Anyone who wants a loan despite a fixed-term contract will be disappointed. The banks see no security in a temporary employment contract, because what happens after expiration, no one can predict. A loan is therefore almost impossible. However, under certain conditions, there is still money from the banks.
When a loan is possible
Many people start a new job with a fixed-term contract. However, there is a danger that the employees will be on the street after the end of the fixed-term employment relationship. Not always on a temporary employment contract also a permanent position.
For this reason, the risk of default on a loan is too long despite a fixed-term employment contract. The result is that a loan is denied. Nevertheless, the loan seekers do not need to give up hope. There is certainly a possibility for a loan if certain criteria for a loan commitment speak.
Among other things, this means that the loan amount is so low that the loan can be repaid within the fixed-term employment relationship. Fortunately, borrowers in Germany have the option of freely choosing the amount of installments. Accordingly long or short is the term. If a loan is repaid despite a fixed-term contract within the period of employment, this may lead to a loan commitment. However, this means for the borrowers that they have to limit the amount of the loan or have to dig deeper every month, because higher installments have to be paid.
Credit from abroad?
In Germany, when banks refused credit for creditworthiness, many borrowers moved to foreign banks. Known for this is the “Swiss Credit”. Meanwhile, the circumstances have changed, so there is only one bank in Liechtenstein that still offers this loan.
For a commitment certain conditions must be met. A permanent employment relationship is therefore essential. If you only have a temporary employment contract, you do not have to hope for a loan from abroad. The supposed borrowers have to prove a permanent job. This is done by sending a copy of the employment contract. In this, however, the term of the employment relationship is recorded, which leads to an immediate cancellation.
If you absolutely need a loan, you should either be able to repay it during the time limit or you can do without a loan altogether. The unemployment benefit or Hartz 4 is not enough to be able to pass on the installments to the bank. This only leads to financial chaos and then inevitably leads to a bad credit rating.