A loan without an indefinite employment contract is difficult to obtain. One of the basic requirements that banks demand for a loan approval is the permanent employment contract.
The income stated in the employment contract gives the bank the necessary security that applicable installments can also be paid. Therefore, loan seekers must expect difficulties in the loan commitment.
The most important thing – read quickly
- Although the permanent employment contract is mostly required, the credit system offers alternatives
- For which credit you qualify, the smart software will tell you
- Apply for this – just now – your desired loan
- The software checks in real time and offers suitable solutions
Credit without permanent employment – situation
Temporary employment contracts are no longer uncommon today. Even in the higher professions these types of contracts are applied.
Consequently, the employee who has to work with a fixed-term contract does not have the best plan security for his future. Most of the time he does not know whether he will be taken over after the time limit or whether a fixed-term employment contract will follow shortly thereafter.
Now, if a loan is needed, borrowers have to pay attention. Banks will closely check the customer’s details. Normally, credit seekers receive a loan if they can demonstrate sufficient and regular income from a secure and permanent job.
The Private Credit is also not to forget, she plays a major role in a loan request. Anyone who has negative entries in the Private Credit, not only has difficulty obtaining a loan without an indefinite employment contract, but the burdened Private Credit also prevents a credit commitment.
Credit without permanent employment contract – fixed term
There are some lenders who do not require an employment contract when lending. Then, loan seekers have a better chance of getting a loan.
However, credit seekers in the loan application must provide information about the employment relationship. Anyone cheating here and not stating that he has a fixed-term employment contract can get away with it first.
But if the time limit ends and the loan can not be paid anymore, because the customer was not taken over and therefore is unemployed, the legal consequences may follow. Even if the customer is still of the opinion that the credit installments can be paid, a completely different picture can emerge in an unemployment.
Therefore better to play with open cards.
Credit without permanent contract – collateral
Banks certainly provide a loan for a limited-term employment contract. But he must be able to be paid within the time limit.
This would be possible if the time limit is set to, for example, two years and only a small amount of credit is required. But at higher credit sums then often fall to high credit rates, the credit seekers then can not pay. But there are ways to hedge the loan with so-called collateral. If the customer wants to finance a car with the loan, he can use the car as collateral.
For this, the vehicle registration document is deposited with the bank. If the installments can no longer be paid, the bank will collect and sell the car. If a loan seeker real estate, a lenderable insurance or other savings, so these can also be used as collateral for the loan without permanent employment.
Credit without permanent employment contract – guarantee
In addition to the so-called insurance, a guarantor can also secure the loan. But this guarantor must be solvent. This means he has a sufficient income, which comes from a stable and secure employment. In addition, his Private Credit must be positive and his liabilities manageable. The guarantor must be mediated, it comes to a loan default on the part of the borrower that he then has to pay the loan on. But he can only if his credit rating is excellent.
In addition, a guarantor should know that the guarantee appears in his Private Credit. As a result, its own credit rating can be lowered. If he needs a loan himself, he may not receive one, since the guarantee is treated like a loan. Therefore, a guarantor should always remember that a guarantee is absolutely no small proof of friendship.
A guarantee may possibly lead the guarantor to financial ruin. Nevertheless, you should still help a loan seeker under the arms, especially if he wants to build his life and the conditions are perfect for it. As guarantor one could then imagine the parents or grandparents.
Unlimited Employment Contract – Find Lenders
If you have a fixed-term contract, you will not get a loan everywhere. Banks this contract is too uncertain, since he gives no guarantee whether the customer will continue to be employed after the time limit. Nevertheless, customers should make a credit comparison to look for a cheap provider. In a credit comparison can also be determined immediately which conditions the lender requires.
Customers are advised to name any collateral right when applying for a loan. So there are no unnecessary credit denials. There is a need to look for a lender who will provide a loan without an indefinite employment contract with the presentation of collateral. In addition to the interest rate, the size of the credit installment can also be seen in the credit comparison.
With the appropriate term, this can be adjusted to the income. Thus, a long term low rates, the credit is a bit more expensive, but remains affordable. Short maturities bring high rates, but not everyone can afford. Here should be looked closely.
Credit without permanent contract – what documents?
Whether it is a fixed-term or non-permanent loan, clients must prove their creditworthiness. This usually requires the last three salary statements and bank statements from the same period. Some lenders also want to see a small budget statement. It lists the revenue and expenses.
A copy of the employment contract does not require all lenders. The customer learns when he asks for credit. By the way, in case of a difficult credit, it is recommended not to apply for a loan immediately, but rather a loan request. More frequently rejected loan applications can worsen the customer’s Private Credit.
Loan seekers also have a better chance of getting a loan with a fixed-term contract if the job is in high demand. If the contract is not renewed, it can be assumed that workers will find a new job more quickly.
Customers with a bad Private Credit, can usually resort to the Private Credit credit. In this case, this is not possible because one of the basic requirements for this loan is the firm and secure employment.