In Germany you are considered a child kingdom if there are more than two children. Few families have three children because they always cost a lot of money. Unfortunately, nowadays money decides whether a child is born or not. So only a few can afford a large family. But even these don’t always get by with the money they deserve. It is not uncommon to think about a loan with 3 children. The application is not as easy as many imagine.
Why are there problems with the application?
Many think that with three children they have enough money to apply for a loan with three children. However, it is often forgotten that child benefit does not count towards income. This cannot be attached and is therefore excluded as income. If only one parent earns the money, it may well be that there is not enough money to pay off a loan.
It’s paradoxical, but those who have little money and need it will find it harder than those who have enough money. A credit always means that debts are made that burden the household budget. Those who already have little money to pay for their lives will have even less to repay a loan.
Borrowing possible with 3 children
It is still possible to take out a loan with 3 children. All you have to do is know how to convince the bank. The key word here is always collateral. Without collateral, there is no loan. Anyone who has collateral will be able to increase their chances of applying for a loan. Income may not be high enough to pay off all fixed costs and installments. Therefore, it is always important to have collateral such as a guarantee, property or life insurance.
Perhaps there is someone in the family who would guarantee the loan. This must demonstrate a fixed income that is attachable and must have a clean Credit Bureau. Capital life insurance that has been running for many years can also be deposited with the bank as security. Banks also offer to take a property as collateral, but this should be avoided. If the loan installments can no longer be paid, the property becomes the property of the bank and in the end the family is left without a home.