If the boom in agency workers is also declining, studies show that more and more workers are only being given temporary contracts. We are not talking about one but several in a row. The employee has not only lost the ability to plan his living conditions, but also sees no prospect of permanent employment. Banks react to a permanent employment contract like unemployment or a trial period. The consequence of a car loan without a permanent employment contract faces several hurdles.
Find the right loan
If the employee only wants to take out a small loan, the term of which is shorter than the time limit specified in the employment contract, there could be chances of being approved. If everything goes smoothly, the loan is paid if unemployment occurs. It is just as promising if the loan has a longer loan term than that of the fixed-term contract, because the employee could count on unemployment benefits after the end of the fixed-term contract.
The income is 60% of the last net income. If the loan installments were set in the beginning so that they can also be paid in the event of unemployment, the bank is ready to approve a car loan without an open-ended employment contract. However, if the employee has different ideas about the amount of the loan than the bank, in most cases a second borrower must join the loan agreement.
A lot can be done in the search for the lender. Most employees express their desire for credit with their house bank, with which they have long business relationships. All accounts are managed there, possibly also the real estate loan. If you now carry a car loan without a permanent employment contract there, you will usually get a rejection.
However, conditions are also imposed on the second borrower, which he must absolutely fulfill. In the case of banks, this is always the income that has to be sufficient and the clean Credit Bureau.
If the loan seeker is single, he also has bad cards. If you are married and have a partner who has a full-time job, the chances of getting a car loan without a permanent employment contract will increase again. Banks want collateral and they don’t see it if, for example, the borrower has a fixed-term contract of one or two years.
If two borrowers provide the loan, the bank will particularly examine the second borrower. The Credit Bureau is queried by both and must be clean. In turn, negative entries result in a loan rejection. If the bank approves the car loan without an open-ended employment contract, both borrowers must sign the loan agreement on a bank date. All important details are explained and explained, and the second borrower is also informed about his liability for the loan.
This form of credit entails joint and several liability, which means that the liability remains until the loan is fully repaid. This means even if the marriage should be divorced or a community ended. It may also be possible that the bank requests the vehicle letter and remains with it until the loan is paid. The borrower cannot then sell the car.
Do direct banks or credit agencies provide the solution?
Of course, the loan seeker can also turn to one of the many direct banks on the Internet. These banks also offer cheap financing for a car. But direct banks also rely on security and good creditworthiness. This is made up of faultless Credit Bureau information and a good income. If you have a fixed-term contract, you have no good chance of finding favorable credit conditions.
A car loan without a permanent employment contract will not exist at the direct banks either. The car bank is also very cautious. These can also be found on the Internet and do not finance a car under these tense conditions. Loan agencies are very suitable for difficult loan cases. But these are also aimed at the smallest credit risk. They also check the customer’s creditworthiness, which includes an open-ended employment contract.
In addition to payslips and bank statements, credit intermediaries also want the employment contract to be presented. From this it can be seen, however, that the contract is limited, which makes it impossible for the credit intermediary to find a car loan without an unlimited employment contract.
Credit marketplaces are increasingly coming to the fore when looking for a loan. What started in the United States 10 years ago has come through here. These portals are also known for providing peer-to-peer credit. Private investors lend money to loan seekers. A bank working in the background is only responsible for the contracts, as well as the payment and repayment of the loans.
Credit Bureau also has a primary position in private loans. This may have harmless negative entries, such as an unpaid invoice, but no serious entries such as attachments or enforcement notices. These serious features make registration impossible.
The credit market places do not need a credit check, so that even with a good Credit Bureau loan seeker with limited employment contracts have a chance of a loan. If the customer is admitted to the credit marketplace, he creates a profile and extremely trustworthy and understandable his credit request. This is how he should indicate his family and financial situation.
If there is a lender who can be convinced of the profile, the loan can come about. Since a car loan is usually sought with a higher loan amount, the project will take some time. The loan is paid out when the loan amount has been fully financed,
Banks give nothing to hopes and expectations, the employer extends the contract or not. For the banks, the unemployment scenario moves to the fore after the time limit ends. Can the loan continue to be paid if there is unemployment? Can a second borrower be named? Of course, this significantly limits the chances of getting a loan.
It could still work with a loan: if the loan term is shorter than the time limit, there are no problems in the way. In individual cases, the loan term can even be longer, since employees can count on unemployment benefits. So the second borrower could dispel the concerns of the banks. Therefore, the car loan without a permanent employment contract without careful planning.