Loan Despite Time Contract
March 16, 2019
Temporary workers do not have it very easy in life. They always have to expect that their contract will not continue and they will have to look for a job. Not only is this fear, the temporary workers often earn only the minimum wage and that reduces the budgetary budget enormously. The story is on vazlda.com
Should an invoice unexpectedly turn up, it will be hard to settle. It would be best to take out a loan, but it’s not that easy. Banks often already reject an application when they hear that employment is temporary.
Hardly chances for banks on a loan
Banks rely on collateral when it comes to lending. Even if a temporary worker earns enough to cover the loan, it is still open whether the employment contract will be extended, the employee will be taken over, or a termination will be given, or the contract will simply expire. This is reason enough for many banks to reject a loan application. However, it does not have to be that far, because temporary workers can receive a loan despite a temporary contract, but only if they prepare well.
What opportunities can be used?
Anyone who has a bad creditworthiness must always try to improve it. This is best done with a guarantee. The customer searches for a person in his family or acquaintance who can act as a guarantor. A guarantor must be able to prove that he has a regular income and also with him the Schufa is checked. If this is positive, a guarantee can be taken.
Another alternative would be to use a life insurance to secure the loan. However, this life insurance can only be taken out by the customer if it has at least a surrender value that is as high as the loan amount. Anyone who can provide one of these guarantees will often be able to seize the opportunity to obtain a loan despite a time agreement.
No collateral available
If the above-mentioned collateral for a loan does not exist despite a time contract, an alternative must be found. So the temporary worker can take out a loan from private. Here, care should be taken to ensure that the loan amount for the loan is as low as possible despite the time agreement. For example, the loan may come from one’s own parents or grandparents. If this is not possible, the loan-interested can take a loan despite a time contract with private individuals on the Internet.
Here, however, should be taken to ensure that, on the one hand, the interest is not too high and necessarily a contract must be set up. In addition to the information provided by the lender and the borrower, this also includes the interest rate, the monthly installments, the term and the loan amount.