The term housewife’s credit was much more common in the past than it is today because it was very popular and used a lot, especially in the 1950s and the decade thereafter. Even today it is still used with pleasure and much, but many no longer know the name housewife’s credit, but rather the credit without income.
Origin housewife credit
This small change in the name is certainly due to the fact that the credit was previously mainly used by pure housewives, whereas today it is generally used by people with no or very little income. The special thing about housewife’s loan is the fact that it can also be given to people with no or only a very small monthly income , which is not so easily possible with most other loans.
The housewife loan is a simply structured small loan, which is granted up to a maximum amount of 5000 USD and is primarily intended for larger purchases that come as a surprise. As already mentioned, it does not require a large income but only a minimum age of 18 years, a maximum age of around 58 years and sufficient creditworthiness.
As a rule, a slightly higher interest rate is used as security for the housewife’s loan, but security through shares, investments, insurance and the like is also tolerated, which is only possible to a limited extent with many other loans.
Credit for the housewife – possible with guarantors
Alternatively, in the case of a housewife loan, the use of a surety as security for the bank or the lender can also be an option. Here is the wife of the borrower, for example, because she would like to buy a new washing machine, for example, while her husband, who has the appropriate income and the associated creditworthiness, is then used as a guarantor who would bear the remaining debt in an emergency if it were the actual one Borrowers should no longer be possible.
In principle, the guarantor of a housewife loan does not of course have to be a spouse, anyone who meets the relevant requirements and is willing to be a guarantor comes into question.
In addition to its simplified granting of low income, the housewife loan is also characterized by the fact that it usually has low rates with a correspondingly longer term , which means that repayment should not be too difficult to master even with little income.
It is of course still important to carry out comparisons in advance, as there are clear differences between different providers that you should pay attention to in order not to incur excessive costs. However, this has become an important basis for almost all monetary transactions.
If you need an installment loan and you are not gainfully employed because you are a housewife and is busy with the child or the apartment, or have little income, you can get a housewife loan. In this article we would like to explain that housewives have not been discriminated against by credit institutions for a long time. A housewife’s credit is available to a housewife. We would like to draw attention to its special features and conditions.
What exactly is a housewife loan?
Housewife credit as a term has existed for several years. This type of loan is not explicitly aimed at housewives, but also housewives can apply for a housewife loan. The prerequisites for this are that the man is currently not in employment or has a low income. Such loans are mostly online loans and are usually taken out for small household purchases.
For example, you need a washing machine or a refrigerator. For this reason, loan amounts of as little as 500 are possible. Since the income of borrowers is usually low, the terms are long and interest rates are low. This is very beneficial for inactive and low income people.
How can you apply for a loan as a housewife?
It’s no secret that credit institutions are skeptical of low-income customers. In most cases, even credit requests are rejected in most cases. Therefore, housewives or housewives can only apply for a loan with relatives, friends or spouses. However, these must be able to demonstrate a permanent income. The second person as an example of the spouse acts as a guarantor in this case and if the loan cannot be paid, the spouse must vouch for it. The guarantor gives the bank the security that the bank will get the borrowed money back. Housewife’s credit is mostly referred to as a credit without proof of income, but usually the partner or relative must prove and guarantee an income. With this type of loan, proof of income is indirectly necessary.
Example of a housewife loan
As a housewife, you are very busy with the newborn child at home and therefore cannot work full time. The man works and yet there is not enough money for the desired new refrigerator. So you can get a housewife loan. The housewife loan is only granted if you take it up with your partner or someone who guarantees this loan if you can no longer pay it. If the man agrees, you can apply for a housewife loan. Most of the loan amounts are from 500 to 1,000 USD.
Depending on the bank, the sums can of course vary. For this reason, it is not possible to specify the exact loan amount. Nevertheless, no large amounts of credit are granted. You sign the housewife loan contract with your partner and in the next few weeks you will receive all the papers at home and shortly the money in the account. Most of the time interest falls on these loans and you only pay back the amount you took. For example, you take out a loan of 500 USD, so you only pay back 500 USD.
The rates are based on the specified months. For example, you set a monthly term of 24 months with the bank advisor at 500 USD, so you pay 20.83 USD within 24 months. The long terms are common for a housewife loan because the borrowers have no fixed income and therefore cannot repay the loan quickly.
It may well happen that you can no longer repay the housewife loan. As soon as you miss the agreed rate, you will be asked to pay with a reminder. If you cannot do this, the bank turns to the guarantor (in this case the husband). Now the man is forced to take over the remaining monthly installments for the crusader. If he refuses or for some reason he cannot pay the money, he will also receive a reminder and further follow the negative Credit bureau entry and in the worst case a lawsuit in court.
The spouse must of course bear the legal costs and he will probably lose these against a bank as there are no objective indications to justify the failure to pay the loan. This forces the spouse to pay the costs and reimburse the bank. For this reason, before taking out a housewife loan, it is advisable to weigh up whether you can pay it at all so that you do not get into such situations.
Bad Credit bureau, what now?
With a bad Credit bureau the whole thing looks bad again for the borrower. Many large and reputable banks will probably reject the loan application due to the bad Credit bureau. So you can only turn to small banks who advertise that they grant loans despite bad Credit bureau. But be careful, these banks usually have very high interest rates and the terms of the contract are more than questionable.
It is therefore advisable to find out in advance whether the bank you are going to ask for a loan is really serious. To do this, you go online, read various forums about what people write about this bank and thus form an opinion as to whether the bank is now worthy of a loan request.