Credit for students: get fast and cheap student credit

Schoolgirl in need of credit for students, studying

You are a vocational student or a student in college and wonder if you can get a fast, flexible and cheap loan for students? The experienced and competent credit experts of KREDIT 123 can tell you: Yes, even a student loan is basically possible, provided that certain conditions can be met by you!

Of course, as a student you will not yet have too high a regular income, so loans with very large sums without co-applicants or guarantors should certainly not yet be in it for you. Freely available small loans, on the other hand, are anything but unrealistic or even utopian!

So if you're a student looking to buy a new iPhone, new designer clothes, or a roadworthy scooter, you should read this detailed post thoroughly. Because we give you here important information, tips and advice that you need to be able to get as a student to a fast as well as cheap student credit!

Distinction between student loan and education loan

At this point we would like to point out that for us a student loan is fundamentally different from an educational loan. While from our point of view a student loan is simply a loan for students and can have the most diverse purposes, an education loan is earmarked and by definition education-related. A student loan is therefore only also an education loan if a student takes out a loan for his or her educational career.

Credit for students from German banks and commercial credit institutions

If you as a student intend to take out a loan for students, you probably first think of borrowing through your house bank, where you also have a current account.

Contacting your contact person in the familiar branch of your bank is basically not a bad idea. However, before you start negotiating a loan, you should be aware of the requirements that must be met in order to obtain a bank loan in Germany as a student.

Requirements for taking out a student loan

  • Age of majority and full legal capacity
    To apply for a student loan in Germany, you must be of age and have full legal capacity. If you are still a minor at the time you wish to take out a loan, you can only apply for a student loan if your parents and the guardianship court responsible for you agree.
  • German bank account
    To take out a student loan, you must have a German bank account. Otherwise, the credit amount cannot be transferred to the same.
  • Official residence in Germany
    Your official residence must be in Germany, so that you can apply for a student loan. You can prove your residence with the help of your identity card or a certificate of registration.
  • Proof of income
    Of course, as a student you should also have an income that enables you to repay the monthly installments of the student loan. While vocational students and apprentices have a certain monthly training allowance, Realschuler or high school students need at least a 450 EUR job to be able to prove an income.
  • Credit rating
    Furthermore, it is a basic requirement that you are creditworthy and credit-capable. If there are data about you, which certify you a rather bad credit rating, it will be difficult to get without co-applicants or guarantors to a favorable loan for students.

You are of the opinion that you can meet all the requirements just mentioned for applying for a student loan? Then you should now also look at the criteria that German banks and commercial credit institutions examine in detail in their credit scoring procedures.

Examination of the concrete income situation of the applying pupil / occupation pupil

You have just read that it is a prerequisite to have your own income if you want to apply for a student loan without a co-applicant and without a guarantor. If you can prove a monthly income, either because you are a vocational student and receive a training allowance, or because you are a mini-jobber and therefore have 450 EUR gross per month at your disposal, the bank will of course take a closer look at the submitted documents in order to get an idea of your concrete income situation.

The salary of a student or trainee is usually not particularly lavish, which is why loans with huge sums and very long terms are naturally out of the question. However, small loans for students are approved by German banks and commercial credit institutions – as long as the default risk of the bank is not considered too high! The expenses of a student are usually manageable, especially if he still lives at home with parents!

Obtaining a SCHUFA report to check the SCHUFA records of the applicant

A very important criterion that German banks and commercial credit institutions examine is your SCHUFA score, which is based on the data deposited with the German credit agency SCHUFA about your person. If you have negative SCHUFA entries, you also have a low SCHUFA score, which in turn means that you do not have a high credit rating.

In order to be able to get a flexible and favorable student loan, you need a SCHUFA score as high as possible and thus a credit rating as high as possible. Before applying for a student loan, it makes sense to request a free SCHUFA self-assessment in order to be able to check one's own entries. It is not uncommon for incorrect or outdated SCHUFA entries to worsen your value. These entries you can of course delete to increase your chances of getting a cheap loan for students!

Check for personal and/or material loan collateral

Especially interesting for apprentices, trainees, low-income earners, students and pupils is the fact that German banks and commercial credit institutions thoroughly check both personal and material loan collateral that you could provide. Even with a moderate income situation and despite negative SCHUFA entries you could get a fast and cheap student loan, provided that you can secure the loan to a high or even full extent!

