Credit for 70 year olds.
Repeatedly, pensioners have to experience that when it comes to a loan for 70-year-olds, they are not welcome at banks. Again and again hurdles have to be overcome that pensioners in particular can hardly meet. The requirements are set very high so that this group of people does not have it easy to get a loan for 70 year olds.
Many cannot understand this and give up quickly. But the search for the right loan can be worthwhile. Because there are banks that grant such a loan. To do this, however, the requirements set by the bank must be met.
Credit from the house bank
If the applicant has been a customer of the bank for many years, it may well be that a loan is granted to 70-year-olds, but often only if certain conditions are met. At a very old age, the credit default risk is very high, so that borrowing is not possible without collateral. The bank sees the risk of death too high at this age and may then no longer receive any repayments. As a result, banks often require a bank guarantee to prevent a loan default.
The guarantor can be your own child or your grandchild if it is already over 18 years old. The guarantor can use his income, which must be attachable, to pay for the loan for 70-year-olds if the borrower is no longer able to do so. Pension payments are often not counted as income, since only part of the money can be attached in the event of a loan default. However, pensioners have often taken out life insurance many years ago, which then has a high surrender value.
This insurance can serve as security as well as a guarantee. It would be an alternative because a guarantor is not always found. However, it should be noted that the insurance can be canceled quickly if a loan installment is not repaid.
Loan from credit intermediaries
Credit brokers on the Internet often offer a loan for 70 year olds. However, the same requirements that a house bank requires must also be expected here. Whether such offers are worthwhile becomes clear when a loan comparison is made. This comparison can be carried out on the Internet and costs the loan seeker only a few minutes.
If the effective annual interest rates here are lower than at the house bank, it is very useful to apply for a loan for 70-year-olds online. If interest is saved, the loan is quite cheap so that the installments often do not have to be as high. This in turn does not burden the household budget too much and there is still enough money left over for other purchases.
If the pensioner has no way of providing enough collateral to apply for a loan, his family should be by his side. Here the children or grandchildren can help. They either help out with their private wealth or take out a loan to pass the amount on to the pensioner. Younger applicants can often expect much better conditions so that inexpensive loans can be found. Both sides should insist on a loan agreement so that the repayment can go smoothly.