If you want to apply for a loan despite a low salary, the bank or lender will do a similar calculation to that of medium and high salaries. Perhaps a higher percentage limit or a slightly higher loan amount compared to income will suffice.
The reason for this is that, contrary to popular belief, a low salary is not a risk factor for a loan. Quite the contrary: A look at our Swiss neighbors shows that the risk of debt increases from an annual household income of 50,000 dollars (around 40,490 USD) in contrast to lower incomes.
Anyone who wants to think about the loan despite the low salary can internalize this knowledge of the company intrum iustititia. So how do you go about making small amounts of credit?
Make a slight discount on the monthly surplus
Unfortunately, due to the remaining rent, electricity, gas and utilities and living expenses, the monthly household surplus is lower than that of large earners for many who have a low salary. Therefore, an unexpected repair of a household appliance also weighs considerably more.
If you want to apply for a loan despite a low salary and want it paid out, then you should always think of a certain safety discount on available income. Then nothing stands in the way of the loan and you don’t have to restrict yourself too much during the year.
Better credit rating than many other borrowers
Nevertheless, anyone who earns their money through work can confidently apply for a loan. In contrast to the particularly high level of youth unemployment, self-generated income is available, which in itself is a positive feature. The loan, despite its low salary, is therefore based on income that is above the seizure allowance.
If you then start the Internet comparison, you will see that many banks and lenders also issue smaller loans. This enables you to get a loan that is almost as cheap as it is for higher income. Most of the time, you do not have to use the overdraft facility, which is normally granted by the bank up to 3 times the net salary.