Personal loan collateral

Personal loan collateral is collateralization options that are provided through individuals or. people take place. On the one hand, the addition of a second borrower, and on the other hand, the registration of a guarantee. In general, both options are very effective ways for students to obtain a flexible student loan!

Addition of a second borrower

When adding a second borrower, a so-called joint loan is applied for together with another co-applicant. The co-applicant, like the main applicant, is obliged to repay the installments of the loan. The higher the income and creditworthiness of the co-applicant, the more likely it is that a favorable student loan will be approved, even if the main applicant only has a very low income and a low credit rating.

Registration of a guarantee

The registration of a guarantee is also very popular with German banks and commercial credit institutions and is often even required of low-income earners, trainees and students!

In the case of a surety, a guarantor steps in if the borrower can no longer repay the installments. In contrast to a co-applicant, a guarantor is not a direct contractual partner with the lending institution, but a third party.

Registration of a conditional guarantee

What many applicants often do not take into account is that a guarantee can usually also be entered with reservations. The addition of "subject to reservation" means that the registered guarantor does not actually have to step into the breach until the moment when all of the borrower's assets have already had to be pledged. In other words, the guarantor only has to pay when the borrower really has nothing left!

The possibility of registering a conditional guarantee is often a good argument to persuade a still hesitant guarantor to sign quickly after all!

Material loan collateral

While with personal loan collateral the loan for students is secured by people, it is secured with tangible loan collateral by things or assets. Assets secured. In general, the material loan collateral includes the land charge, the mortgage and the pledge of assets and values such as vehicles, jewelry, furniture, stocks, securities, life insurance and Co.

Since students very rarely own real estate and/or land, mortgages and land charges, in which the lender is granted a lien on real estate or land, are generally not applicable. However, students may well own assets that could be suitable as tangible loan collateral to adequately secure the student loan to be taken out.

Since both personal and material loan collateral are very good means of securing a student loan and thus reducing the default risk of the lending institution to a minimum, students looking for a fast, flexible and inexpensive student loan should carefully examine all their collateral options – and do so before entering into loan negotiations!

Credit for students without SCHUFA from Swiss or Liechtenstein credit institutions

Pupils, who have a certain income, however also negative SCHUFA entries to complain have, ask themselves not rarely whether it is not possible to request a credit for pupils without SCHUFA with a Swiss or also Liechtensteiner bank.

In principle, it is quite possible to apply for a loan without SCHUFA, where neither a SCHUFA report is obtained nor a SCHUFA entry is made. However, since the average minimum income limit at Swiss banks is approx. 1.200 EUR, applying for a "Swiss loan" (synonym for "loan without SCHUFA") is rather not an alternative for students! And if a personal loan security must be provided due to a too low income, then it is generally better if this is done in Germany, not abroad!

Loan for students from private

While the SCHUFA-free loan from Switzerland for students, apprentices and trainees rather not a good alternative, the loan for students from private is quite an option to get a student loan. On the one hand, family members and friends can act as private lenders, on the other hand, it is possible to borrow money from unknown private lenders by using special online platforms.

Student loan from family members or friends

By far the best and most favorable loan for students is generally the loan issued by family members, close acquaintances or friends. Here are pleasingly favorable interest rates and often even interest-free loans for students in it!

With the pupil credit from the circle of acquaintances one should examine however exactly whether one does not fall into a tax trap. Because interest-free loans could be evaluated by the tax office also as donation. And if the loan amount is above the gift allowance, there may be. Gift taxes to pay!

Loan for students from unknown private lenders

While the student loan from the circle of acquaintances is considered very favorable, the loan for students from unknown private lenders is admittedly somewhat more cost-intensive. Nevertheless, this special type of loan can be quite interesting, provided that the student seeking credit would otherwise have no possibility of obtaining a student loan!

Checking the amount of the annual percentage rate of charge

Students who want to take out a loan from an unknown private lender should not neglect to carefully check the amount of the APR and the installments to be repaid. Here, of course, you should also ask yourself the question of whether the loan must actually be taken out. Or whether it would not be better to simply save up!

