The search for the loan with a temporary contract is not hopeless. Of course, various credit options are also available for temporary workers. Unfortunately, the loan request cannot be realized as easily as with an open-ended employment contract. The article reveals what is important, how a low-interest loan can be used, and even an emergency solution.
Credit with a time contract – problem
A loan with a time contract is not an unlimited fulfillable loan request. With almost all low-interest loan offers, credit security is created through permanent income. A temporary contract generates income, but it is only temporary income. At the end of the contract, unemployment threatens. A promised extension or the proof of a chain contract does not improve the credit situation.
The clerk can only make decisions based on facts. Even repeated extensions do not guarantee that the temporary contract will be renewed again. He is therefore limited in his options for action. It is possible for him to provide help through the disposition. Overdraft facilities are usually still within the clerk’s personal decision-making framework. The situation is different with the desire for an ordinary installment loan.
How can an installment loan with a temporary contract be approved?
If the loan with a temporary contract comes from an “ordinary” credit institution as an installment loan, two options open up. The options would not be straightforward to derive credit security solely from income from work. Recognized loan collateral is the guarantee of a solvent guarantor and high-quality property collateral.
Nobody would like to ask a guarantor for help. Not everyone has high-quality property collateral, for example long-term capital-building life insurance. The alternative is to apply for an installment loan with a short term. The maximum term may coincide with the end of the temporary contract. If the employment relationship is actually terminated, the loan is already paid.
With a short term, the amount of the loan is automatically reduced. As a rule, it is a small loan with a maximum loan amount of 5,000 USD that can be financed in this way. Credit institutions that offer such a loan at particularly low interest rates can easily be determined using the loan comparison. The Santander Bank provides an example of a loan amount of 2,000 USD with a term of 12 months. The loan can be taken out at a fixed interest rate of just 2.89 percent APR. The monthly installment remains affordable with almost every income at 169.25 USD.
Alternative credit option despite temporary work – emergency solution
If there is little scope left until the expected extension, a somewhat more expensive financing from the credit crunch could help. When applying for a credit card, there are often very few requirements. Nevertheless, “real” credit cards are equipped with an individual credit limit. Even with a smaller income, this framework is between 1,000 USD and 2,000 USD – provided the school is clean.
The credit card is usually billed once a month. However, partial payment can be requested before this date. This “installment loan on detours” is not cheap. An effective annual interest rate of 14.48 percent is calculated at Best bank, for example. This loan with a temporary contract can therefore only be a temporary solution.