Credit with Temporary Work.

Temporary employment contracts are a phenomenon of our time and are the order of the day in almost every company. Anyone who “only” receives a temporary employment contract today no longer needs to be seen as a negative feature, especially not for a loan with temporary employment.

The options of lending

The options of lending

Banks adhere to three criteria when lending, the first is income followed by a positive Credit bureau query and an unlimited employment relationship. But now that a temporary worker can only have a temporary employment contract, banks grant loans, but the loan amount is based on income.

It is also relevant for a loan with temporary agency work whether the loan seeker has a full-time job or a part-time job. The temporary employment contract in particular could cause difficulties in repaying the loan. If the employee does not take over after the end of his temporary employment contract, the stated income is no longer applicable and there are often payment defaults up to bankruptcy.

Income and other collateral

Income and other collateral

It can also be assumed that the income of a temporary worker is not as high, which means that only a smaller loan can be granted. However, some requirements are imposed for approval. Since income and a permanent employment contract cannot be used as collateral for a temporary loan, many banks require other forms of collateral. The easiest way is a guarantee.

Who can name a solvent guarantor, opens the way to a loan with temporary work. The bank decides whether the guarantor presented can meet the credit security. Usually an income above the garnishment limit is important, but valuables can also be given as security. Eg life insurance or other property. What is very important when granting a loan is the positive Credit bureau information, which ultimately decides on the creditworthiness of the loan seeker.

If the loan seeker is not lucky with his house bank, offers can be searched on the Internet. There are many providers who offer a loan with temporary work. However, the loan amount should be small and matched to the term of the employment contract. The temporary worker should get involved if he has no guarantee of employment beyond his temporary employment contract. In addition, in such a somewhat precarious situation, a loan should only be taken out if it cannot be avoided otherwise. Consumer credit or vacation credit should be put in the back.

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