Credit with a time contract

When you start with a new employer, it has become completely normal for them to first issue a temporary employment contract. After all, he wants to get to know the new employee better first and not tie himself to them for an indefinite period. The temporary contracts are part of our everyday life and affect many employees. However, they can become a problem if a loan with a temporary contract is to be taken out. This is not so easy.

The requirements for a loan must be right

The requirements for a loan must be right

In order to take out a loan from one of the traditional banks in Germany, you have to be able to meet many requirements. So you have to be able to present an employment contract that is unlimited. This is not a temporary contract because it is only issued for a specific period. In addition – unlike permanent contracts – it can be terminated without notice without giving reasons.

Nevertheless, you can take out a loan with such a contract. An installment loan will not be possible because the banks want to see the employment contract and then notice that it is temporary. But a consumer loan also works with such a contract. The companies that award them are only interested in having an income. And if the repayment of the borrowed money is arranged in such a way that it is within the time limit, taking out a consumer loan as a loan with a fixed-term contract should hardly cause any problems.

A little help never hurts

A little help never hurts

You can also look for help with borrowing. If the bank encounters the term of the contract for a loan with a temporary contract, a guarantor can improve the uncertainty of the bank with his own permanent employment contract and his good income. The banks will then fully integrate the guarantor into the calculations in the loan.

But he is also liable for the loan and must pay the installments in the event of a delay in payment for the actual borrower. A burden that should only be imposed on close family members or good friends and that every guarantor should think carefully about in advance. Especially when it comes to a large loan amount.

Credit after training

If you want to apply for a loan after your apprenticeship and cannot have a fixed employment contract with high income, you will usually find it rejected at the house bank or car bank. The search on the free financial market will be worthwhile.

Private donors, as well as domestic and foreign banks that do not use the Credit Bureau as the basis for their decision and thus the creditworthiness as a prerequisite for lending, enable a cheap loan after training and create a basis for all applicants. Anyone who still acts flexibly and gets an overview of interesting and cheap offers in comparison will recognize the advantages on the free financial market and rule out wrong decisions.

Apply for a loan online after training

Apply for a loan online after training

After the comparison, you can be directed directly to the donor’s website and fill out a form for application here. The customer’s data, as well as the possible collateral, are requested and must be entered truthfully in the lines provided. The question of the employment contract and the financial background does not arise, the borrower decided to offer a loan after training without an examination by Credit Bureau.

The free financial market is favorable in terms of interest rates, whereby the consumer can also benefit from the general conditions of the loans. The comparison shows which provider offers particularly flexible repayment options and does not charge the borrower any additional fees for a deferral, extension of the term or special repayment. These offers are to be preferred because no applicant can look into the future and provide information on their financial background during the term.

Avoid repayment problems

Avoid repayment problems

The free financial market also needs adequate protection from the borrower for the approved amount. So that the lender does not have to access the collateral and thus have to settle his outstanding debts, a flexible loan should be chosen after the training, thus creating the opportunity to adjust the repayment. The loan can be secured with real assets or insurance for old-age provision. A guarantee or a co-applicant is also accepted and can be liable for the seriousness of the borrower.

Permanent Loan for people without permanent job

A permanent employment contract is deemed to be permanent, so that borrowers with fixed-term contracts, self-employed and freelancers do not have any. Another group of people without permanent employment consists of people who live from successive short-term employment relationships. In addition, the unemployed and students belong to the people without permanent employment.

The income of people without permanent employment

The income of people without permanent employment

Even a loan without permanent employment is offset by income that can be used to repay the loan installments. This fluctuates among freelancers and the self-employed, while workers with fixed-term contracts earn a fixed income until their expiry. Employees who live on changing short-term working relationships generate an irregular income, the average of which is usually sufficient for a living.

Unemployed receive benefits from the employment agency, this also applies to short-term unemployment from day laborers. The concerns of financial institutions against a loan without permanent employment relate to the fact that they generate a different, mostly also low income, or may lose it in the foreseeable future in the case of temporary employment.

If the current lack of permanent employment results from a temporary contract, the easiest way to obtain the desired loan is if the bank refrains from submitting the employment contract, since the time limit cannot be recognized from the payroll. The self-employed and freelancers choose a financial institution when borrowing, which does not limit its loan offers to permanent applicants. In the case of changing income, borrowing without proof of salary makes sense, since in this case the borrower can state the average income.

