What’s a housewife loan?

A housewife loan belongs to a form of credit that is free of creditworthiness. When granting a loan to a housewife with irregular or missing income, most credit institutions block it. The housewife simply lacks collateral to guarantee that the lender will get his loan back. Moreover, in the absence of income, it is not possible to seize a housewife loan – neither via an account nor a wage garnishment. This makes it difficult for German banks to provide credit lines for housewives. Only taxable income from wages, salaries or self-employment is regarded as income. This does not include government revenue such as social benefits or child benefit, nor does it include sickness benefit or other insurance benefits.

Different ways for housewives to get a loan

It’s not impossible to get a housewife loan. The first possibility arises from the woman’s state of life. If she is married, she can apply for a loan with the spouse as guarantor or co-applicant. The advantage for a credit institution is that the spouse is liable in the event of non-payment in instalments, or at least secures the monthly instalments. This process makes little sense, however, because the interest burden is significantly higher than if the spouse takes out the loan. Because higher expenditures are at the expense of the household budget.

The situation is different for loans for the integration of a housewife into the first labour market or for setting up a business. Here the state supports the housewife through numerous projects so that she can secure and strengthen herself through her own income. Especially housewives who have raised their children for many years receive integration measures.

Single housewives face the biggest hurdles to get a loan. In this case, credit intermediaries offer Housewife loans, some of which are provided by banks or foreign investors. The donors include credit institutions, companies or private individuals from Switzerland or Liechtenstein. There is no credit check for German citizens there. However, Germans cannot make a direct credit application abroad, as there is always a reporting requirement.

Criticism of housewife credit

Banks from Germany attract potential borrowers who are housewives. Too often, these are dubious offers. The aim is not to grant credit to housewives, but to “distribute” prepaid credit cards. The providers behind this mesh sometimes also come from other EU countries. A fee is charged for accepting the alleged credit card. As a result, many housewives assume that there is a credit limit on the card. No, because only the money previously booked on the card is available.

Another problem is the high indebtedness of housewives who take out a loan and are unable to repay it later. Creditworthiness free housewife loans do not initially end up in the directory of a credit agency such as Schufa or Infoscore. That doesn’t mean it’s gonna stay that way. If there is no instalment, the solvency of the borrower may be called into question and the credit institution may send information to a credit agency.

Advice from consumer protectors

Often the housewife loan is the only way to bridge bottlenecks in the household budget. When choosing a loan, however, women should pay attention to the volume and compare several offers in advance. In the case of existing negative entries in the Schufa, lenders often charge very high interest rates, which are referred to as usury. It is recommended not to apply for a housewife’s loan if an affidavit has already been made. was surrendered.