Bank offers loan during trial period.

If an employee has been unemployed for a long time and has finally found a new job, then a trial period must generally be completed. Even people who have finished their training and are starting their careers start with a trial period. However, there will be problems with a loan during the trial period. Banks usually only lend money to customers if there is a permanent contract.

The reason banks see this is that neither the loan seeker nor they themselves know what will happen after the trial period. Does the employee receive a permanent contract, a fixed-term contract or become unemployed again? This scenario is too uncertain for banks and they are very reluctant to take a loan during the trial period.

The overview

The overview

The trial period is an arbitrary thing that comes from the employer. A trial period helps employers and employees get to know each other better. A trial period has been agreed so that both sides have the same opportunities. In this way, the employee and the employer can dissolve this relationship at any time. The trial period lasts about six months in most cases.

Before banks approve a loan, they thoroughly examine the customer’s economic situation. In addition to the income, which must be above the garnishment exemption limit, employment is also checked. If the employee is still working during the trial period, banks require collateral. The risk of default seems too high to them. Proof of creditworthiness is checked using proof of salary, bank statements and a copy of the employment contract.

Impeccable Credit Bureau is just as important as permanent employment and a sufficiently high income, and must not contain any negative entries.

The cautious approach is explained by the fact that the employee becomes unemployed again after his trial period. Income is reduced from one month to the next. Many customers who were in a similar situation could then no longer pay their loan because the money was simply missing. If credit is taken into consideration during the trial period, then the customer must also act with foresight. He can do this, for example, by setting the installments so that they are still payable in the event of unemployment.

The amount of the loan should also be reconsidered. Maybe a small loan amount is enough to pay for the necessary things. In such a case, banks without collateral will not approve the loan during the trial period. Unless the customer can name a property, a loanable loan, a second borrower or a guarantor. Banks often also offer residual debt insurance which pays the installments due when unemployed.

Here, however, the customer should read the conditions of this residual debt insurance very carefully. Because the protection often only takes effect after a certain time or it only takes effect with reservations. This type of insurance is also very expensive. The premiums are added to the loan amount completely, which not only increases the loan amount but also the customer pays interest for the insurance. Anyone who now needs a small loan generally does not actually need any residual debt insurance if he sets the installments in such a way that they can be paid even under difficult conditions.

The reasons for a loan during the trial period can be varied. Most of all, a car is needed to drive to work. If the employee opts for a high-quality car, he could deposit the vehicle letter with the bank. She sees the letter as security and the loan could be approved during the trial period.

Is the overdraft facility an option?

Is the overdraft facility an option?

If the worker has an urgent need for money and the amount is not too high, the overdraft facility could be a solution. If there are no abnormalities in the account movements, the bank will leave the credit line intact. According to how high the income was, there might already be a disposition of up to 6,000 euros or even more. This can be used to pay for or buy something.

However, the overdraft facility is very expensive, it has an interest rate in the double-digit range, there are banks that charge up to 15% of interest. If the customer then exceeds the credit line granted, the bank can calculate an additional 5% interest. The overdraft facility is actually intended for short-term use. If it can be quickly offset, the overdraft facility could be the solution for the loan during the trial period.

If the employee then receives his permanent employment contract, the overdraft facility can be compensated or converted into an installment loan. In any case, this creates a better interest rate.

The guarantee

The guarantee

But what if the overdraft facility is already exhausted and the bank refuses to increase it? The option to get a loan during the trial period is to pay the loan within the trial period. However, high installments then have to be paid, which not every employee can pay. If there is a possibility not to pay the loan during the trial period, a guarantor could be named to serve as credit protection.

The guarantor can come from the family, but must be solvent. This means that if the borrower defaults on the loan, the guarantor is obliged to do so. Therefore, he must have a sufficient income to guarantee that the loan installments can also be paid. Likewise, the Credit Bureau must be impeccable, there must be no negative entries in it.

The bank will require a joint and several guarantee, which equates the guarantor with the debtor. If the customer no longer pays, the guarantor is immediately taken into recourse. The same thing happens with a co-applicant, who, however, is jointly and severally liable from the start.

Credit Bureau free?

Credit Bureau free?

If the Credit Bureau of the loan seeker is bad, however, there are negative entries in it, then a Cream bank will not grant a loan during the trial period. In this case, there are the Credit Bureau-free loans that are heavily advertised on the Internet. However, these banks also require permanent employment, which must have existed for at least one year.

 

Take out a loan without prepayment is possible.

If you are looking for a loan, you do not have to pay in advance. Prepayment is an instrument used by credit intermediaries who do not work seriously. But why do you hire a loan broker? There are loan seekers who have a bad credit rating due to negative entries in their Credit Bureau and were rejected by local banks.

Credit brokers promote the Credit Bureau-free loans, which are often the last lifeline for people with limited credit ratings. However, there are black sheep among the brokers who require payment in advance before the customer has even received a loan application. This is not allowed, a credit agency receives the commission only after the loan approval. But is there a loan without prepayment?

The outlook

The outlook

The credit without prepayment is part of normal banking. People who hire a credit broker because they do not get a credit in this country due to their limited creditworthiness are often ripped off by the broker asking for prepayment before anything is started. If this happens to a loan seeker, he should look for another intermediary. Not all credit intermediation should be done badly, but caution is advised.

