Bank grants credit with a time contract.

 

In contrast to the past, the world of work has changed dramatically. There are many workers who work on a temporary contract. These workers cannot plan into the future and do not get a loan with a temporary contract. Not only young people are affected by this, even academics or scientists work on a temporary contract.

This often lasts for several years, namely if the time limit is always extended. No perspective regarding future planning can burden many workers. Banks or other donors generally refuse a loan with a temporary contract. Nevertheless, there are ways to raise funds.

The loan with a time contract – the prospects

The loan with a time contract - the prospects

The trend of today shows temporary employment contracts and temporary contracts in almost all professional sectors. Even highly qualified people often only receive a temporary employment contract. Temporary contracts have been designed to create a flexible labor market. If you take a closer look at the condition of a temporary contract, you can also see positive features.

We are thinking of a pregnancy replacement that is concluded with a temporary contract or also in the case of long-term illnesses of employees, an employee with a temporary contract provides the perfect solution. However, there is also a lot of abuse. In July 2012 the BGH already criticized the so-called chain time contracts in the public service.

Some purchases, repairs or renovations can usually not be paid from the financial monthly budget. The normal citizen then goes to the bank and applies for a loan. If he can meet the conditions of the bank, the loan will also be approved. In addition to a sufficiently high income, the bank also requires permanent, permanent employment.

If the employee is unable to present this because he has a temporary contract, he has the option of taking a second borrower or a guarantor into the loan with a temporary contract. The other variant could expire with the time limit. The loan then has a term as long as the time limit lasts. Especially with a small loan, banks are generous with this constellation.

Neither the bank nor the employee knows what will come after the end of the time limit. If the employee becomes unemployed or his contract is extended. The employee receives unemployment benefit if he becomes unemployed, but this is generally lower than his income. The allowance will be just 60% of the last net income.

For banks, however, income plays an important role. This must be sufficiently high and show a garnishable share. There is also an open-ended employment contract that secures the income. Smaller loan amounts that are paid at the end of the time limit are not a problem. Large financing, on the other hand, creates problems.

The overview

The overview

As many workers know, there are long-term and short-term contracts. A manager who works on a project is hired on a temporary contract that lasts until the project is completed. That can be several years. This professional group in particular receives very good income so that high installments can also be paid.

If the project period is set to run for several years, there will also be a loan with a temporary contract, as income is secured in the long term. That can be quite large loan amounts.

However, a different picture emerges if the temporary contract is limited to one year or even several months and the employee “only” has a normal income. Neither the bank nor the employee knows what will come after the end of the time limit. If the employee becomes unemployed or is taken on. There is also the possibility, provided that the employee knows exactly that he will be taken on, by the company to submit a notification.

Likewise, there is a different situation for school leavers. They work for one year on a temporary contract and then start studying. If the student can then use German state funding or other grants, a student loan could be applied for. However, this leads to a completely different credit situation.

In summary, there is the possibility to get a loan with a time contract if the loan is paid off within the time limit. In most cases, however, only a small loan is provided. Larger loan amounts are then only approved with collateral.

The credit protection

The credit protection

If an employee needs a higher loan amount, the loan must be secured as mentioned above. He can then, for example, include a second borrower in the contract. But this is also checked for its solvency, in addition, the Credit Bureau must be impeccable and have a permanent position.

If the second borrower is a pensioner, the pension notification is considered a secure income. However, it is important to pay attention to the age of the pensioner. Parents or grandparents could be named as the second borrower.

A surety is also used to secure credit. The guarantor must meet the same conditions as a second borrower. With his surety he is liable with his assets in the event of a loan default on the part of the borrower and must continue to pay the installments. Most banks require a joint and several guarantee, which equates the guarantor with the debtor. This means that if the borrower no longer pays for the loan with a fixed-term contract, the guarantor must do so; the bank does not even have to carry out a complex reminder procedure.

Many ruins have already resulted from a guarantee. This happens when the guarantor is unable to pay the loan installments. In this regard, the bank will examine the guarantor comprehensively and examine its economic situation.

The possibilities

The possibilities

Temporary contracts affect all professional groups today. Doctors or respected professions are also affected. These are, so to speak, large earners who could pay a loan with a fixed-term contract at high rates. The bank could then also provide a higher loan amount for these people.

Small loans always go to banks. If you are looking for real estate financing, you should wait until the job is permanent. If the bank approves a small loan that goes beyond the time limit, the employee should choose the installments with a view to unemployment in such a way that they are also payable in the event of unemployment.

 

Banks offers a credit during training.

The training prepares for the future profession. Depending on the apprenticeship, it takes the form of a dual apprenticeship in a training company and vocational school or in a vocational school. A first degree at a university or university of applied sciences is also a variant of vocational training, even if most courses do not specifically prepare for a single profession.

The form in which a loan can be taken out during the training depends on the type of training. The applicant must be of legal age in order to borrow during training. The bank may not refrain from this even if both legal guardians agree.

Borrowing while training at a technical college or university

Borrowing while training at a technical college or university

It is easiest for students at technical colleges and universities to get a loan during their training. If their parents’ taxable income is not above average, they are entitled to German State Funding. The resulting payments represent half a grant and the other fifty percent an interest-free government loan while studying at a university. Regardless of the German State Funding connection, students are entitled to a cheap development loan from Litebank.

Even bad Credit Bureau information is harmless for the credit decision, if it is not a registered personal bankruptcy. Visitors to technical schools for vocational training also receive a discounted loan from Litebank during their training. The entitlement basically exists in the last two years of training. Litebank’s training financing does not have to be paid back until the course has been completed, so that the installments do not burden the budget during the training phase.

Some major banks and some regional savings banks or Infrabanks also offer training loans comparable to Litebank promotional loans. The conditions for lending vary depending on the bank, the start of repayments after the end of the training is largely common.

Borrowing during training in the dual system

Borrowing during training in the dual system

If you want to take out a loan as an apprentice during your apprenticeship, you can claim the apprenticeship remuneration as regular income. As this alone is not sufficient to pay the loan installments incurred and to make a living, the trainee states in the loan application further income or the savings from living in the parents’ household. Not every bank takes parental support into account when it comes to household bills.

When applying for a loan, trainees receiving trainees receiving dual vocational training make sure that the bank they select takes into account the performance of their parents in the credit check. You can usually find relevant information on the bank’s homepage. Alternatively, an immediate loan without proof of salary can be taken out as a loan during the training. In this case, the inclusion of parental support in the monthly income seems legitimate.

Loans generally accessible during training

A installment payment agreement in retail can be taken out as a loan during the training without any further requirements, since mail order companies hardly ever ask, and brick-and-mortar stores only ask for proof of income in large amounts. The installment customer must of course make sure that he can service all installment payment agreements made during his training period as agreed. Furthermore, a first disposition credit is available for almost every young person in training as soon as they reach the age of majority. Most credit institutions grant their checking account customers an overdraft facility for regular payments.

As such, not only the training allowance for dual training counts, but also the German State Funding. Subsidies from parents are also included in the calculation of an overdraft facility if they are not paid out in cash but are instead transferred to the offspring’s checking account. A credit can also be taken out during the training via a credit card. Various issuers issue special credit cards for adult trainees and students. They usually combine this with an initial credit line of 1000 USD and grant the installment facility at the young customer’s request.

Another cheap way to take out a loan during training is through platforms for personal loan brokerage. The private lenders registered there draw loan requests from young people during their training phase, precisely because conventional credit banks are hesitant when it comes to lending to them. The prerequisite for organized private borrowing during the apprenticeship is to describe the purpose as precisely as possible, since private lenders base their decisions strongly on this.