Is it possible to borrow from a minor?
Regardless of age, we all have at some time had the need to request some form of credit or loan, and in the case of younger people, extra money may be necessary to pay for some student expenses.
In the case of young people under 18, age can be a limitation, but it is not impossible to make an application. For this, it is necessary to have the proper professional advice so that financial stability is not affected and you can create a good credit history at an early age.
Are you a minor? What should you do to apply for a credit?
First, you should have a conversation with your parents or financial advisors, because these will be responsible for signing as a guarantee on the application, assuming payment of the debt in case you can not do it. In the houses of study, there are advisors that can help you as a student to choose a type of loan that is appropriate for your circumstances.
Select the bank of your choice, or a credit union, always keeping in mind that they will not always accept the request, due to the high risk of default and the absence of a verifiable credit history.
If you have obtained the approval of the financial institution, complete all the requested forms. These vary according to the type of loan. The forms can be sent through the institutional website, by email or take them directly to the offices of the bank.
Once this step is completed, it will be left to the entity to give an affirmative response to the loan request, as well as to set the interest rate. When the bank has evaluated all the conditions, it will proceed to sign all the paperwork and wait for the money to be paid.
What are the requirements to apply for a loan as a minor?
To achieve this type of financing, there are usually a number of common requirements in lending institutions to borrow. These are:
- It is necessary to have the Spanish residence and present the Identity Document or NIE
- Own an active mobile phone where they can contact you
- Own a bank account in which you can credit the money
- It is necessary to present a document that specifies the source of income, both personal and family. Usually, when it comes to income greater than 400 or 500 euros, the process is usually not so problematic
- In addition, it is necessary to have someone who guarantees to the lender institution that will be responsible for the payment
What are the responsibilities of the debt guarantor?
This person is obliged to make the payment of the credit agreed with the bank, also being able to attach the costs of some interest for non-payment. There are two types of liability levels for the debt guarantor :
- Joint and several liability: in which the bank requests the payment from the creditor or its guarantor in full, and it is up to both parties to agree on how the costs will be divided
- Joint liability: in these cases, the bank establishes an amount for the payment of the debt to the creditor and its guarantor, whose total sum will be the amount loaned
Some important reminders
At the time of making the request, it is important to have a clear idea of the reasons for doing it. In addition, you must make sure to request the amount of money that is completely necessary. The smaller the amount of money requested, the lower the interest and, of course, the lower the difficulty to return the money.
It is necessary to maintain a continuous contact with the financial institution or the institution that granted the loan in order to be able to negotiate the extension of a payment period if necessary. Such contact is also important to try to get a much lower interest. In any case, the final objective is always to return the money in the shortest possible time.
In general, the sums of money that financial entities offer for young people are not much different than in people who are already of legal age.
Most lenders grant a sum of no more than 300 euros when it comes to the first application, an amount that may increase as you generate a good track record in your line of credit.