The credit for temporary workers can be summed up in words – the situation is serious, but not hopeless. Temporary workers do not have it that easy with their loan requests. The article provides more on the special situation of lending to temporary workers and solution options.
The loan for temporary workers – the difficulties.
Loan for temporary workers is a delicate matter from most normal credit institutions’ perspective. Temporary workers are always in a special employment contract situation. No matter how the contract is structured, one thing is certain. Whoever has to go first is the temporary worker. The increased risk of job loss naturally has ramifications for creditworthiness. At many banks, the loan is rated as a risk loan. This is often not awarded.
If the clerk can still be convinced, the loan amounts are usually very low and the terms are short. The risk is also reflected in the interest and conditions for lending. The interest on the loan for temporary workers is significantly higher than for a comparable permanent employee. In addition, in many cases lenders require residual debt insurance as additional credit protection.
Another important problem is income levels.
Today more people in Germany have a job than ever before. With these pithy words, the effects of wage policy and the Harz reforms are described by the governing coalition. Basically, the statement is true. It is also true, however, that fewer and fewer people can really make a living from their income. Temporary workers in particular are employed at the lowest wages. Wage increases, if there have been any in recent years, were immediately eaten up by the increased cost of living. This means that temporary workers are in the same boat as retirees and low earners. Your income is in the area of the seizure allowance or even less.
However, only the income that is available above these garnishment limits counts for a loan. Whoever earns less does not get a loan. An example illustrates: A single man without obligations should earn about 1030 USD net income in order to be creditworthy. According to German Company, his net income is non-attachable up to USD 1029.99. If maintenance obligations are added, it will be even more difficult. Example: A family with two children, with the borrower as the sole earner. In this case, the net income would be non-attachable up to USD 1849.99.
Those who are just slightly above these numbers have a chance at least with direct banks. Some providers grant installment loans, although only 80 percent of the possible installment amount must be above the garnishment-free limit.
Enough problems, solutions.
The loan for temporary workers is realistic if a solvent co-applicant or guarantor also signs the loan agreement. Loans for goods purchases are realistically possible even without a guarantor. For example, mail order loans, which are also given as a loan to temporary workers. The situation is similar with the loan for the car. The manufacturer banks secure themselves in real terms via the vehicle. They also have a legitimate interest in selling.
Personal loans offer a very good way of being creditworthy as a temporary worker even without guarantors or property purchases. They are also known as person-to-person loans. The contact is established over the Internet. Private investors invest their capital in people they trust.
Even those who earn little, as temporary workers enjoy poor protection against dismissal, can still be trustworthy. The chances of a loan for temporary workers from the private sector are therefore not bad.