If you need a loan during parental leave, you may be in trouble. Even if the parental allowance is theoretically an income, it is rated differently by the banks. This is mainly because the parental allowance is paid only for 12 months and it is usually not clear whether parents return to work after this time. For this reason, many banks reject a loan application during parental leave. After all, the parental allowance is counted as well as the receipt of unemployment benefits and other social benefits. However, if you have enough collateral or your partner has a high income, a loan is possible despite parental benefit.
Credit despite parental allowance – so you have success
Since house banks and “normal” credit institutions are critical of granting credit during parental leave, it is worth looking for alternative ways. Particularly popular are online banks, where you have much better chances of getting a loan despite parental leave. Especially with small loans, which have a maximum term of 12 months, hardly occur problems.
But loans for longer terms and larger sums are possible if you can prove appropriate collateral. However, many banks require you to prove that you have returned to your original job after parental leave. If you are a single parent and need credit during parental leave, it may be difficult. In this case, you have the opportunity to prove your credit rating through guarantors or other securities (eg real estate).
Credit despite parental benefit – this is how you find the best provider
Of course, before you take out a loan, you should compare the offers of different banks. Thanks to free online comparison calculators, it is possible to quickly and easily find a cheap loan. By applying on the Internet you save a lot of time and thus have the opportunity to take care of the really important things in life.