Check all other conditions

Furthermore, it is not unimportant to examine all the important conditions that are in the loan agreement. Often the devil is in the details. For example, you should look into the following questions: Is there an option for unscheduled repayment? Do I have the right to withdraw from the credit agreement? Are essential consumer protection rights curtailed by the loan agreement?

Since there are unfortunately also black sheep and dubious loan sharks in the granting of loans from private sources, one should exercise the greatest caution here!

Check the brokerage fees to be paid to the online portal used

Last but not least, you should note that in the case of a loan for students that is brokered by an online portal and provided by unknown private lenders, brokerage fees are usually payable to the online portal used in this case. The amount of the same is of course also to be checked!

Purposes of student loans

Since we make a clear distinction between student loans and education loans, a student loan can be used for a wide variety of purposes, as long as the loan taken out is also a freely available consumer loan for students. If, on the other hand, the student loan is an earmarked loan, it may only be used for the contractually stipulated purpose.

A car loan or used car loan for students may therefore only be used for the purchase of a specific vehicle. By analogy, an education loan may only be used for educational purposes, as already described under "Distinction between student loans and education loans".

Mini-credit or. Small loan for pupils

A subtype of the consumer loan for students is the freely available mini loan or. Small loan for students. This has a relatively short term and a small loan amount of maximum 10.000 EUR. The small loan is the most common among students. Common are loan amounts in the range 500 – 1.000 EUR.

Since the small loan for students is usually approved and paid very quickly or even immediately, it is also popularly known as lightning loan, express loan, express loan or instant loan for students.

Used car loan / car loan for students

Depending upon income situation and collateral possibilities vocational pupils, apprentices and also pupils in the college stage can themselves at a used car loan and/or a small loan for pupils. Getting a car loan. Who takes out such a loan, however, should know that it is earmarked and may only be used for the purchase of a specific vehicle.

If you are a student who can meet all the requirements to obtain a loan with a sufficiently high credit amount for the purchase of a used car or car, you should definitely look for a used car loan or car loan for students, since the interest rates of the same are usually much more favorable than those of a consumer loan for students!

Educational loan

Education loans, which are granted to students by savings banks or the Kreditanstalt fur Wiederaufbau (KfW), for example, are also earmarked and may only be used for education-related expenses. The federal government's education loan program is very interesting for students, whereby the corresponding education loan is also granted via the KfW (Reconstruction Loan Corporation).

BAfoG for students (state education loan for students)

The government education loan for students is called BAfoG. Students can apply for this education loan, provided that the relevant requirements are met, through the offices of education funding.

Conclusion of KREDIT 123 to the topic credit for pupils

Can vocational students, apprentices or students in college also access a freely available loan for students? – Yes, a flexible, fast and cheap student loan is generally possible, provided that the applicant has a sufficiently high income as well as a good credit rating and / or can partially or even fully secure the loan with the help of personal or tangible loan collateral. It is a fairy tale that pupils would have no chance at all to get a credit!

In principle, the application for a student loan at German banks, commercial credit institutions or private lenders is possible and also interesting. The SCHUFA-free loan for students from Switzerland is not included in our list now, because the minimum income limit for taking out a Swiss loan on average at about 1.200 EUR lies.

Certainly the most favorable and flexible loan for students is the one granted by family members or close acquaintances. Much more cost-intensive is the student loan from unknown private lenders, which can still be interesting, however, if it is not possible to get a loan for students through the other channels. The conditions are to be examined here however thoroughly!

Those who absolutely need an education loan or an education loan should contact government institutions, which can advise the loan seeker on the most important funding programs. The most important programs include, for example, the federal government's education loan program and the BAfoG state education loan.

Written credit contract as an important basis of every credit transaction

Anyone who wants to take out a loan as a student should always make sure that the loan transaction is based on a professional written loan agreement that regulates all important conditions and contract contents clearly, unambiguously and by mutual agreement. This eliminates ambiguities and later misunderstandings from the start. A written loan agreement is also important in order to avoid dubious loan sharks!

Comparison of different credit offers for students

Last but not least, it is highly recommended to carry out a detailed loan comparison, in which several different loan offers for students can be compared with each other and put through their paces. This is the only way for a student to take out the really best and cheapest student loan! KREDIT 123 finds: Whoever fails to make a detailed loan comparison, makes a big and often very expensive mistake!

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