Employment Terms Explained: Learn About Fixed-Term Contracts and Probationary Periods!

In today's fast-paced world, securing a loan, especially with a temporary employment contract, can seem like a daunting task. However, there are several options available that can help make the process smoother.

Firstly, a car loan can be secured with the naming of a second applicant or a guarantor, even with a temporary employment contract. This strategy can also increase the chances of obtaining a loan during the probation period or with a fixed-term employment contract.

Private loans, also known as P2P loans, can be another option. These loans offer more flexible terms as they are freely negotiable.

A disposition credit is usually available even with a fixed-term employment contract or during the probationary period. However, banks may charge higher interest rates to cover the perceived higher risk.

Banks prefer to lend to people with a secure job and high income, as they perceive it as less risky. This is especially true for large loans such as real estate financing, which involves several hundred thousand euros lent over a long period. Additional securities such as savings or an existing property can improve the prospects of obtaining a home loan.

Smaller loans, such as 500€ or 1000€, reduce the bank's risk of loss. These loans can be repaid within the fixed-term employment contract, making them a viable option for those with temporary employment.

Installment payments for a purchase in a store or online can correspond to a loan granted by the seller, with income circumstances reviewed less comprehensively than with a bank loan.

Loans with short terms can be an attractive option for those with a temporary employment contract or during the probation period, as they can be repaid before the end of the contract.

The exact interest rate depends on several factors such as the loan amount, term, and creditworthiness of the borrower. Good creditworthiness, no negative SCHUFA entries, and a high income during the fixed-term employment contract can increase the chances of obtaining a loan with a lower interest rate.

Some banks and specialized lenders offer loans to individuals with fixed-term employment contracts, especially if there is clear financial stability, sufficient income, and positive credit history. Interest rates for such loans can vary widely, ranging from about 3.69% to over 14.4% annually for consumer loans. Some banks may require a minimum contract duration of 12–24 months for financing approval.

It is important to note that banks do not have uniform credit granting guidelines regarding temporary employment contracts. The chances of obtaining a loan from different financial institutions may vary.

The interest rates for a loan with a fixed-term employment contract cannot be answered unequivocally, but are likely to be higher than for loans granted to permanently employed individuals or civil servants.

It is possible to take out a loan with a fixed-term employment contract, especially for loans with lower loan amounts or short terms. A thorough credit comparison is recommended to find the best loan options.

With a loan with a guarantor, another person assumes the guarantee for the loan and commits to standing in for the borrower in case of payment difficulties. This can increase the chances of obtaining a loan, especially for those with a temporary employment contract or during the probation period.

Lastly, it is fundamentally possible to obtain a mortgage with a temporary employment contract, but additional conditions must be met such as contributing personal capital, having a high income, and potentially having a second borrower.

Credit interest rates are currently decreasing due to the interest rate policy of the European Central Bank. This trend could potentially make it easier for individuals with temporary employment contracts to secure loans.

In conclusion, while securing a loan with a temporary employment contract can present challenges, there are several strategies that can increase the chances of success. Offering to take out the loan with a second person or naming a guarantor, applying for loans with lower loan amounts or short terms, and maintaining good creditworthiness are all important steps to consider. A thorough credit comparison is recommended to find the best loan options.

Employment Terms Explained: Learn About Fixed-Term Contracts and Probationary Periods!