Pensioners do not want to give up their mobility and, like everyone else, do not want to give up on a car. In addition, retirees are entitled to a little luxury and have to pay bills. Since the pension payment is not the same for everyone, many want to finance a pensioner.
This is not always easy, because retirees are at risk from the age of 65, so banks have many concerns about lending. Although they get their money on time and can not lose a job, even at the age of death is the risk of death higher than in young people.
Improve creditworthiness – get credit
There are many ways to improve your credit rating when it comes to financing for retirees. Retirees have a fixed income, through the pension payment and do not have to worry about unemployment. Nevertheless, their credit rating is not the best if they are older than 65 years. To improve the credit rating, different options can be considered. First, a guarantee would be a good way to increase creditworthiness. So the child or the grandchild can act as a guarantor.
If they sign the loan agreement and, in the event of death, pay installments on retiree funding, each bank will award a loan. Another possibility would be, if there is no longer a family of one’s own, to use life insurance. Banks always accept life insurance as collateral, especially with a retiree, because experience has shown that the repurchase value is very high. For example, the repayment value could be used to secure the loan amount and a loan agreement will be concluded.
Some banks require a pensioner with a residual debt insurance. This would come to fruition if the borrower dies and then automatically assumes the loan installments. On average, this insurance is at a residual debt of almost 12,000 euros.
Where should the loan be taken up?
Once the credit rating is given, it can be selected whether the funding for retirees at the house bank or at a direct bank on the Internet is included. To decide which bank to choose, a credit comparison can help. This can be done on the Internet and branches within a few minutes and mouse clicks, who has the best deal.
Only then should a decision be made and a contract be concluded. At the house bank, the money would be transferred to the current account and the monthly installments would be deducted automatically. In the direct bank, the process is the same, except that here the processing time is much faster.