a very high status and was considered the non-plus-ultra in lending for civil servants and employees in the public sector. The civil servant loan was especially cheap, had special conditions and was a super complement to the civil servant loan. The civil servant loan, unlike the loan, is based on insurance, which can be found in the field of life insurance or pension insurance and is used as a basis. The civil servant loan itself is a classic loan, which is now only offered by a few banks and savings banks.
Since it is now possible to adapt each loan individually to the borrower, the traditional civil servant loan has lost its appeal. On the one hand, it is still advertised by very few lenders. On the other hand, if you have a good credit rating, you can use any loan and each loan will be customized for you. You can also take advantage of the benefits of civil servant status or employment in the public sector with a classic installment loan without a purpose. you do not lose good conditions, they are always taken into account. This is a great advantage, as you can take advantage of a much larger selection of loan offers and are not limited to a small number.
In the clerkship you should first get a current account as well as a call money account. This way you can manage your salary well and at the same time create a small nest egg for sudden expenses. Look out for free offers (especially for trainee lawyers) such as a new customer bonus of up to 100 euros and good (additional) benefits.
If you have any questions or need support, please do not hesitate to contact us. We will be happy to advise you and give you helpful tips on choosing the right account – but also on all other financial topics.