A major purchase is imminent and you want to secure financing with a loan. In such a situation, it is certainly not wrong to get an approximate idea of the expected maximum loan amount.
This will make it easier for you to make a loan inquiry, which you can best submit to a credit comparison portal in order to actually get cheap offers.
Two questions should be answered:
How much credit can I afford with an income of 1700 USD net and how high will the loan be that banks will probably grant me. You can easily answer the first question yourself by drawing up a household bill. Answering the second question is much more difficult.
Banks are reluctant to look at their cards, i.e. their lending guidelines. How much credit you ultimately receive from your bank can only be determined from a specific loan offer after you have made a loan request.
How much credit can I afford?
The question is about the maximum loan amount that you think is possible with a monthly salary of 1700 USD. The bank may come to other results.
More precisely: It is about how high the credit rate can be without seriously endangering the standard of living.
An internal budget statement creates clarity. You can make your work easier by using a household calculator on the Internet.
The Credit with Responsibility website provides a comprehensive household calculator. Here is a screenshot.
If you open the link to the free household calculator, you can enter your individual data in the fields provided and have your freely disposable income calculated automatically.
Open all fields to not forget anything.
Before you enter the amount of your income, you should decide whether you want to make the planned loan application alone or together with a co-applicant, for example with your spouse.
Enter the family income if the loan request is planned together with the spouse.
Many direct banks only accept joint applications if the loan amount exceeds a certain amount. Co-signing is often expected for loans from 10,000 USD.
Relevant income is all regular income from any job. One-off payments such as special commissions are not included. The same applies to social benefits of all kinds. Child benefit is an exception.
You will only get realistic results if you are honest with yourself when it comes to spending.
After you have completed the budget calculation, you should carry out another check. This is done using the currently valid attachment table.
If you are not subject to maintenance for any other person, the attachable amount is USD 364.99.
If you have to provide for a person liable for maintenance, this amount is reduced to 38.92 USD. This situation can occur, for example, if you are the sole earner in your family or the family income is 1700 USD.
There is no attachable income available for further maintenance obligations.
The income that is not subject to attachment serves to secure livelihood. It shouldn’t actually be used to pay a loan.
Apart from that, a bank will not issue a loan where the credit rate significantly exceeds the attachable income. In any case, this applies to free installment loans that are only secured by assignments.
How much credit does the bank give at 1700 net?
Without taking other factors into account, banks often calculate the maximum loan amount as a multiple of net income. With a net salary of 1700 USD, the credit limit should be between 17,000 and 25,000 USD.
However, this amount is far from being granted to every borrower. The central point is the freely disposable income with which the loan installment can be paid.
Some banks use the information in the credit request to calculate the disposable income. If this happens, the bank will come to a similar result to yourself.
Other banks set lump sums for housekeeping costs in their lending guidelines, which they periodically adjust to changes in consumer prices.
Since the lending guidelines of the individual banks are not published, it is not possible to make general statements about lump sums.
The lump sums are probably between 600 USD and 800 USD for the first person in a household and around 200 USD for each additional person.
The total housing costs must be added to these flat rates if a normal installment loan is applied for.
Installment loans are not granted if there is no attachable income at all.
In addition to economic performance, other creditworthiness criteria also play a role. The score that commercial credit agencies such as Credit bureau determine is particularly important.
Living conditions are also taken into account, for example:
- Does the applicant live alone or does he have a family?
- Which profession is practiced?
- How long has the applicant been with his employer?
- Is the applicant active in a crisis-proof industry?
- Is regular income expected over a longer period of time or not?
Workers in crisis-proof industries who have been with a particular employer for years have better chances than contract workers.
Civil servants and civil servants have better credit opportunities than freelancers or traders, whose income can fluctuate widely.
Finally, the bank takes into account which loan option is being applied for.
In the case of earmarked loans, such as car loans or home loans, additional collateral is customary in addition to a salary assignment. Assigned loans often have less stringent lending requirements.
In the case of real estate loans for owner-occupied residential property, for example, the costs of the rents are partially replaced by the financing costs. Therefore, lower household flat rates apply.
How much credit do I get with 1700 net? Sample calculations
The examples can give an indication of the maximum loan amount. However, specific loan offers can even differ considerably from the calculations.
The reasons for this are the business policy, which varies from bank to bank, and deviations in the actual annual interest rates actually offered.
The current average interest rates result from the statistics of the Agree bank on the effective annual interest rates for loans to consumers for consumption purposes.
The statistics are adjusted at regular intervals to reflect current interest rate developments.
A family with a total income of 1700 net per month and a child who is dependent on maintenance will have to limit himself to small loans under 10,000 USD with reasonable terms.
A single person without maintenance obligations who earns $ 1,700 net per month will receive loan amounts between $ 10,000 and $ 25,000 depending on their creditworthiness and the chosen terms.
In both cases, it depends on how the banks’ budget accounts turn out in individual cases. Pre-liabilities, for example, reduce the disposable income in addition to the household and housing costs incurred.
From the borrower’s point of view, the rates should not be higher than 100 USD (family income) or 400 USD (single person). Otherwise the standard of living would be endangered.
Credit without Credit bureau with 1700 USD net
Credit bureau-free loans are granted via loan amounts of USD 3,500, USD 5,000 and USD 7,500.
For loans without Credit bureau, the income of an applicant is always important. Joint applications are not possible.
The minimum income required depends on the tax bracket and the children who are dependent.
If you pay tax on classes 1, 2, 4 and 5, you can apply for 3500 USD if there is no maintenance obligation. If there is no maintenance obligation, you can also apply for 5000 USD with these tax classes.
If you pay tax in class three, you cannot apply for a Credit bureau free loan. Even 3500 USD are not possible.
Perform credit comparison
The examples above give an indication of the maximum loan amount to be expected. So you can assess in advance whether you can finance the planned purchase or the planned project.
You can only determine how the credit opportunities actually stand and on what terms lending is possible in your specific case on the basis of loan offers.
The easiest way to get the cheapest loan is to use a credit comparison.
Enter the desired loan amount and the envisaged term in the calculator. Don’t forget the purpose.
The conditions for car loans, for example, are often cheaper than for installment loans that are not earmarked.
If you click on the button, you will be forwarded to an application form.