The alternative to bank loans

The alternative to bank loans

As an alternative to a bank loan, the use of a platform for private loan brokerage is available for a loan without permanent employment. The private lenders registered there are often based on social criteria and the purposes to be specified in the loan application. Applying for installment payments in the mail order business is also possible at any time as a dedicated loan without permanent employment, since most retailers forego the demand for the income or employment of their customers.

In the case of fluctuating monthly income in particular, it is important that the applicant ensures that he can pay the installments on time for each loan taken out, even without permanent employment. The risk of a rate not being paid on time is reduced if the borrower chooses a long term and therefore a low monthly rate.

What is lending a loan without guarantor

A surety is liable for the repayment of a loan if the actual borrower can no longer service it. Financial institutions usually require a surety, so that they can use the guarantor without unsuccessful enforcement measures. Guarantors must not be confused with co-applicants who have the same contractual obligations as the main borrower.

Lending without a guarantor is the norm

Lending without a guarantor is the norm

Most loan contracts involve unsecured loans because the borrower has an income that is reasonably likely to make repayment or provides collateral. The requirement for a guarantee is based either on an uncertain income situation or on Credit Bureau entries, whereby a single soft negative feature does not lead to the refusal of a loan or the request to provide a guarantor with a good credit rating at all financial institutions.

In the case of negative Credit Bureau characteristics, a loan can be taken out without a guarantor by the applicant opting for a Credit Bureau-free loan from Switzerland. Credit applicants with fluctuating income opt for an instant loan without proof of income, stating the correctly calculated monthly average as household income.

After a one-time registration, you can always apply for a new loan without a guarantor via a platform for private lending, the intended purpose contributing to the lending decision by the members registered as lenders, whereas banks usually do not ask for such loans for consumer loans.

Financial institutions prefer the co-applicant to the guarantor

Financial institutions prefer the co-applicant to the guarantor

If there is a need for credit protection by another person, financial institutions prefer to grant the desired loan without a guarantor, but with another applicant. The reason is the extended liability of a co-applicant, which does not differ from the obligations of the main borrower. In the case of several debtors who are equally obliged to pay, the law allows the debtor to collect the debt either from a debtor.

The credit agreement usually provides for a principal debtor, from whose bank details the monthly installments are collected, but the financial institution can contact the co-borrower after a few direct debits. However, a joint and several guarantee can only be realized when the principal debtor’s insolvency becomes apparent.

In addition, in contrast to a joint application for a loan, there is a risk that a court will classify the obligation as immoral. Like the willingness to accept a guarantee, this increases with the degree of emotional bond between the borrower and the guarantor.

Credit with immediate payment without Credit Bureau

 

Credit Bureau not only registers gross breaches of contract for financial obligations, but also all loans granted. In the case of a loan without Credit Bureau, there is neither a request before the loan is issued nor a notification of the payment to the credit protection. The immediate payment means that the lender will instruct the amount to be paid out immediately after accelerated application processing is completed. A guaranteed availability of the money within two bank working days only exists with an instant loan.

Are there Credit Bureau free loans with immediate disbursement in Germany?

Are there Credit Bureau free loans with immediate disbursement in Germany?

The typical loan with immediate payment and without Credit Bureau is the loan taken out in the pawnshop. The pledge loan does not require a Credit Bureau request because it is sufficiently secured by the pledge to be deposited. The mostly small amounts are usually paid out directly in cash at the pawnshop’s cash desk, the pawnbroker only transfers higher amounts of credit to his customer’s bank account. Another option for receiving a loan in Germany with an immediate payment and without Credit Bureau is for recipients of services from the job center. They can apply for an interest-free loan from their clerk if they need the money to purchase essential household items.

Credit Bureau-free loans with immediate disbursement from Switzerland or Liechtenstein

Credit Bureau-free loans with immediate disbursement from Switzerland or Liechtenstein

Swiss and Liechtenstein banks generally grant loans without Credit Bureau, as they are not authorized to obtain information from the German credit protection agency. You often need up to two weeks for loan processing for loan applications submitted directly via them. If customers would like to take out an instant disbursement loan without Credit Bureau in Switzerland or Liechtenstein, they should contact a reputable credit broker. You can recognize the seriousness by the fact that the customer does not charge any upfront costs or ask the customer to take out insurance before approving the loan. Many federal or Liechtenstein institutes offer to pay the loan in cash instead of the usual transfer to a bank account, with immediate payment and without Credit Bureau.

