HOW IT WORKS ?
What if I have no guarantees?
What to do without a paycheck?
Talking about loans without paychecks or collateral is a very delicate matter today. Following the severe economic crisis of recent years, it has become much more difficult to gain the bank’s trust without offering real, solid guarantees. While in the past, even large sums could be obtained with relative ease, today things have changed. However, there are also other options, namely, offering alternative guarantees to the traditional paycheck . In short, even if you are an undeclared worker or have other income outside of a pension, whether employed or self-employed, you can still apply for financing, even without income guarantees.
The purpose of this website is precisely to help you find your way in this difficult world with the hope that the free material that we will insert weekly can help you obtain financing and satisfy your needs.
Loans without a paycheck – Alternative Guarantees
As we’ve said, the pay slip, the CUD (certificate of income tax) (for self-employed professionals), or the pension slip are the banks’ preferred guarantees. Those who don’t have these can always provide alternative guarantees.
For example, you might own a rental property. This “income” might be considered attractive by the bank, overlooking the lack of income guarantee . In this case, it would be sufficient to show the rental agreement and provide a bank statement proving the tenant’s regular payment of rent.
Another option for quickly obtaining loans without a paycheck is to pledge a financial income . For example, suppose we have invested capital that generates an annual return. Perhaps we don’t want to sell that capital because it’s not convenient, and we still need financing to secure liquidity.
Another clear example of unsecured financing is a non-working woman receiving child support from her ex-husband. In this case, too, it will be sufficient to provide a bank statement and documentation relating to the court order to validate this source of income.
These payroll-free loans are offered by both banks and financial institutions. For the latter, we recommend contacting Compass or Findomestic offices. For banks, we always recommend consulting a qualified financial advisor who can advise you on the best options and, most importantly, which lending institution to choose.
This is because each bank adopts a different internal policy for granting loans to customers. The financial advisor’s job is to analyze our situation and direct our application toward the bank that offers the product best suited to our needs, as well as the bank that guarantees the highest probability of success.
Of course, these are just a few suggestions for finding alternative solutions if you don’t have a demonstrable income through a payslip, tax return, or pension slip. This is just to help you understand that, often, it’s not true that you have no guarantees!
What if I have no guarantees?
There are cases, however, when you have nothing to offer the bank. In this case, there are only two solutions: small loans and loans between individuals (but I also recommend this guide dedicated to loans for the unemployed ).
Small loans are financing options that some banks offer, even without a paycheck, to those needing small amounts of money. In this case, the interest rate will often be very high, with peaks reaching the legal limits set by the Bank of Italy. These products should be considered a “last resort,” meaning they should be considered a last resort for accessing credit. For more information, visit our page dedicated to small loans .
Private loans (which we’ll discuss shortly in a dedicated section of the website) are, instead, loans between two private individuals. In this case, the interest rate is often much more advantageous than that offered by finance companies.
In both cases, however, you can only request small sums of money, which usually must remain under €2,000. These are very small amounts, but in some cases, they can provide relief to those who cannot otherwise access financing.
Loans without a paycheck – Young people and the unemployed
Two categories deserve a separate mention: young people and the unemployed, for whom certain forms of assistance are available. Young people in particular can access loans without a pay slip or collateral, especially if requested for study-related purposes.
In addition to financing options that include a portion of non-repayable capital, on this page we’ve also selected some “honorary loans” offered by leading Italian banks that offer particularly attractive terms and interest rates.
The unique feature of these products is that they offer an extremely flexible repayment plan. Essentially, you draw on the capital, then, once you’ve completed your studies, you’ll have a year to decide whether to repay the capital in a lump sum or start the financing.
What to do if I'm reported as a bad payer
The worst thing that can happen is being reported as a bad payer. Unfortunately, it takes much less than you might think: simply missing a mortgage or other existing loan payment, or failing to pay (or being late for) your utility bills.
In this case, it will be even more difficult to obtain a bank loan, especially if you apply without a pay slip . The reason is simple: banks tend to avoid so-called “risky customers” to avoid the risk of finding themselves with “bad debts” on top of what they already have.
In this specific case, the advice is to rely on a good financial advisor who can thoroughly analyze the situation and guide the client in the most appropriate direction. An alternative is to take advantage of so-called loans between private individuals, as briefly mentioned above. Also worth noting are promissory note loans , which are special types of financing provided following the issuance of promissory notes.
Latest tips and recommendations
At this point, we feel it’s appropriate to summarize everything and offer some final recommendations. Now more than ever, obtaining a loan without a payslip or collateral is extremely difficult. One of the most important aspects in these cases is not having a bad credit history with CRIFF, so you need to be very careful about making regular payments on other existing loans or paying utilities in your name (telephone bills, gas or electricity bills, etc.).
If you’re unsure about which path to take, it’s advisable to consult a good financial advisor who can guide your case in the right direction, avoiding unnecessary waste of time and money.
Finally, one last piece of advice: Before purchasing excessively expensive products, check whether your region, province, or municipality offers any incentives or agreements that allow you to obtain financing without income guarantees.
If there are absolutely no alternatives and you are about to take out a loan without a pay slip or guarantees with very high interest rates (above 15%), check the Bank of Italy tables to ensure that the conditions applied by the credit institution in question are not illegal ( see usurious interest rates ).
If you have any other questions, need advice, or need anything else, leave a comment below!