Lending to single parents – collateral and guarantors
It is at the discretion of each bank whether a loan is granted to the single mother or the father. For this purpose, the general credit requirements such as legal age, income relationships and creditworthiness are carefully examined. If the income is very low, for example, it can be checked whether collateral, such as property, exists. Alternatively, a third party guarantee for the borrower’s credit obligations is one way to obtain the single parent loan. If both options are out of the question, lending is generally not possible. If a loan is approved, it is often a small loan, up to a maximum of 5,000 USD.
Credit rating information
In order to get an idea of the creditworthiness of the borrower, various aspects are checked by banks and credit institutions. In addition to income and collateral, queries, for example at private credit checker, about current loans, payment behavior and payment behavior are the order of the day. A loan for a single father with poor creditworthiness is therefore out of the question.
There are also credit providers on the Internet who offer credit for single parents without private credit checker, but this does not necessarily mean that no credit check is carried out, because private credit checker is only one of numerous service providers in the credit protection segment. Online loans without a credit check should be treated with caution anyway, because they often show high interest rates and gag conditions.
Personal loan for single parents
Borrowing money from private individuals who are unknown to you has developed into a separate market segment in recent years. Online platforms like trucredit bring together private borrowers and private lenders. By involving several private investors in a loan project, larger sums can also be realized more easily. The interest rate for the installment loan is relatively free.
But it is not quite as simple as it sounds, because the borrower must describe his or her loan request in detail and the creditworthiness is not left out even with a personal loan. If he can present his loan request in a credible, reputable and convincing manner, the chances that private donors will be found increase. In any case, this variant represents an option through which the loan for single parents can be realized.