In this case, additional costs arise, while the acceleration of the payment process is no more than one day for Swiss and two days for Liechtenstein financial institutions. The interest is higher for a loan with immediate payment without Credit Bureau than for a Credit Bureau-free consumer loan with a processing time customary for banks. A premium for quick loan processing and disbursement is justified. So that the customer does not pay unnecessarily high interest, he compares several offers with each other before the contract is concluded.

Credit after the trial period – Who can help you

The trial period for a new employment contract in Germany is usually six months and thus corresponds to the period in which the employee-friendly conditions of the Protection against Unfair Employment Act do not apply. An extension or shortening of the trial period is possible, but does not affect the legal protection against dismissal. For this reason, financial institutions generally evaluate an employment relationship within the first half year as a trial period.

After the trial period, the loan application is usually possible

After the trial period, the loan application is usually possible

It is easier for employees to obtain a loan after the trial period than a loan without full protection against dismissal. In the case of classic employment contracts, the employment relationship automatically changes to a permanent employment contract after the end of the trial period if there is no termination. After the trial period, the applicant thus enjoys the high creditworthiness resulting from a fixed contract and can apply for a loan from any commercial bank.

Financial institutions recognize that the probationary period has ended on presentation of the proof of salary based on the entry date usually specified there. However, there is a difficulty with a loan after the probationary period, because some financial institutions require that the applicant have been employed by the current employer for at least one year for the loan. When applying for a loan immediately after the trial period, consumers take this feature into account and choose a bank whose lending guidelines allow borrowing immediately after the trial period.

If a temporary employment relationship follows the trial period

If a temporary employment relationship follows the trial period

It is no longer a matter of course today that the employment contract becomes a permanent employment relationship after the trial period has been concluded. Instead, more and more employers equip their employees with successive fixed-term contracts within the first two years of employment. In this case, it is not easy to take out a loan after the probationary period, since the applicant does not receive remuneration from permanent employment and the bank does not consider the contract extension after the time limit to be secured.

On the other hand, even loans with a fixed employment contract are not necessarily secured in the long term, since both parties have a fundamental right of termination. However, the employer may not terminate fixed-term contracts for operational reasons. As a loan after the trial period with an initially limited employment contract, immediate loans without proof of income as well as personal loans brokered via relevant Internet platforms are available. Many private lenders prefer to receive requests from applicants who find it difficult to borrow from traditional banks.

Loan without proof of income

Proof of income is needed everywhere these days. When buying in installments in brick-and-mortar stores, the seller usually wants to see proof of income before concluding an installment contract. Exceptions prove the rule. Sometimes it is enough to just show a Maestro card. But that is not enough for the banks, a loan without proof of income is not granted.

What to do without proof of income?

What to do without proof of income?

Definitely no bank grants a loan without having checked the income situation. Proof of income does not necessarily have to consist of a pay slip. The self-employed and freelancers have no such thing. You must submit balance sheets or profit and loss accounts. These are also considered proof of income. Without income and proof of it, a request for a loan without proof of income is completely meaningless.

The notices from the employment offices or social welfare offices do not count as proof of income because this is not an income. This income cannot be seized, which is why the banks do not lend to unemployed people. The necessary security is simply missing here.

What counts as proof of income?

What counts as proof of income?

In addition to those already mentioned, there are also other proof of income. Artists and other freelancers have to prepare a profit and loss account for the tax office anyway. This also applies to the banks as proof of ownership. If a consumer now lives from renting or leasing his private or commercial property, the account statement counts as proof of ownership. As a rule, money goes into the account every month and this income from rentals and leases is corresponding income.

Why is income so important?

Why is income so important?

The income can be seized within the statutory limit. An attachment is the creditor’s last resort to getting his money. However, this is the absolute emergency, which of course is also reported to the Credit Bureau. Anyone who has such an entry will not get more money lent anywhere.