Basically, there is the possibility for temporary workers to take out a loan. However, there are some peculiarities that lead to banks’ reluctance to lend. As a temporary worker, you should also be reluctant to borrow. There are currently around 1 million temporary workers in Germany.
Banks want to do business. The credit business is extremely lucrative for banks. You will not simply ignore such a large customer group. On the other hand, loans for contract workers mean an increased risk of default.
Risks for banks and agency workers
It may seem strange at first glance, but from the perspective of the banks, there are similar risk factors as for the self-employed, especially for small businesses. Even in the case of open-ended temporary employment contracts, the remuneration can vary or be completely omitted in the event of termination.
For employees in other sectors or for civil servants, on the other hand, monthly payments can be planned and are sustainable. In addition, the employment relationship is generally safer than with temporary employment contracts.
Banks react fourfold to an above-average credit default risk if a loan is granted at all:
The amount of credit granted is limited.
The effective annual interest rate on the loans is higher.
The possible terms are shorter.
Additional collateral is required.
If the temporary employment relationship is limited, this means additional increased risk for the bank. Banks have to assume that a follow-up employment relationship will not be found immediately.
The term of the time limit must, therefore, be adjusted. The term of the agreed loan must expire within the time limit. The greatest risk for contract workers is to over-finance themselves.
The payments from temporary employment contracts and their sustainability cannot be calculated as reliably as the salaries of other employees.
For example, the salary can drop to the basic amount if the agency worker cannot be employed by a hirer. The salary can also change if the borrower is changed.
By reducing income, temporary workers can easily fall into debt if an excessive loan is taken out.
Favorable conditions with the credit comparison from Good Credit
Not all banks participating in the Good Credit loan comparison grant loans despite temporary work.
Good Finance Bank, for example, refuses to grant a loan, while Creditplus makes the award dependent on an individual examination.
Nevertheless, taking advantage of the credit comparison is worthwhile to find out whether you have a chance at any of the recognized direct banks.
You can use the loan calculator free of charge and all offers are non-binding.
You do not influence your credit rating with the credit comparison. The requests for information carried out in the context of the comparison are neutral.
Banks do not offer special loans for temporary workers. Temporary workers can take out normal installment loans.
Set the filter to the desired loan amount and the desired term.
Don’t forget the purpose. Purpose-linked loans such as car loans or modernization loans (residential loans) can be cheaper in individual cases than loans for free use.
Professional advice from the credit broker E-Money
In addition to the Good Credit loan comparison, there is another option for you as a temporary worker to obtain loans from direct banks.
Our recommendation, E-Money, is a market-leading credit broker from Halle / Saale. As with Good Credit, credit inquiries are free and non-binding. There are no preliminary costs.
E-Money’s financial service is virtually the same as a credit comparison.
One difference is that requests are not processed automatically, but manually.
The advantage: special requests and the individual circumstances of the credit customer can be better addressed.
You can get comprehensive advice from a loan officer. When it comes to difficult loans and temporary agency loans fall into this category, this can be very beneficial for the credit customer.
We particularly recommend E-Money because the loan broker is known for its excellent services.
Temporary loan: how do I improve my chances?
The following tips do not only apply to a loan request from direct banks or credit intermediaries. You can also increase your chances of getting a loan from your house bank or another branch bank.
These instructions are actually particularly useful for you if you, as a temporary worker, present yourself to your house bank for a loan.
At your house bank or another branch bank, you have direct personal contact with the responsible loan officer.
This gives you the opportunity to present your personal and economic situation in detail and to negotiate the general conditions for a loan with the clerk.
Direct banks, on the other hand, tend to grant loans according to rigid lending requirements, because lending and checking the lending requirements and creditworthiness are largely automated.
There is, therefore, less space for thorough individual case examinations. But that does not mean that an online loan application is hopeless from the start.
As the Creditplus example above shows, some direct banks also conduct a case-by-case assessment.
So here are a few tips :
Apply for the loan with another person, preferably your spouse. An additional borrower always increases the loan opportunities, provided that the co-signer can contribute something to the overall credit rating.
This means that the co-signer should have a good bank score and be able to show regular income.
Applications with two borrowers are almost loved by all banks, especially direct banks on the Internet. In addition to assignments, the signature of the contract is often the only security that direct banks accept.
Some direct banks do not grant loans in the amount of more than 10,000 dollars unless the spouse or another person living in the household of the first signatory does not sign.
However, there are disadvantages to borrowers. The co-signer’s creditworthiness is “preloaded”. Problems may arise in individual cases with a further loan.
In addition, the co-signer is liable as well as the first signer. The bank has two borrowers, who are liable for the entire amount at the same time, and which the banks can access immediately in the event of payment failures.