Need loan for single mother? A credit offer with small, fair rates and uncomplicated access?
It is not quite so simple in every case. Use the guide to work out your own credit opportunities.
Check – without any risk – which credit bank will grant you a loan and under which conditions.
Loans for single mothers – problem definition
As a single mother you have to master a difficult balancing act every day. You are on your own and have to make sure everything runs smoothly.
On top of that, you alone are responsible for providing sufficient financial security. This is only possible if you manage to balance family and career.
Unfortunately, the income as a single earner is not in harmony with the financial needs of a whole family. A loan for single mother could facilitate many things.
While the needs list is very individual, it is always very long. It starts with the ready-to-use family car on credit, which ultimately secures the job and saves time.
The list ends at "perceived mundanities," such as a small loan for a vacation with kids. The problem for many mothers is to prove sufficient income for the loan.
This means that the risk of an unsecured loan is too high for the bank. In many cases, credit institutions even "flatly" reject any unsecured loan for single mothers.
Credit for single mother – why hard to get?
For the banks it concerns with the granting of credit always only one thing, around the credit security. All banks and insurance companies are even legally obliged to do this when granting loans.
A debtor, from whom nothing can be collected in the short, medium and long term, therefore inevitably falls through the grid of the credit check. To "fill up" the proof of income with child benefit, parental allowance, housing benefit or similar statistical benefits does not lead to success.
The social benefits of the state are unseizable and thus ineffective for securing credit. Credit for single mother is possible without any problems, if the good Schufa and a sufficient income secure the loan.
In the majority, single mom and single dad are not blessed with good incomes. The score is not that great either, that's why there are difficulties.
Around the proof of the safe credit nobody comes with the bank credit around.
Tip:
For almost every problem there is a possible solution. Ask why if there are any difficulties with your loan application.
Main reasons for difficulties – briefly summarized
- Low income, lack of garnishability of earned income
- Too little household surplus, income and expenses are not in balance
- possibly too high old debts (divorce costs, etc.).)
- Negative Schufa (poor payment record for personal reasons)
Ultimately, everything revolves around the income of the mother. Only if the income is good, she can actually afford her loan for a single mother.
Interaction – income and creditworthiness
If you look at income, you always look at the creditworthiness of the prospective borrower. And if creditworthiness isn't enough, borrowing is at risk.
With a weak income, the creditworthiness automatically decreases from the point of view of the credit institutions. If you are interested in a loan for a single mother, you have a responsibility to secure the loan.
With single parents with problems with the credit approval are usually no valuable material collateral available. Loan for single mother with the paid house as collateral, is therefore rather the exception.
Better chances of real credit security exists in the loan with a guarantor or together with a second borrower. As a guarantor or second applicant any adult comes into question, provided he is solvent.
Solvent means that the bank could easily approve the desired loan to this person alone. This requirement must finally be met, because if the borrower does not pay, the second liable party is liable to pay.
Interim Bottom Line:
Some compensation for missing income creates the state through aid money. The only problem is, the social benefits are unseizable and therefore do not count in the credit rating.
Risk – credit for single mother
Banks and savings banks are very cautious. They check carefully before giving credit for single mother.
It has nothing to do with your person. It's more about what personal situation you are in.
Even if you are currently working full time, lenders act with foresight and caution. Your personal risk of losing your job is higher than for a single person or couple.
Just imagine for a moment that your child has an accident. Everything turns out well in the long run, but one of your younger children has to go to the hospital for a long time.
Times honestly, what do you want to make? Only going three times a week after work, after all, the other kids and the household need you too?
From a moral point of view, you have no choice. You quit the job, take unpaid or drastically reduce your hours.
No employer looks at this for long, because profitability suffers when employees have private problems. In the end you are unemployed.
Such a scenario may not apply to everyone, but the risk simply exists. Any risk makes credit more expensive, calls for additional collateral or leads to credit rejection.
Securing credit additionally – options in detail
Loan for single mother is easiest to take out with a guarantor. Maybe you have the opportunity to find such a guarantor within your family.
