Are you looking for a loan despite a fixed-term contract? So that you do not have to worry about a loan refusal, we have put together the options for you that enable loans without an open-ended employment contract.
Loans despite a fixed-term employment contract – starting point
Free installment loans are almost always only granted under the same conditions. The income must exceed the garnishment exemption limit, the employment contract must be outside the trial period and unlimited. These requirements provide the basis for credit security. The security of the lent capital always has the highest priority for all commercial loan providers. The interest income is always in second place on the scale. Systemically important credit institutions are no longer even allowed to issue recognizable unsafe loans.
A loan despite a fixed-term employment contract is therefore very difficult. The negative attitude of the credit institutions cannot be mitigated by proof of chain contracts. The desire for a self-determined life is humanly understandable. The desire for a loan in order to be able to make a larger investment is understandable, but it is still not approvable.
There are only a few options available to enable an ordinary bank loan with a temporary employment contract.
Bank loan with a temporary employment contract
Despite a fixed-term employment contract, a loan from an ordinary credit institution can only be approved if the credit security can be established. There are, roughly divided, two options. A loan can be approved if a solvent guarantor takes over the credit protection. Its creditworthiness enables long loan terms and also higher loan amounts. Alternatively, high-quality property collateral can protect the lender from default. An example of this would be pledging long-term life insurance.
Without additional collateral, so with the second option, reducing the credit risk can open up opportunities for success. The employment relationship is very secure during the time limit, especially for chain contracts. A loan can therefore be approved if the repayment period is slightly shorter than the remaining term of the employment contract. In order to be able to take advantage of this possibility, the requested loan amount must of course match the maximum payable rate. Accurate, individually reputable figures result from the household bill and the sum of income above the attachment limit.
Alternatives that are suitable for small loan amounts can also be used. For example, a microcredit with a term of 30 days or the use of the overdraft facility would be possible. However, both variants are very expensive. Average overdraft facilities range between 10 percent and 13 percent APR. The short-term loan is currently offered at the effective annual interest rate of 13.90 percent.
Another alternative can be a dedicated loan from a special lender. This loan option is known for a loan despite a fixed-term contract as a mail order company or department store loan. If the loan is to be used for purchasing from a certain group anyway, interest advantages can often be realized. Loans intended for sales promotion are often examined very “benevolently”. The new living room set or the new flat-screen TV can often be financed despite a fixed-term employment contract.
Fair credit opportunities despite a temporary job – private loans
The job market has changed dramatically in recent years. A fixed-term contract is the normal contract for about half of all new contracts. More and more employers, politically supported, are stealing their social responsibility towards the employees. Even the employment office is involved in this development, as a current TV report with an 18-year contract – at the employment agency – proves. At the same time, the guidelines for bank loans were tightened as a result of the financial crisis. Fewer and fewer people are qualified for normal, simple lending.
The alternative is to turn away from the banks’ credit system. More and more people are using the loan from private donors to finance their wishes. Brokering loans from private to private from the “snap idea” has become a serious source of credit for many people. Today’s market leaders and co-initiators of the idea are Good Lender and Capital Lender. The loan application for the loan despite a fixed-term employment contract is published as a loan request on one of the portals.
Private investors, small savers distorted by the negative savings rate, now have the opportunity to check the loan request for themselves. Which criteria you use to evaluate the loan request despite a fixed-term contract is up to you. You do not have to follow guidelines, such as the clerk of a bank. If an investor makes a positive decision, he makes his bid for the loan despite a fixed-term employment contract. If sufficient bids have been received and accepted, the loan will be paid out.