Under a private credit entry in the colloquial language is mainly understood an existing negative feature. Not every feature has the same effect on creditworthiness, especially since private credit distinguishes between hard and soft negatives. At the same time, the term refers to the announcement of a loan to the private credit.
This is always the case when a bank loan is granted, whereas installment credits granted by hypermarkets and mail order companies are generally not reported to the private credit. In the case of credit lines, private credit learns that they are being granted while it is unaware of the actual claim. People are unemployed if they work for less than fifteen hours per week and are both able to work and willing to work.
Which possibilities for a bank loan remain?
In commercial banks, a loan with private credit entry for the unemployed requires in principle the placement of a guarantor or a co-applicant. For small loan amounts, a small regional bank will have an exception if the loan applicant is personally known in the office. With regard to the financial standing of a guarantor, the bank must set stricter standards than a credit customer, so that the guarantee is legally secure. In addition, the guarantor must be able to assess the scope of his actions, to which the bank can contribute with appropriate instructions.
Anyone who has agreed on a call-off loan before the occurrence of unemployment or before forfeiting the private credit negative feature can continue to use it as a loan with private credit entry for the unemployed. An on-demand call-off loan is usually retained as long as the bank customer complies with the repayment agreement.
However, most banks reduce the disbursement credit granted directly to the checking account when the incoming payments decrease. If a loan with a private credit entry for the unemployed is offered in the advertisement, the prospective buyer pays attention to the conditions and applies for them only if he does not have to pay any pre-payment for the loan application processing. Such charges are not allowed.
Other options for borrowing
Especially for small loan amount to offer a loan with private credit entry for unemployed platforms for credit intermediation between individuals. The corresponding platforms allow borrowers with soft negative characteristics after a case-by-case assessment. In each individual case, the private lenders registered, who often orientate themselves to social criteria, decide on the concrete lending.
In contrast to customary private bank loans, the personal loan platforms require specification of the purpose for which a loan is requested. If borrowers need the money for urgently needed purchases, recipients of Hartz 4 benefits can apply for a loan with private credit entry for unemployed persons at the case manager. The Jobcenter grants a loan without interest calculation and settles the repayment in small increments with the future benefit payments.