Is it possible to take out loan if you do not have a fixed income?

27 Nov

Although it can no doubt be more difficult to borrow a loan if you do not have a job, it is far from impossible.

Although you are usually asked to document your income when applying for a loan online, there are still a number of options for you if you are not in a permanent job. We have here gathered the most basic tips to help you get started.

The better the credit rating, the greater the chance of the application being approved

When you apply for a loan online or at the bank, you can count on the best offers and lowest interest rates being offered to customers who already have a good credit rating – and most often it means customers who have a permanent job. It is therefore not abnormal that both banks and providers on the net refuse to lend money to people who do not have a fixed income, as there is simply too much chance that the money will not be repaid.

That being said, there are, however, a number of providers who still mean offering smaller loans for those who may not need to borrow more than DKK 15,000. These types of loans are usually more expensive if you do not have a fixed job, But that does not mean that you should not compare loans now before you borrow, as it is important to bear in mind that far from all providers offer the same interest rates.

Take out a loan without a job

Today, fortunately, there are lots of different types of loans, and although you are currently without a job, it is not something that should keep you from applying for a loan. It is really enough that your application is not more likely to be accepted if you go down to the bank. Nowadays, however, it is no longer an absolute requirement to borrow through the bank, as there are more and more loan providers on the Internet who all offer something completely different – everything from consumer loans to quick loans that go into the account after only a few hours .

In the past, it was more or less a requirement that you had a fixed and stable income, but today there are also a number of providers who lend money to young people at SU or cash benefits. Either way, you should expect a credit rating of you and your situation to ensure that you can actually afford to borrow.

If your application is rejected

Although it is relatively easy to take out a loan today and there are often no specific requirements for you, there may still be some factors that may result in your loan being rejected. Read below.

Your credit rating plays a role

As a rule, your credit rating is definitely the first point taken into account when submitting your application. The better the credit rating you have, the greater the probability that your application is approved and that you get a good offer. If, on the other hand, you have previously taken out a loan that you have not paid off if you are registered in RKI or if you have submitted too many applications for a short period, there is a high probability that your application will automatically be rejected.

However, if your application is not approved for the first time, there are still some steps that you can follow to increase the chances of your application being approved. Firstly, be sure to pay all current bills and loans back in time. By remembering to pay all your bills, you show the providers that you are responsible and that you are able to repay the loan. If you repeatedly miss a payment, on the contrary, you can expect that your application will never be approved.

Is it possible to apply for more than one loan?

As a rule, it is at your full right to apply for more loans from several different loan providers or companies. Although it is your entire own decision, there are some consequences of submitting several applications and these can drastically affect your credit rating.

When submitting an application to a provider, this is reflected in your credit report . This means that all other providers have the opportunity to see how many applications you have submitted. Although you may not believe that this should have any impact, it may be considered negative that you have submitted applications to 15 different providers. It is therefore strongly recommended that you instead be very selective when choosing your providers.

There is a lot to keep track of when taking out a loan, and it is therefore easy to get overwhelmed and forget about the big picture. Many are also so desperate to borrow money that they simply submit one application after another with the different providers without really going up, why and where they actually apply. This is strongly discouraged. Although it is a bit more time-consuming, it can be worthwhile paying enough time to investigate, research and not least read the individual loan terms of the individual provider. Once you have found a number of loan companies, it is time to compare them and then evaluate where your application is most likely to be approved.

Although it may be tempting to try again, we always recommend that you wait a while to submit another application if your loan request was not accepted.