Credit opportunities, of course, are there for seniors. The pension is a secure income. However, it becomes problematic with the amount of pensions and in the increasingly advanced age. Possible solutions to credit problems will be examined in more detail in the course of the article.
Loan for pensioners – possible problems
Not every pensioner is equally creditworthy. Unlike pensions, pensions are often less than the garnishment exemption limits. The average pension in the west is just above this limit in the east, just below it. As with any professional, the loan can only be granted to retirees if there is sufficient income. The income must cover current living expenses and still leave scope for the repayment of the installment.
The precise determination of the limit lies within the bank’s business policy. As a rule, it requires a net pension of around USD 1,000. Internet banks are somewhat more flexible with this lower limit. Without having to put up with interest surcharges, most providers expect a pension of at least USD 980. This amount corresponds to the normal garnishment exemption limit. Another problem can be the age for the loan approval. There is no uniform age limit. Nevertheless, at around 70 years of age, there is hardly any provider willing to take the age risk.
Pensioner loan provider
The pensioner loan can come from different providers. In the younger years, well below the age limit, it is mostly the house bank that grants the loan. As with any loan, the possible loan amounts depend on the income situation and the collateral. Comprehensive real estate financing, but this can almost always be ruled out completely. Long-term financing and high loan amounts are rejected by most banks at around the age of 50.
That’s how many loan offers you get
Shifting the age limits, adjusting them to actual life expectancy, is only possible through specialist providers. Some online providers advertise with the credit without an age limit. It can be a potential problem for these offers if credit insurance is a prerequisite for lending. The insurance risk increases in old age. The residual debt insurance is extremely expensive.
Escaping an impending credit crunch
If a pensioner cannot meet the desired conditions for a bank loan, there are still other ways out. He could try to apply for a loan for retirees from private donors. Two large portals for personal loans have specialized in helping in difficult credit situations. Pensioners are considered safe payers, even if they have a low income. If only a household appliance is to be replaced, mail order loans are usually open to old age.
If all attempts remain unsuccessful, only the younger generation can help. They apply for the loan on behalf of the parents or grandparents. The retirees are spared interest premiums and rejections when looking for the loan for pensioners.