With a regular net salary of 3000 USD, even larger credit requests can be easily met.
Banks take into account the total net income of those who sign the loan application and later the loan contract (family income). These people become contractual partners of the banks as borrowers and not as guarantors, as is often wrongly assumed.
The signing of the loan agreements by another person is not a mandatory requirement. However, many banks require a co-signer when it comes to larger loan amounts starting at around 10,000 USD.
Every now and then the co-signer has to live in the same household as the first signer. Mostly it will be the spouse.
The banks use a simple formula to determine the maximum possible loan amount for loans for consumption purposes.
The maximum loan amount is a multiple of the regular, sustainable net salary.
15 times the net salary is often assumed. After that there is a maximum amount of 45,000 USD.
The freely disposable income is understood as the difference between all regular income and all expenses, insofar as the resulting amount is attachable.
Lite lender, for example, provides an extensive household calculator.
Only consider revenue that accrues regularly. One-off commissions or gratuities are not included. Strictly speaking, the same applies to Christmas bonuses and holiday bonuses.
Some banks accept certain social benefits such as child benefit as income.
If you do not live for rent, but in your own home, the rates for the completed real estate financing must be entered in the corresponding field.
When it comes to spending, we must not forget costs that do not accrue monthly, but in longer time intervals. These include, for example, insurance premiums. Such costs have to be converted to the month.
When you have completed the calculation, you know which monthly loan installment you can afford.
However, the bank is expected to proceed differently when calculating the disposable income.
For the bank, the first thing is to determine the attachable amount.
In the case of non-earmarked installment loans, banks generally do not accept any other security apart from a wage assignment.
The attachable income is specified in the attachment table. Here is an excerpt from the Federal law for net amounts between 3000 USD and 3009.99 USD.
Banks will not necessarily expect that the monthly loan installment can be paid from the attachable amount alone.
But they will not accept an installment loan that requires a loan installment of 500 USD for an attachable amount of around 49 USD.
For example, if the freely disposable and attachable income is only 49 USD, only a very small loan amount, if any, will be possible.
At the current average interest rates, the term for a loan of approx. 4,300 USD would have to be 120 months if only 49 USD were available to repay the installment.
There will be few banks that engage in such a loan business.
On the other hand, borrowers should make sure that they can at least largely represent the loan installments from the attachable income.
The seizure allowances serve to protect debtors. Taking into account the respective standard of living for a certain salary, they guarantee the subsistence level.
If the credit rate is largely repaid from the garnishment-free income, this is certainly at the expense of maintaining normal living standards. This is often the beginning of overindebtedness.
In a second step, the bank will draw up its own budget statement. Some banks use the information from the loan request.
Other credit institutions assume lump sums as set out in their lending guidelines.
Example: 800 USD are set for the first person in a household and 200 USD for each additional person. In the case of a four-person household, the flat rate for the household is around 1400 USD.
All housing costs are added to this amount. For example, the cost of an apartment can be 1200 USD.
The freely disposable income is then 400 USD.
In the following example, we assume a family income of 3000 USD net. The household should consist of spouses and two children. We calculated the freely disposable income at 400 USD.
The maximum loan amount at a rate of 400 USD per month depends on the term of the loan and the interest rates.
For our calculation, we assume the average effective annual interest rates for consumer loans to consumers, which are based on statistics from the Agree bank.
The current effective interest rates for loans with a term of up to five years are roughly 4.6% and those with a term of approximately 6.79%.
We created the table with the help of the Lite lender loan calculator.
Assuming the average interest rates, you can count on loan amounts of up to 30,000 USD with reasonable terms between 60 months and 84 months if your freely disposable income is 400 USD.
Some banks undercut the average interest rates from the statistics of the German Bundesbank. You get better interest rates even with an above-average credit rating.
The method outlined above gives you a pretty good idea of how much credit you can afford and what the maximum loan amount will be.
However, an exact determination of the maximum loan amount is impossible.
Because banks determine the creditworthiness of their customers based on internal guidelines that no bank publishes.
The result of the credit check has a direct impact on the question of whether a loan is granted at all, the amount of the loan and the interest rate at which this is done.
In addition to determining the freely disposable income and economic performance, the score values provided by the credit reporting agencies play a decisive role.
In addition, data on personal circumstances are included in the credit assessment. The type and duration of the employment relationship are probably the most important factor.
Civil servants and civil servants are often given preferential treatment. The same applies to employees who have been with the same employer in crisis-proof industries for many years.
Loan customers in fixed-term contracts, on the other hand, have a much harder time getting loans. The term is regularly limited by the duration of the time limit.
It is important for temporary workers that the level of income is often not stable, but varies. The same problems exist for the self-employed.
Multiple applicants will not be accepted for loans without Credit bureau. Therefore, the family income is not used, but only the applicant’s income.
Credit bureau-free loans are the most transparent credit products. However, they are not cheap and their amount is limited. Only loans over 3500 USD, 5000 USD and 7000 USD are possible.
The requirements for disposable income are strictly and precisely defined.
In tax classes 1, 2, 4 and 5, granting 7,500 USD to two dependent children is not a problem.
If you are taxed according to tax class 3, you must earn at least 3,010 USD on two dependent children. However, you can easily apply for 3,500 USD or 5,000 USD.
Enter the required loan amount or the maximum loan amount estimated using the above method into the calculator.
Don’t forget to specify the purpose. The purpose is particularly important when it comes to vehicle financing and loans to renovate or modernize real estate (residential loans).
There can be special conditions with both loan variants, which are cheaper than with all-purpose loans.
A single loan application is sufficient for a financial check. The financial service provider will then automatically select the best loan offer from the partner banks for you.
The credit inquiries are non-binding and free of charge. They are also shoe neutral and have no effect on score values.
If you are unsure whether your specific loan request has a chance of success with a net salary of 3000 USD, you can use the service hotline.