Pensioners belong to the group of people who do not have it so easy when it comes to lending. Age and a low pension make it difficult to access an installment loan.
Direct banks and renowned major banks with subsidiaries in the online business, in particular, are targeting this target group with the special call credit for pensioners.
Why the call credit can make sense for retirees
The classic installment loan is designed for long terms if the loan amount is to be high and the rate is to be low. The call credit is not defined by terms, it can be used for an unlimited period under the credit line. It is primarily suitable for temporarily bridging financial bottlenecks. Depending on the amount of income, amounts in the five-digit range can also be included here.
However, the pension is significantly lower than the previously earned income, which in turn affects the amount of the available credit line. A call-off loan is repaid by means of a monthly minimum rate; special payments or the repayment of the amount disbursed in one go are also possible. In contrast to the overdraft facility for the checking account, pensioners save real money, because overdraft rates are a few percentage points higher than the target interest for a call credit.
Direct banks go one step ahead and have the call credit for pensioners in the program, even if this is not explicitly marked as such. The description of the offer already shows for which groups of people the framework credit is available.
How is a pensioner’s credit rating determined?
Pensioner loans, like loans to other target groups, are granted according to the creditworthiness of the borrower. The amount of the pension, possibly additional pensions such as survivor’s pension and similar, existing loans and payment behavior of the borrower as well as possible collateral from guarantors or property are important. A call credit for pensioners with poor creditworthiness is usually hopeless. In order to be able to better assess the creditworthiness, banks and credit institutions use the information provided by credit protection companies, to which private credit bureau is one of the best-known institutions in Germany.
Loan offers that use statements such as on-demand credit for pensioners without private credit bureau do not necessarily have to do without obtaining information, because in addition to private credit bureau, there are other service providers from whom queries can be made. However, the problem with such offers is that the conditions for the borrower are often very unfavorable, for example due to a high borrowing rate.