Often these are the parents of the single mother who are happy to help. Or your siblings, likewise good friends or close relatives may act as guarantors.
When choosing your guarantor, you must take into account that you have a good contact with your guarantor. A guarantee is always a matter of trust.
To be able to build trust, there must be a good contact. Also make sure that the guarantor can afford to pay back the loan in case of emergency.
If you don't repay the single mother loan because you've defaulted, the guarantor has to take over that loan debt.
Approach only solvent guarantors. People who are aware of the risk from the commitment.
People who are financially stable and do not get off track by the eventual payment obligation itself.
If you have a guarantor, then the guarantor does the following:
- Improves your credit rating
- Enables borrowing
- Secures the loan without the need for you to take out a residual debt insurance
- supports you in an emergency with the repayment
- You have a contact person who is always there for you in case of need
- You have a trusted person on your side
- For your part, you are under an obligation not to betray the trust
Online or bank branch – apply for a difficult loan
You have of course the free choice where to apply for their loan for single mother. However, the most convenient is online.
Online you have the opportunity to compare different offers with each other. You do not have to go from bank to bank or look on every website.
You simply use a free comparison calculator. Here on this portal we go one step further towards you.
We do not want you to "fish in the dark" unnecessarily. That is why we ask you to make a non-binding application before comparing loans.
Your application is exclusively for the purpose of checking your loan for single mother in advance. Your (hopefully) subsequent loan approval, based on individual offers.
So from the very beginning you compare the interest rates that are approvable for you. In addition, in the comparison you will see only those lenders who are willing to grant you credit.
Tip for borrowing
Once again in all clarity, your application commits you to nothing. Only make a condition request to the banks that are eligible for your loan request.
Only in a second step you decide "if" and if so, "which" loan offer you apply for bindingly.
What loan amounts are possible?
As you already know, the bank is not easy with the approval of credit for single mother. Your creditworthiness is usually assessed very critically by the examiner.
Therefore, you should not expect to be able to draw down a particularly large amount of credit. Therefore, think carefully about what you want to do with the loan and how much money you really need.
The smaller the loan amounts required, the more likely it is to find a suitable loan. Always keep in mind that you have to pay back the loan as well.
Therefore, pay attention not only to the loan amount, but also to the term and the monthly installments. Your installment amount must fit the budget surplus.
You must be able to safely make the payment. Loan for single mother must not escalate into a financial risk for you.
Do not only look at your current situation, but also think a little bit in the direction of the future. Depending on the term of the loan, many things can change in your life during the repayment period.
It is all the more important to keep the loan amount and the installments small. Small installments people continue to pay, according to experience, although it is financially tight.
Please do not only think about your own goals. Your guarantor will stand in for you if you default as a payer.
Taking out a loan for a single mother
Have analyzed the amount of the loan you need and know what purpose it makes sense to use it for? Now you can approach the search for a suitable loan offer.
It is then necessary to find a loan for single mother that really fits life. Also the guarantor must be available for it right from the start.
The guarantor must also submit their required documents for consideration. Just as it is the case with you as the applicant.
If you are looking for the loan through our portal, then in the best case we will submit several loan offers to you. You can choose one of the offers.
If you hold the binding commitment in your hands, you are already a big step closer to the loan. Because then it is only a matter of signing the contracts and waiting for the money to be paid out.
It takes about two to three days until the money is in the account. You can then dispose of it as you have planned it.
Tip
Should you plan a fixed use for the single mother loan, name the intended use. Earmarked loans, for example the car loan, often have lower interest rates.
Bottom line – single mother loan
This is best achieved when a guarantor accompanies the borrowing process. The solvent guarantor raises the credit rating to a higher level.
At the same time, the guarantor ensures that no payments are missed in the event of payment difficulties. A frank word should be enough so that the guarantor pays you installment before it comes to arrears.
Please do not disappoint your guarantor's confidence. Keep in mind, thanks to its creditworthiness, your loan for single mother is possible in the first place without any problems.