Permanent contracts are now the exception and no longer the rule. This affects all areas of employee life. Particularly noticeable is a temporary job when applying for a loan. A loan with a fixed-term contract is difficult to obtain. It is not possible, however. There are some strategies to convince the bank of the lending. Further editorial at opflsoft.net
Loan with fixed-term contract: When is the term critical?
Most borrowers understand why banks are reluctant to lend a fixed-term contract. There is a risk that no income will be generated before the complete loan repayment. But this also has a positive side: Temporary contracts are not generally an exclusion criterion. It depends on the term. The simplest example: If the contract runs longer than credit, you can easily get the loan.
In general, if your employment contract ends at the latest one year before the end of the planned repayment period, you will receive the loan. Now the unemployment benefit I would close the gap. It is critical if there are at least two years between repayment and contract termination.
Loan with fixed-term contract: differences according to qualifications, occupations and sectors
Some people get a loan with fixed-term employment easier. Banks differ according to qualifications, occupations and industries. Academics are more likely to receive a loan than an unskilled person. Some professions are so in demand that lending is easy. Examples would be tax consultants or computer scientists. In general, there are also some industries where labor shortages exist. Banks assume that you will always find a new job if you work in these industries. An example of such an industry is the care sector.
In return, there are some critical jobs. For example, academics working on fixed-term contracts at universities find it difficult to obtain a loan. Also the retail and catering are critical. The same applies to occupations with unclear qualifications. These include, for example, editors, online marketing managers or consultants.
So you get a loan with fixed term contract
Ideally, you have a very high income. If your credit rating is strong, banks look beyond a fixed-term contract. Even if the end of the repayment and the end of the contract are far apart. If you do not have a high income, you need to strengthen your credit repayment ability differently.
This is a second person. For example, it can act as a guarantor. It would be even better if the second person takes the credit together with you. In addition, she should, if possible, have a permanent employment contract.
Without second person you have to offer collateral. Suitable for this are real estate, assets or vehicles. The collateral does not have to outweigh the whole loan. It is sufficient if you offset the difference between the end of the contract and the end of the term. If you have even more collateral, however, this facilitates the lending.
Tip: Do not just take a loan with a fixed-term contract
A loan with a fixed-term employment contract usually does not have a high volume. He is usually four digits. Unless there is sufficient collateral against the loan. If this is not the case, you can still get a higher loan amount. Just take two loans. Of course, this is only possible if their credit rating is sufficient to pay the installments of both loans. Positive side effect: The interest rates are lower than for just one loan.