Who does not know that? Washing machine broken, car in the repair and the last bills are not yet paid. A credit must be forth and that, although the own income monthly amounts to only 400 USD.
Is lending possible?
In principle, most banks do not issue loans with 400 USD income. Because who takes a loan, which must ensure that he can afford the regular installments. In addition, the monthly income is considered.
It is important whether the income is achieved through an insurable job. For a minor employment this condition is not given. This does not mean insurance cover, for example, for unemployment or longer illness. The default risk increases.
Ways to get a loan
But that is no reason to despair. Not all banks reject the applicant on a flat-rate basis. In some cases, you have collateral, such as securities. These will be overwritten in the event of non-payment of the bank’s credit.
Another way to get a $ 400 loan is to hire a guarantor. This may be the partner, the sister, or another person of trust, provided that the guarantor agrees to the credit and credit check, as it is liable in the event of a default.
But even without a guarantor you still have a chance to get a loan with 400 USD income. If several minor occupations are pursued, the bank can check by budget whether lending is possible. Here, the revenue is compared to the expenses. If the conclusion is positive, a credit institution can grant the loan.
Important here: answer all questions absolutely honest. An unredeemed loan can have a negative credit rating in the long term.
Credit line and term
Anyone who convinces the bank of its creditworthiness and also has a positive Credit bureau information, can expect a sum of up to about 1000 USD.
However, the interest charge for the loan is then usually higher, since the default risk for a loan with 400 USD income is also higher due to the lack of compulsory insurance. In addition, the terms of the loan will not go beyond 36 months.