A loan with 400 USD income can of course be found. Nevertheless, the credit options and loan amounts for low earners are severely limited. The article highlights the credit options available to low-wage earners.
Loan with 400 USD income – loan despite low wages
A loan with 400 USD income is unfortunately not available without restrictions. The easiest way to obtain credit is via the salary account. Anyone with a regular salary in their checking account can request a small overdraft facility from their bank. The amount of the overdraft facility is based on the average earned income.
About a monthly salary, the overdraft facility is realistic, even with low incomes. Beyond this framework, it becomes difficult with lending. The hurdles can be justified in the budget statement. The biggest hurdle with an income of just 400 USD is the garnishment exemption limit. Installment loans from ordinary financial institutions are only granted if earnings exceed this individual limit.
Accordingly, every credit institution will react cautiously to the request for an installment loan with an income of 400 USD.
Installment loan despite a 400 USD job
An installment loan from a normal credit institution is only possible for 400 USD jobbers together with a solvent guarantor or co-applicant. In this case, the guarantor assumes credit liability. A loan with 400 USD income is possible up to the guarantor’s credit limit. Under these conditions, not only the offers of the local credit institutions are possible. A cheap small loan from a direct provider also allows the option of a guarantee or a co-applicant.
Loan security through high-quality property security could be an alternative to a guarantee. Survivor’s pensions are often around 400 USD per month. Nevertheless, these retirees remain creditworthy if they own a paid property.
Another option for a modest installment loan with an income of 400 USD is offered by department stores and mail order companies. If you regularly order from a shipper and pay your bills on time, you have a chance to use the sales-promoting loans. Nevertheless, the loan amount must of course be in relation to income and the Credit Bureau must be clean. The loans from the major electronics markets can serve as a particularly prominent example. Under these circumstances, real zero percent financing of the purchase is even possible.
Low income credit options – the private credit market
A loan from private lenders can be the solution to many unfulfilled loan requests. In parallel with the tightening of the criteria for commercial lending, an expanding market for private lending has developed. The personal loan market is dominated by two large portals. Spin Lender and Across Lender have both been active for about 5 years.
The investors for the private lending on the portals are small investors. Similar to an online auction, investors can bid on a loan request. The borrower can now accept or reject the bid. If a sufficient number of bids have been received, the loan is ready for allocation. A bank working in the background handles the further loan processing. She pays out the loan with 400 USD of income and receives the repayments.