The granting of installment loans for freelancers is often rejected by credit institutions because they do not have a fixed income due to the lack of an employer. This is associated with the frequently occurring prejudice that freelancers and the self-employed are unable to generate a constant income over a longer period of time. The reason for this is said to be the increased dependence on the overall economic situation. In addition, the income of a freelancer depends to a large extent on their own commitment and the payment behavior of their customers.
Tighter conditions for installment loans for freelancers
When direct or branch banks grant installment loans to freelancers, these loans are usually only granted under more stringent conditions. Of course, these guidelines include inquiries at the Credit bureau credit agency, where the customer’s creditworthiness is checked. If this has a negative Credit bureau entry, the lending can be refused without giving reasons. Credit institutions also require collateral or take out residual debt insurance, which can incur significant additional costs for the borrower.
Compare installment loans for freelancers
It is important that the future borrower compares the various loan offers in detail. This is the only way to check supposedly cheap offers in terms of their actual costs. In any case, one of the essential comparison criteria is the effective annual interest rate, which takes into account all costs associated with the installment loan for freelancers.
Ask for help
Another option for freelancers and the self-employed is to request the loan together with a partner. The latter should also have an excellent credit rating and, if possible, secure income and a permanent job. If payment defaults occur, the responsible credit institution can then draw on a total of two borrowers and demand that the outstanding debt be paid. This reduces the credit risk for the bank and the interest rate falls.
Credit Amount: USD Loan term: 1 month 2 months 3 months 6 months 12 months 24 Months 36 months 48 months 60 months 72 months 84 months 96 months 108 months 120 months Usage: Free use New cars / used cars Furniture Modernization / renovation vacation PC / Multimedia credit repayment Balance current account to compare