It is in the nature of things that families with children have greater financial needs than single people, because the youngsters cost money. However, banks are reluctant to lend to children because they fear primarily that parents may not be able to make enough money to repay the loan.
The loan with children and the problem with the credit rating
If you want to have a loan with children, you have to go through a check of your creditworthiness, which, however, turns out to be much more complicated than if you had no children because of the youngsters. Because the creditworthiness is calculated from the monthly net salary, from which the essential costs are deducted. If you only deduct your own costs, there is of course much more left than if you still have to subtract the money that a child needs to live. As a result, less of the salary remains in the till and thus the opportunities to have enough money for the monthly payments decrease.
The credit with children and the problem of working hours
The next problem is that both parents cannot work full-time with children and a partner may have to leave the job market for a few years to take care of the offspring. For this reason, the bank’s family can only present an income in the medium term over which the installments are to be paid. As a result of this, the rating of the credit rating drops again.
The loan with children: the possible solutions
In order to still be able to get a loan with children, there are various possible solutions: If possible, you can choose the loan so small that the bank agrees to grant it despite the poor credit rating. However, this sum is often not enough. In this case you should try to get a loan with children through a guarantee. The usual variant is that, for example, the grandparents sign a corresponding declaration that they will take over the loan if the actual borrowers are unable to pay it. Such a guarantee is usually sufficient for all banks to grant a corresponding loan.