The first loans of an eighteen year old
The first loan for 18-year-old young adults is to apply for the overdraft facility, unless the bank grants it without being asked. The opening of a current account is permitted to minors with the consent of their legal guardians and is mandatory for young trainees, however, the bank may only grant a credit limit beyond the credit limit when the adult reaches the age of majority. For reasons of cost, young adults should only use their current account’s overdraft facility for short-term financial bottlenecks, since the interest rates are too high for long-term use.
If the driver’s license has not already been financed by the parents or grandparents, the first regular loan for 18-year-olds is preferably used to obtain a driver’s license. Here, young adults compare the terms of financing through the driving school with those of consumer credit from a bank. Since young people at the age of eighteen mostly have a low income, the parents can ask for a guarantee.
Special features of student loans
If a loan for 18-year-old prospective students is used to finance the studies, banks mostly grant the corresponding student loans without any special collateral, since in this case the high income to be expected after graduation is assumed as loan security.
In addition to the credit institution for reconstruction, some commercial banks offer their own student finance models, some of which are cheaper than promotional loans. It should be noted, however, that most banks require the regular presentation of student certificates for student loans and if they fail to do so, they convert the loan to a much more expensive regular loan.
Loans for purchases
In many cases, a loan for 18-year-old young adults is used to finance the first home furnishings. Here, young people take care not to overdo the cost of the furniture. The amount of credit required for your first own apartment can be significantly reduced by buying cheap furniture. These can later be easily replaced by a matching and solid interior. Those who have just reached the age of majority pay attention to an inexpensive loan and compare different offers.
Dealer loans are usually cheaper than bank loans, but they only offer an actual economic advantage to young adults if the cheap loan does not have to be paid with excessive product prices. In addition, it makes sense to ask uncles and aunts for a small friendship loan, especially since they often give a grant instead of the requested loan.