Housewife’s credit – strictly speaking, this form of credit no longer exists today. The term comes from the early years of the Federal Republic of Germany.
What has remained is a search term under which financial service providers offer loans, mostly small loans, for low-income individuals or families. In the 1950s and 1960s and also in the 1970s, the conservative division of roles was still widespread.
The wives took care of the household. Later, when the economy was on the up, many women were still employed. They usually worked on an hourly or half-day basis.
The main earner was the husband. Very rarely there was the reverse case or the case that both spouses earned approximately the same. The term housewife’s credit has developed against this social background.
The history of housewife’s credit
Housewife’s credit was not understood to be a loan that was used to finance furnishings or household items.
It was also not a loan to finance wishes such as clothes, shoes or kitchen appliances that were believed to be typical of housewives.
Rather, the housewife loan was an all-purpose loan that could be applied not only by housewives but also by all other groups of people who had little or no income of their own.
In addition to the spouse who does not earn or only earns little (theoretically, this could also be housewives), housewife loans could also be applied for, for example, by adult children in training and students. And it went like this:
The person concerned completed a loan application with a branch bank, preferably with the house bank. If there was an account there, that was a plus.
The tax bracket of the main earner, usually the husband, was entered into the loan application.
If the bank could conclude from the tax bracket that the income was high enough, that was enough to hedge the credit default risk.
In this case, the bank trusted that the obligations from the loan would be met and granted the loan.
Such a lending procedure would be inadmissible today. Every bank is obliged to carefully check the credit rating of the credit customer before a loan is issued.
With information from a credit agency (for example at Credit Bureau), the reliability of the credit customer and the probability of repayment are assessed.
The information in the loan application is used to determine personal circumstances (single, married, children, rented apartment or property?) And economic performance (income fewer liabilities).
The bank determines an in-house bank score from both examination elements, which is reflected in the award guidelines.
Nowadays, for legal reasons alone, it is not possible for a loan applicant to rely on the creditworthiness of a third party who has not become a contractual partner. No loans are granted to people without income alone, that is, to house wives or housewives.
What does housewife credit mean today?
Two types of credit are currently usually offered under the advertisement for housewife loans:
Small loans for people who live in a household and have little but sufficient income.
Short-term loans from special providers that are only granted for a few hundred dollars and only with terms of one to two months.
Both forms of credit require income.
This does not necessarily have to be a regular salary income or income from self-employed or commercial activity.
But a loan for housewives or housewives without any income is a fairy tale.
Short-term loans with low income
In the case of short-term loans and mini-loans, some special features are important.
First-time applicants in particular only receive very small amounts of credit, usually only a few 100 dollars. The terms are very short. They are often only one to two months.
The loan amount must be repaid in one sum at the end of the short term.
Interest rates seem fairly normal. They lie at the top of the effective annual interest rate to be used for normal installment loans.
But if you want additional services, you pay a disproportionate amount. Additional services can consist of express functions, payment of installments, term extensions and credit certificates.
Mini loan providers expect proof of income or expensive loan defaults.
However, the demands on income are not too high. As a rule, the minimum income is around 600 dollars per month. In addition, it does not necessarily have to come from regular employment.
Low-earning housewives or housewives and also students or trainees who meet all other requirements (for example, majority, account, and place of residence in Germany) have a credit opportunity.
We have presented all the details along with the credit comparison and the risks associated with short-term loans in a separate article.
Small loans for housewives, housewives, and low earners
Banks are ready to lend if there is enough free income after deducting household costs and taking into account the seizure allowances to shoulder the loan installments.
Housewives, housewives or other people with no income or only with income within the garnishment exemption limit do not receive a bank loan themselves.
You need a co-signer who must meet all the creditworthiness requirements.
A guarantor is often mentioned in this context. However, guarantees are unusual for loans for private individuals.
In general, the bank insists that the co-signer becomes the borrower together with the main signer so that both can be accessed immediately in the event of a performance disruption.
Lower-earning couples, to whom the offers for housewife loans are primarily directed today, must always sign together.
The amount of the small loan that is possible depends primarily on the individual creditworthiness of both partners and the common income.
Offers for so-called housewife loans
With the small loan comparison, small loans can be compared free of charge and without obligation. Loans from USD 500 (offer from Good Finance) are currently possible. The minimum term is twelve months.
Most of the banks participating in the comparison offer their customer’s documents upload and video ident. This speeds up the payment of small amounts of credit.
Smava not only provides bank loans but also P2P loans. Among other things, E-Money takes part in the loan comparison.
E-Money is considered the market leader. According to the financial service provider, students or persons on parental leave can also post loan projects on the financial service provider’s portal who do not have a regular income from dependent or self-employed employment.