For a large proportion of banks, creditworthiness plays a very important role. Anyone working in a temporary employment relationship faces massive difficulties in car loans for temporary workers.
But even with worse credit conditions, the search for credit is not necessarily hopeless. For this, the applicant must be able to offer the lender additional collateral.
For fast readers – compactly informed
- Despite temporary employment credit, banks only forgive if the repayment is safe
- It would be possible to have the credit balance within the time limit or to be secured by a co-applicant
- Check – here and now – under what conditions your loan is granted
- Simply apply for this – of course without obligation – your desired loan now
Car loan for temporary workers – this is how branch banks behave
Buying a car is usually always a great investment, which many consumers first discuss with the house bank. This bank is usually responsible for all accumulating monetary transactions and manages the accounts of the customer.
Car loan for temporary workers
In many cases very good business relationships exist over many years. Bank customers, who want to apply for a car loan at their house bank, have to make an appointment with their responsible loan officer.
For this appointment, the bank customer should bring along an offer from a car dealer and a valid ID. All other data needed by the clerk to calculate the car loan is available in the computer.
Even if the private credit information is positive and the income sufficient, a car loan for temporary workers represents a high credit risk. Even if the current credit rating would be sufficient, a long-term financing of a car in many cases is not possible.
If the house bank but engage in a financing, additional collateral must be offered.
Improve creditworthiness – these collateral take banks
If the credit rating is too low, banks reject borrowers. This is usually due to increased credit risk.
Since a car loan for temporary workers is a credit risk, these consumers need additional collateral. Banks usually accept various collateral and personal security.
As collateral for banks, fixed savings deposits, high-quality works of art or property values are eligible. When buying a car, the bank can additionally demand the registration certificate II as collateral.
This certificate is deposited with the bank that the borrower can not sell the vehicle. If no collateral exists, the applicant must be able to offer a guarantor or a second borrower.
Guarantors and co-applicants are among the personal security. A co-applicant may be a spouse or a spouse of the spouse.
A guarantor can come from the circle of acquaintances or relatives. Particularly important is the liquidity of the guarantor.
Guarantors and co-applicants are normally liable on their own. Anyone who is liable on their own account can be asked to pay without a judicial dunning procedure.
Financing of auto banks – with temporary employment rather unlikely
Car loans are now also provided by so-called car banks. These banks are either in-house or cooperating financial institutions.
For the car buyers of the different brands, the automotive banks almost always offer two different financing options. These are the classic installment loan and the balloon financing. In the installment loan, the car buyer can make a down payment, which is credited to the required loan amount.
For the loan, monthly installments are calculated, which have the same amount over the entire term. At the last installment, the borrower becomes the owner of the vehicle.
With a balloon financing, a down payment can also be made. Monthly loan installments are relatively low.
At the end of the repayment term, a final installment remains, which can either be redeemed or further funded. The return of the vehicle is possible with many contracts.
A car loan for temporary workers is likely rejected by the auto banks due to the high credit risk.
Apply for car loan on the internet – compare loans at Creditend
Many banks have extended their loan offer to the Internet. There are also numerous online and direct banks offering their loans exclusively on the World Wide Web.
Due to the large number of loan offers, a search for a cheap car loan is often cumbersome and very tedious. Help offer so-called credit portals with their comparison pages. These comparison pages are also provided by Creditend.
The credit portal of Creditend cooperates with many large and small banks. For easy credit search, consumers can use an easy-to-use loan calculator.
The net loan amount and the desired repayment term are entered into this calculator. However, the intended use should be car financing.
Immediately, numerous banks that qualify for a car loan are displayed on the comparison page. Since the online and direct banks attach great importance to a very good credit rating and require a positive private credit, a car loan for temporary workers will not be approved.
Loans from credit marketplaces – auto financing with personal loans
An alternative to banks are credit marketplaces on the Internet. On these internet portals, private financers offer their help to consumers who are looking for a loan.
In the UK and US, credit marketplaces are referred to as peer-to-peer networks. Private loans are also granted to Creditend, which can certainly be used to finance a motor vehicle.
Creditend arranges loans from 1000 to 50,000 euros. With the credit periods up to 144 months, so 12 years can be selected. A second borrower improves the chances of getting a loan.
Since the funding is decided by the private donors of the portal, temporary workers can apply for a loan. Consumers who apply for a car loan for temporary workers, however, must have no hard negative features in their private credit.
These features include, for example, arrest warrants, court orders or affidavits. Even consumers who are in a private bankruptcy, can not apply for credit.
Car loans from credit agencies – additional collateral is needed
Credit agencies offer installment loans to consumers in financially difficult situations. A car loan for temporary workers can therefore be granted.
However, a temporary worker must be able to offer additional loan collateral to credit agencies. The private credit should also have no negative entries.
However, guarantors are accepted in credit agencies such as Maxcredit or Crediter. The guarantor must meet at least the credit requirements for the desired loan with these lenders.
Likewise, a second borrower qualifies as collateral for these financial services providers. If a loan transaction is established, a liability is assumed as with the banks, with a guarantor or a second applicant.
Car loan for temporary workers – increased costs are possible
A car loan for temporary workers is available only from a few financial service providers. If the house bank or a credit agency grants a car loan, additional loan collateral is required.
Online and direct banks as well as auto banks will reject a loan because of the high credit risk. However, consumers who choose to buy a car loan from a credit intermediary or from a credit marketplace face increased costs.