Credit for young people – what are the chances for credit for young people?
Adulthood. Once, the coveted stage we were waiting impatiently for today, a real life lesson. Starting your professional career is a real challenge, especially if you are planning one of the most serious and biggest purchases in our life. Is getting a loan for an apartment possible when we are just entering adulthood? What can you do to make it happen?
Earnings and form of employment vs credit for young people
Table of Contents
- Earnings and form of employment vs credit for young people
- Loan for an apartment for young people – what’s the matter?
- Credit for young marriages – rules for granting
Currently, the lowest national price is over USD 1,500 net, which means that such an amount is often proposed “for start”. Such a low amount minimizes the chance of getting a loan, almost to zero. The average amount that currently entitles you to get a loan is around 2500 net. Exceeding this amount allows you to take out a loan that can cover the cost of buying a studio in a small town. It should also be emphasized that currently prices on the real estate market are rising rapidly. In large cities, such as Warsaw, Wrocław or Krakow, the price for a studio apartment exceeds USD 180,000, and thus the amount of necessary credit increases.
Definitely the biggest chance is given to people employed under a contract of employment, especially this contract, signed for an indefinite period. However, the popularity of “junk contracts” (that is, commission and specific work contracts) is appalling. Signing them often reduces the costs of the client, which is why they are so willingly offered on the current labor market. Often, such contracts are signed for a limited period and can be broken overnight. Most banks do not look favorably on such terms of cooperation, calling it “lack of continuity” or “lack of capacity”.
Banks, of course, before granting a loan check the so-called creditworthiness. The higher the capacity, the greater the chance of receiving a loan. Elements that have a real impact on it:
- the amount of income received (and in this context, also, the type of contract being signed)
tax returns in recent years (usually 2 years)
- work continuity – which in the context of a specific work contract or mandate contract may have an extremely significant and ultimately decisive value (although there are also exceptions in this respect)
- credit history – if any. The “cleaner” history, confirmed by reliability and timeliness, the greater the chance to entrust another loan. Contrary to appearances, a completely “empty card” is not the best solution. Therefore, it is often recommended to take a loan and then pay it back quickly and correctly. This point can be extremely bothersome, especially when banks look and suggest only the so-called scoring, without individual and non-harmful analysis.
- other – means all those features that may or may not be relevant in the context of the selected bank. These include: savings, period of employment or possession of credit or payment cards
Loan for an apartment for young people – what’s the matter?
A program created a few years ago, aimed at helping all young people who start their lives in adulthood. Its assumption is to help in “getting your own way”, to some extent subject to state funding. The purpose of such funding is to enable and accelerate the purchase of your m4. Importantly, the assistance is not about supporting banks or repaying a loan. The state “adds” 10% of the value of the selected apartment, so we are not forced to save tens of thousands of zlotys.
Credit for young marriages – rules for granting
Help consists in obtaining so-called own contribution (10% of the total amount, in the case of singles and childless marriages), not the loan itself. To get such help, the following conditions must be met:
1. the maximum age for participation in the program is 35 years
2. the minimum loan period is 15 years
3. the loan must be granted in USD
4. the flat must be from the primary market
5. the flat cannot exceed 75 sq m
If any of the above requirements are not met or if we do not have, for example, order continuity, company loans remain. And although they are extremely popular, you have to remember about their high interest rate and relatively unattractive form of repayment.