The child allowance amounts to between 184 and 215 euros per month in Germany and thus contributes significantly to the household financing of families. When consumers ask whether a child benefit loan is possible, they usually refer to whether or not financial institutions take that benefit into account when making the loan decision. The answer varies depending on the bank.
Budget statement with or without child allowance
All credit institutions check whether the customer can pay the agreed installments before paying out a loan. In addition, many banks require a positive decision to be able to garnish if they are not repaid properly. This is not possible if sufficient income is only achieved through the child benefit. Thus, financial institutions grant a loan with child allowance credit if they are satisfied with the possibility of the lender repaying the loan and do not at the same time demand a labor income above the attachment exemption limit. Of course, the prerequisite for the crediting of the child benefit in the budget bill is that the borrower receives the child benefit until the end of the contract period. If the child becomes eighteen years old during the eradication period and is planning an education, parents should refer to this when borrowing. The child benefit is the only state benefit that is usually credited to the domestic budget of many domestic banks. That is justified, since its payment is not a social benefit in the strict sense, but the assurance of a subsistence minimum of a child. Anyone applying for a non-scholarly loan in Switzerland, however, notes that the Swiss federal banks never consider child benefit as an income element in their credit check. Most financial institutions set the Dispositions-Kredit with the child allowance, since they evaluate all regular payments in the calculation of the disposition frame. In this way, the bankruptcy credit usually remains unemployed bank customers, unless they draw the attention of a bank employee on their account management by constantly overstretching the credit line.
Child benefit for adult children as credit customers
For children of full age, parents continue to receive child benefit, provided that they are under twenty-five and in education. The parents continue to have the parents, but the instruction to the family fund is usually to transfer the money directly to the child’s account or the transfer of the corresponding cash amount in cash. In order for a financial institution to give the child a desired loan with allowance for child allowances in the household bill, the direct transfer of money to his current account for evidence purposes makes sense. When consumers apply for an immediate loan without a salary, they determine the income for the loan with the child benefit. In this case, misrepresentation of household income is deliberately not allowed, while the crediting of all income components is considered normal and the bank can not change the calculation due to the lack of supporting documents.
Alternatives to the bank loan with child allowance
When consumers apply for an installment agreement, they are responsible for calculating their monthly installment charges. In contrast to a bank, the trader does not have to ask for income because he does not pay off a loan but delivers goods with the agreement for later payment. At the same time, it does not receive any information about any existing liabilities via the private credit information, as the credit protection only supplies complete data records to fully-owned banks and informs dealers exclusively about existing negative features. In order to avoid payment defaults, mail order companies limit the credit amount for new customers, in some cases they also request a down payment as a credit check. If the buyer determines what rates he can pay, he plans the repayment of the dealer loan with the child benefit, as this is also available to him. Even on platforms for private credit brokerage, a loan with child benefit can basically be taken, even if the borrower has only a small additional income. The private lenders registered on the relevant platforms rate social criteria and the purpose of a requested loan more than strictly economic criteria, so that even unemployed applicants are easily given a child-bearing credit. Depending on the sum, the loan is drawn by one or more platform members registered as lenders. The extensive indication of private and economic data is harmless, since the operator guarantees for the data protection. Last but not least, he only knows the bank details and the addresses of the members, so that every communication is via a system provided by him. Also, the payment of the loan and the subsequent repayment take place via the clearing account of the platform owner. The formally occurring as a lender commercial bank meets only legal requirement for organized lending, on the awarding decisions of the individual members it does not work.