Reaching age and receiving an ID card is an important stage in everyone’s life. At this point, you can decide for yourself, your life choices and finances. Young people often face a lack of money, which is why they willingly use the services of the non-banking sector. Many companies have been offering loans for 18 years , but are such products really available on the market and are they a good solution to financial problems?
Youth loan – who has a chance to get it?
Most young people cannot count on a traditional bank loan due to the lack of sufficient creditworthiness . It is hard to imagine that an 18-year-old, who is still in education, already has a stable source of income and has any credit history . Non-bank companies operate on slightly different principles as the banking sector, which is why they offer quick loans to young people, granting them on simplified terms. After all, it is difficult to find offers for 18 years , because most lenders have set the criterion for granting a loan for a minimum of 20 years. It is a safeguard not only for the interests of the company, but also for a young person who, through imprudent financial management, may fall into the trap of debts and cause problems.
Why is it difficult to find installment loans for 18 years?
Although the market for non-bank services enjoys considerable granting and accessibility, lenders require clients to meet certain conditions. Non -bank loans for young people are not granted to anyone who applies. A specific age criterion from 20 years is intended to prevent abuse by customers and protect against default. First of all, the point is that young people do not always have their savings, do not have a permanent job and in many cases they are supported by their parents. In addition, they are not always wise about finances, spending money mainly on pleasure. Such a cash loan could not be repaid on time, which would have unpleasant consequences, such as entering on the list of debtors and even bailiff seizure.
Why do young people get a cash loan?
The needs change at every stage of life, which is why installment loans are used for various purposes. First of all, young people need money for small expenses and their livelihood after moving out of their family home. The National Register of Debtors even conducted a detailed market research, developing a report entitled “Financial Portrait of Youth”. It shows that, contrary to appearances, young people do not take non-bank loans at their own pleasure, but important things related to everyday life:
Most young people use installment loans to decorate their home or shop at home. For the holidays and for their own hobby, money from loans is allocated by few young people, which proves their sound financial management.
How are non-bank loans for young people granted?
In addition to the basic age criterion, young people must also meet other conditions to receive cash. First of all, remember that an installment loan is a more complex product than a traditional payday loan. It is granted for a larger sum and for a longer loan period, which is why lenders check their clients a bit more carefully before considering the application. One of the most important conditions is a solid income , despite the fact that this form hides various sources, not just work with a permanent contract. Lenders grant money without certificates , but require some financial stability by offering:
- Student loans – granted on the basis of a student loan , income from weekend or occasional work or private lessons.
- Loans for young farmers – the basis for granting money may be income from running a farm and other gainful work.
- A loan for young married couples – in this case, the source of income may be funds from 500+, renting an apartment or other social benefits.
The cash loan is granted for any purpose, so you do not need to show proof of expenditure. This distinguishes non-bank loans from traditional loans and allows for freedom in money management. Young people can allocate the funds obtained to home , further education or business development, thus improving their financial situation.
Why is it worth using an installment loan?
Popular payday loans can be a good solution if you have to cover small expenses. Unfortunately, the amounts usually awarded are not high and the need to repay the entire liability within 30 days can lead to debt . A loan for young people with repayment in installments allows for a better adaptation to the needs, as you determine the amount of the loan and subsequent installments and the repayment date. After completing all formalities, the money goes to the account within 15 minutes , so you do not have to wait many weeks for a decision, as is the case with banks. Timely repayment of commitments is a good idea to build your credit history for the future, making it much easier to use financial products offered not only by non-bank companies, but also the banking sector.
What to remember when applying for a non-bank loan?
When borrowing, please remember that you will have to give back all your money. Therefore, the most important thing is to determine the amount and amount of installments that will be repayable. The cash loan is granted without unnecessary formalities and without certificates, but you cannot exaggerate with its amount so as not to get into a spiral of debt. In addition, before submitting the application, it is worth analyzing several offers to choose the best one tailored to your specific needs. You must also remember about the timely repayment of each installment, because even a small delay is associated with the calculation of severe penalties.