If you want to apply for a loan, you must meet all the requirements of the lending bank. This is also mandatory for a loan with child support. In addition to the formal requirements, which regularly consist of reaching the age of eighteen, having a regular residence in Germany and having been employed by the same employer for at least six months, the bank continues to assess whether regular personal income is sufficient to meet all its own obligations – and also those that exist against others – to serve.
After all deductions, which the Bank determines in part on the basis of averages / lump sums, the financial situation of the applicant must be such that the payment of the possible installments (including interest and other fees) is unproblematic and possible in the long term.
Assessment of the economic situation + credit bureau information
Added to this is the examination of the data transmitted by the credit bureau. These provide information on the past and assumed future payment behavior that results from the so-called scoring. On the basis of all this information available to the Bank, the application for the conclusion of a loan agreement – because it is based on the credit business – is accepted or rejected. With a negative credit bureau information is usually a rejection, in many other borderline cases, the decision is at the discretion of the bank.
In case of previous rejection: clarify the reasons
If a loan has already been rejected in advance, it makes sense to investigate the possible causes. Since the banks do not justify a rejection of the loan application, you should first apply for a self-assessment with the credit bureau, this is available once a year for free. In this way, it can be estimated whether and to what extent this information stands in the way of the conclusion of a loan agreement or not. In addition, the self-assessment allows to review all entries and data and to request the deletion or correction of certain information.
For a new loan application: reduce loan amount
If the credit bureau information is not a hindrance, it may be that the amount of income and the desired loan amount are not proportional. Then it makes sense to reduce the loan amount and make another application. In any case, one should realistically assess one’s own economic performance. Cheap forecasts for the future or special economy are not relevant for the decision of the banks.
Consideration of child allowance for lending
A loan with child support is usually not possible. Although the child benefit is legally due to the parent with whom the child is staying on a regular basis, this amount is not considered by the banks as their own income. This also applies – even for years and regularly paid – child support. A loan with child support would be too risky for the banks: Children often change their whereabouts, as many marriages are divorced today, or cohabitation diverges.
If a child moves from mother to father, the eligibility for child benefits changes from one day to the next and the amount (or amounts) fall away on the other side: if the child allowance were required to repay the installments for the loan At this moment insolvency would occur and repayment of the loan would no longer be possible.