Credit and age: when and why age can affect taking out a loan

When a lender decides whether to grant a loan, the applicant’s age can play a decisive role. Below we explain at which age a loan is not possible and in which stages of life a loan can still be taken out, but additional conditions apply because of age.

Loans cannot be granted if applicants:

– Are under 18: loans are only granted to adults.

– Are over 70: pensioners older than 70 are no longer granted loans.

In these cases the applicant’s age therefore decides directly whether a loan can be granted. There are, however, further situations in which age influences the loan application.

Further effects of age on taking out a loan

– Possible restriction of the loan term for pensioners: pensioners must be able to repay the loan before their 70th birthday, which can limit the usual maximum term of 84 months.

– Stricter rules for young adults: to protect younger people, some banks apply stricter criteria until the 25th birthday. Others, however, still offer loans without restrictions if income is suitable and employment with the same employer has been long enough.

Special conditions for pensioners

Pensioners can no longer take out loans from their 70th birthday, but special conditions already apply some years before that. In principle, pensioners can take out loans with terms of up to 84 months. They must, however, be able to repay them before their 70th birthday. The available term can therefore be limited so that it ends before the 70th birthday.

At Mutuo Gruppe.de, pensioners receive the lowest interest rate in Germany. On our page Loan for pensioners you will find more information, can calculate which loan terms are realistic for you and submit an application directly.

Protecting younger people

To protect young people, lending to minors is prohibited. Even after the 18th birthday, stricter rules still apply to prevent over-indebtedness. By law, no targeted advertising may be published for under-25s. Until the age of 25 it is also harder to obtain a loan, so the chance of approval is lower.

Conclusion

Depending on your stage of life, you should keep the following points in mind when applying for a loan:

– Pensioners should not wait too long before applying, so that a loan on suitable terms is still possible. Forward-looking planning avoids the term being cut back too far before the 70th birthday.

– Even though a loan is legally possible from the age of 18, the stricter conditions until 25 should be taken into account. Some banks approve fewer loans for applicants under 25. Although other banks have no such age restrictions, a first loan for younger people should preferably not be too high.

In both cases an enquiry via a loan broker such as Mutuo Gruppe.de is worthwhile. The advantage is that your application is reviewed and only forwarded to a bank if the chances are good. This way you avoid submitting unnecessary applications at several banks that would be registered with SCHUFA and could harm later applications. You also benefit from personal advice and can submit your loan enquiry online free of charge and without obligation in only 2 minutes.

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