The number of household members has an impact on creditworthiness, as the bank uses income and credit installments to check whether the applicant can repay the loan as agreed. In this check, which is also called the household bill, it also compares the disposable income with the number of people living in the household, since this has a direct impact on the monthly money requirement.
What does the number of children mean for taking out consumer credit?
If a borrower takes out a loan with 3 children, the regular monthly household income must be sufficient to cover both the cost of living and the loan installments. Instead of a household bill tailored to the personal situation of each individual family, it is customary for banks to use fixed amounts per person, with most credit institutions making small deductions for children.
In contrast to possible additional earnings, the child benefit is regularly taken into account when checking personal creditworthiness. So it is not difficult to successfully apply for a loan with 3 children. If the bank believes that the income is not sufficient for the calculated loan installments, these can be reduced by choosing a longer loan term, so that the creditworthiness is rated positively.
Real estate loans are cheap with three children
In one area, a loan with 3 children can even be obtained particularly cheaply thanks to the politically desired support of large families. These are real estate loans. To enable families with many children to acquire home ownership, which, according to the current definition, couples with three children can acquire home ownership, they receive support from different agencies. In any case, the Kreditanstalt für Wiederaufbau grants subsidized development loans for the purchase of residential property by families with at least three children.
In addition, some federal states and cities have launched other programs for family support. Depending on the location, the construction office or the family office can provide information on the conditions applicable at the place of residence. The discounted construction loans not only serve to acquire or build new residential property, but can also be used for construction measures within an existing property. Applying for a cheap building loan for the attic or cellar extension is therefore a good idea, so that the children’s room can be set up for the third child.
Apply for personal loans
For large families, it is advisable to take out a private loan. Appropriate loans are brokered on relevant websites between private lenders and private borrowers, with an approved bank taking care of the formal processing for legal and practical reasons. If loan seekers indicate that they want to take out a loan with 3 children, they will receive particularly favorable offers on request when they are above average. In contrast to a commercial bank, in the case of loans from private individuals, it is also customary to state the purpose of the loan for a consumer loan, since this information serves as a basis for deciding whether to participate in the lending.