A loan with a temporary employment contract is not granted by every credit institution. Despite difficult signs, a loan with a temporary contract can be approved. The article deals with credit opportunities, obstacles and possible solutions.
Loan with temporary employment contract – problem
A loan with a temporary employment contract is only supported by a few loan providers. The negative attitude is due to the changed framework conditions. About 25 percent of all employees in Germany work in “precarious” employment relationships. Work as mini-jobbers, top-ups, temporary workers and temporary employment contracts are rated as precarious. None of these employment relationships can offer an income that can be considered sufficiently high and at the same time secure.
In the case of temporary employment contracts, it is not necessarily the amount of income that excludes lending. The problem of secure repayment ability arises from the time limit and thus the expected end of the employment relationship. The initial situation does not improve by the proof that it is a chain contract.
Chain contracts are particularly widespread in the public sector. Massive austerity measures have meant that urgently needed jobs cannot be created. Even existing vacant positions cannot easily be filled permanently.
Installment loan despite temporary employment contract – how it works
A long-term installment loan with a temporary employment contract is therefore ruled out. However, a short-term loan with a temporary contract is possible. It is important to apply for a credit contract as soon as possible after the extension. It is also necessary to reconcile the end of the term with the time limit. Solvency is proven by the income.
The loan is paid back together with the end of the employment contract. There is no reason to refuse a small loan under these conditions. The affiliated loan comparison leads you to particularly low-interest loan offers, which are also possible under the conditions mentioned with a temporary contract. Larger loan amounts and longer terms can also be realized through the guarantee of a solvent guarantor.
The offers of the department stores offer a further fair chance of obtaining an installment loan despite a temporary employment contract. A goods or mail order credit is primarily intended as sales promotion. Such an installment loan can be applied for with a clean Credit Bureau and proof of work income.
Other credit options despite a temporary contract
If you have a regular income from work, you almost always get an overdraft facility from the house bank. Many credit institutions even automatically grant the loan with a temporary employment contract, as an overdraft facility. A further uncomplicated alternative can open up the financing of the credit request via the credit card’s credit limit. If the credit line used is to be repaid in small steps and not in one sum, a simple application is sufficient.
The last alternative presented, to get a loan despite a temporary employment contract, can be found outside the commercial credit system. Loans from private donors are not linked to complicated lending rules. A private investor is free to decide to approve the loan with a temporary employment contract. Knowledge of the problems of chain contracts, a well-presented loan request, opens up fair opportunities.