Banks in particular are reluctant to grant a loan for 400 USD jobbers. They base their decision on the lack of certainty, since the job is either temporary or the secondary earnings can be terminated by both sides within a very short time. Nevertheless, it is possible to get a loan that usually does not even require proof of income.
The trade provides goods loans
In many cases, students at banks are affected by the cancellations. The Federal financial aid is not counted as income and the earnings from the part-time job do not even reach the garnishment limit. Commercial credit offers a way of fulfilling a wish or buying or replacing a required household item in installments. Many department store chains and large retailers often grant this credit for 400 USD jobbers without proof of income.
The basic requirement for this is good to very good Credit bureau information. Since mobile phone contracts are often concluded with young people in particular, which are not or only partially fulfilled, these are a negative feature of Credit bureau.
The interest rate on the commercial loan is higher than on the bank loan
However, traders who sell goods on credit want to earn from it. Therefore, the commodity loans are often provided with interest rates that are well above the usual bank interest rates. In addition, there are usually processing fees that are added to the price of the goods. As a rule, washing machines, television sets or computers are usually financed with a retail price between 500 and 1000 USD. Due to this amount, the repayment of the loan usually takes 1 to 2 years.
However, a loan for a 400 USD jobber carries many risks
As with any loan, the question of need should also be asked for a commercial loan. Especially with a low income, an additional monthly loan installment is not always easy to manage. It gets even worse if the part-time job ceases to exist and there is no prospect of an adequate replacement. If at all, payments can only be deferred for a short time.
In these cases, retailers react in a similar way to many mobile operators. After initiating the dunning procedure, the claim is usually sold to a collection agency. It should therefore be ensured that the credit for a 400 USD jobber does not lead to the debt trap.