Caring for the home and children is a full-time but unpaid job. Totally financially dependent on the husband, how can a stay-at-home mom get credit?
Raising a single child, a permanent challenge
Without income, let’s be clear, credit is almost impossible. No need to think of a mortgage. On the other hand, depending on the project to be financed or the guarantees presented to the lender, it is possible to manage otherwise than by conventional credit. Despite the difficulty, some small specific credits remain accessible.
our article on credit to two, the choice to make a credit in couple or not depends on the marriage contract. Without a contract, the couple is jointly and severally liable for all debts, except those that have been fraudulently contracted, in the back of the spouse, or for the sole benefit of the borrower. In separation of property, one can make a credit alone, not engaging the spouse.
We must not forget that many women, finding themselves alone after a divorce, are condemned to pay a credit they can not repay! It is better to read the article “debts of the former spouse” before embarking on a credit, even if “we trust”.
Banks are free not to accept alimony in the calculation of income when granting a credit. When we know that 40% of the support payments are not paid, the risk for a bank to have unpaid credit is far too great.
It is therefore pointless to think that long-term credit can only be obtained with alimony, an income that is not considered stable. In addition, alimony lasts only until the financial independence of the children. Difficult to obtain a mortgage for more than twenty years in these conditions.
For women who have difficulty recovering their child support, there is the ARIPA, the Unpaid Alimony Recovery Agency. This agency, created in 2017, gives a little more security to mothers living thanks to alimony, and probably a little more security to banks.
In the end, it is up to the bank to assess the risks , and decide if it decides to take into account the alimony. If the alimony has always been paid ruby on fingernail for several years, trust may exist and the bank might consider it as income. One thing is certain: alimony can not be the only source of income for the credit applicant, it should be considered as a “bonus”.
Get a credit with a compensatory allowance
The compensatory allowance after a divorce is, in the vast majority of cases, paid in one installment. This is a sum of money to “compensate” the spouse who sacrificed his career for the benefit of the couple and children.
Not being recurrent, this capital can not be used to obtain a credit, except to consider it as a contribution, in addition to regular income.
There are life-time compensatory benefits paid exceptionally to people who are too old or unable to support themselves financially. These people, who are too often sick, will not be able to obtain a long-term credit in view of their condition.
Get credit with RSA and allowances
For moms whose children “do not have a father”, and therefore no one to help when needed, obtaining a credit, with no work or stable income is mission impossible. Here, only the RSA, family allowances and LPAs help the homemaker stay out of work.
These are people who survive, but who would like to get credit to improve their lives. In short, banks will not lend money, except perhaps a small revolving loan. However, it is still possible to take advantage of some assistance that will replace credit, including the Social Accession Sure Loan: this loan can be paid through APLs, giving the opportunity, even to the poor, to pay a mortgage rather than ‘a location.
Our article on CAF support and single parent allowances. In summary :
- The main support is an RSA supported by a supplement, ” the family support allowance “, amounting to slightly more than a hundred euros per month. The RSA may be increased.
- For housewives looking for a job, there is the GEpia , a child care aide.
- The CAF can also pay the retirement contributions of the housewife who stopped to care for the children: it is the old-age insurance of the stay-at-home parent .
- Finally, for parents who have a child under 3, there is the ” free choice of activity supplement “, reserved for those who have already contributed to old age insurance.
For widows under the age of 55, there is ” Widowhood Allowance “, an allowance for the surviving spouse with low incomes. This allowance lasts as long as the conditions are met, within a maximum of two years.
Homemaker can still get financial help
Obtaining a credit for a “solo mom” depends on her financial situation in the first place. A young dynamic executive with a good salary and permanent contract will not have the slightest problem to obtain a credit. On the other hand, a mother who raises her children alone and is unemployed can only depend on social assistance to finance daily needs.
Women who have chosen to have a child alone are aware of the risks they face. They know they will have to work twice as hard to give their child the best. If by chance they lose their job, without a father to help, situations can quickly become dramatic. France, with its social security system, can limit the damage, even in case of over-indebtedness. .
In contrast, most solo moms are not by choice. An unwanted pregnancy, a widowhood or a companion in prison are unfortunately all too common examples. The CAF thus helps families, including single parents, with the child’s primary purpose being the well-being of the child. As such, it simplifies the obtaining of credits, necessary for the purchase of essential things in a family: furniture, appliances. It also helps with APLs, which can be used to pay rent, or pay off a home loan.