A loan for agency workers is not that easy to manage. A temporary worker cannot have a license from the banks and that is a permanent job. In most cases, the agency worker has a fixed-term contract.
Depending on the order situation of a company, the agency workers are the first to be dismissed. These are not particularly good prospects for a loan for temporary workers.
The loan for a agency worker – the prospects
When banks approve loans, they want to see collateral. On the one hand there are the income, the permanent job and the clean credit score.If these criteria are met, a loan for temporary workers is also approved. From the point of view of a temporary worker, he must be able to provide other collateral such as income in order to get a loan for a temporary worker.
The bank sees a temporary worker at the level as a person with a temporary job. If the bank approves a loan, it must be paid by the end of the employment relationship. However, if a temporary worker can provide permanent employment, lending is the same as for all other borrowers. In such a case, the term can also be extended.
However, in order for a real credit opportunity to arise, the agency worker should be able to name a second borrower or a guarantor. Both people must be solvent, their income must be high enough and the credit score must be clean. A permanent job is required. Co-applicants and guarantors will be able to provide the necessary credit security. The income of the guarantor has a separate calculation, the income of the co-applicant is added to the income of the agency worker.
The guarantor and co-applicant must have a solvency that allows the installments to be paid if the temporary worker fails. For this reason, the bank carefully examines the two credit safeguards.
An optimal credit situation also results if the agency worker is married and the partner is employed and has an income. Applying for the loan so the chances are good. In general, the agency worker can assume that if he applies for a loan alone and has a temporary employment contract, he will not get a loan without a second borrower or guarantor. How the situation of the credit protection must look like is already described before.
Banks often also provide overdraft facilities to a loan seeker. If a credit line already exists, some banks agree to increase it. A disposition is suitable for short-term claims. If, for example, particularly urgent bills are to be paid and the account is empty. Then the overdraft facility can be helpful without causing major financial damage.
But whoever uses his overdraft facility for a long time, even beyond the credit line, comes with the debit interest and the interest that the bank calculates for overdrafting the credit line to a whopping 18%. No one would accept a loan with these high interest rates. But once you are in financial distress, many people accept a lot and the banks also know that and long over there.
The overdraft facility is an expensive loan that is easy to apply for and easy to use. Available for short-term use only. It should be balanced again after a few months at the latest. Quite a few people have fallen into a debt trap as a result of the overdraft facility.
The car loan and the credit score-free loan
A temporary worker also needs a car to drive to work. Sometimes there is no other connection to the remote construction sites than your own car. Here, the agency worker is advised to contact a car bank.
The requirements for a car loan are not so strict there. The vehicle letter is deposited with the bank as security, which has such security. If a down payment of at least 20% can be made, the car bank also sees this as security.
But what if the agency worker wants a loan for agency workers and there is a bad credit score. Borrowers who have sufficient income despite the poor credit score can get a credit score-free loan from abroad. The foreign banks require a sufficiently high income from a self-employed activity and a permanent job.
However, the agency worker cannot offer this and is also excluded from the credit score-free loans. Unless he applies for the loan with a second borrower who has a permanent job. Then the loan for a temporary worker looks positive again. credit score-free loans can only be obtained if the borrower has a permanent position, and this is unfortunately not the case for temporary workers.
The policy loan
In addition to the above-mentioned persons, other credit safeguards for a loan for a temporary worker can also be recognized. Think of a property or a loanable life insurance policy. Regarding the insurance, it should be mentioned that this insurance can also be loaned.
The loan is called a policy loan and the agency worker can, if the insurance company has a surrender value, to lend it. He pays the value back to the insurance company in small contributions. The bank has the insurance as security and the loan is available. However, the surrender value must already be 5,000 dollars high.
In summary, a loan for agency workers is not easy to obtain. If the necessary security can be provided, the situation is usually positive. If the agency worker then has the required credit rating, a loan is also approved. Especially in view of the fact that there are also temporary workers who work in a temporary agency, but can present an unlimited employment contract. Then a temporary worker, like other borrowers, can get a loan with the appropriate credit rating.