The customer, who has already received a number of loan rejections in this country, turns to a credit broker in an emergency. After all, they advertise on the Internet that they can promise a loan to every customer, even without a credit check. The customer only has to pay in advance or sign insurance contracts. Ultimately, the customer has no credit, but an insurance policy that he doesn’t need at all.

However, the situation on the financial market is such that most banks and credit intermediaries issue every loan without prepayment. Before a loan is approved, the bank checks the income, the Credit Bureau and the permanent position. If the customer can meet the conditions of the bank, there is a credit without prepayment. However, there are loan applications that are rejected due to poor creditworthiness if the income is too low or the Credit Bureau is bad. This is where credit brokerage comes in. because their advertising is aimed at these customers in detail.

Often you can find a credit with prepayment for the Credit Bureau-free loans. If the customer pays, they will receive the loan rejection within a few days. But he never sees the advance payment again. However, if he has commissioned a reputable credit broker, he will very well get a loan without prepayment. Serious credit brokers can be recognized by the years of experience with which they do business. ‘Even strong brand-certified agencies and those tested by the German Company can be classified as serious.

Certainly no credit broker works for free, but he will only get his commission after the loan approval.

The Swiss loan with a credit broker?

The Swiss loan with a credit broker?

It is the Swiss loan that always appears in negative light. These loans have been around for decades. But it is the credit intermediaries that have given this credit a bad name. The Cream bank and Lite bank are reputable business partners who of course know nothing about a prepayment. A serious loan from Liechtenstein, for example, is always a loan without prepayment. Although the loans are subject to a higher interest rate, the bank does not use the Credit Bureau query, and the loan is not entered.

There are various ways to apply for a loan from Liechtenstein or Switzerland. The aforementioned credit brokerage and the customer himself can submit a loan application to the bank. These banks have a website and simple platforms that everyone understands. The loan processed by a credit broker without advance payment saves the customer a lot of time and nerves. All he has to do is provide the necessary credit documents, the credit intermediary does everything else. For this he calculates 5% of the loan amount as a commission.

Especially with financially weak people, dubious loan brokers do their business. A loan is promised, but prepayment is required for the loan to be approved, the intermediaries say. But here only the broker does a good business with prepayment.

The credit without prepayment

The credit without prepayment

If you are looking for a loan without prepayment, you are right with your house bank. Other branch banks or direct banks also grant the loans without having to calculate advance payment. If the loan is rejected because a negative Credit Bureau entry is responsible, it does not have to be the end. There are banks that grant a loan even with this limited credit rating. However, caution should be exercised here, because there are also black sheep among these providers. The provider should be carefully selected. Prepayment is no serious work, just like insurance contracts.

The customer can submit the loan application directly to the selected bank, which grants no-Credit Bureau-free loans. With a credit comparison, the customer can see whether these loans are on offer by the provider. However, advertising promises such as Credit Bureau-free loans up to USD 100,000 are simply an exaggerated advertising strategy, but unfortunately many customers still fall for them.

Generally, a loan without advance payment is only approved if there is a sufficiently high income that has a attachable portion of at least 100 USD. Those who earn less will not receive a loan. There must also be a permanent position, which must not be limited and should not have a trial period. Proof of creditworthiness is determined on the basis of payslips, bank statements and a copy of the employment contract.

The customer must be of legal age and must not be older than 62 years. The place of residence and the current account must be in Germany. The peculiarity of this loan are the restricted loan amounts. In most cases, three sums are approved. The $ 3,500 loan is the most approved loan and has a rate of $ 105.00. The other two loan amounts are 5,000 USD and most recently 7,500 USD. The terms of all three loans are 40 months, the interest rate is in the double-digit range. It is recommended to pay the loans on time because the bank will initiate the garnishment immediately in the event of a payment default.

 

Borrowers can still avail loan despite high debts.

 

Large debts are unproblematic if they are matched by appropriate assets and the repayment takes place over a long period of time. They are of concern if the payment of credit installments consumes a large part of the income.

This means that homeowners can safely take out a loan despite high debts a few years after the purchase, while other indebted consumers find it difficult to obtain a loan. Existing liabilities are recognizable for full banks in the Credit Bureau information. In addition, the borrower ensures that he can repay all future installments on time despite the existing debt.

The bank loan for high debts

The bank loan for high debts

Whether the bank grants another loan despite high debts is less based on the absolute amount of the debt than on the monthly loan installments. These must be commensurate with the disposable income for the approval of an additional loan. Since there are no fixed repayment obligations for the overdraft facility, for a call credit and for the credit card account, these types of credit are generally not taken into account when checking the ability to repay.

However, their use for long-term financing is not recommended since financial institutions charge higher interest rates for these forms of credit than for installment loans. If the bank refuses further borrowing due to excessive existing liabilities, the additional loan can still be taken out with another applicant. In the case of couples, it generally makes sense for the previously less burdened partner to apply for the loan if he has sufficient income. A Credit Bureau-free loan is possible in spite of high debts, since the federal bank is not aware of existing liabilities without a Credit Bureau request.

The amounts are limited to 3500 to 5000 USD, and lending also requires a sufficiently high income from work. Unlike many domestic financial institutions, Cream banks do not take child benefit or any additional income into account in their household calculations, but only the regular wages from their main job. Credit brokers often state in advertisements that their customers get a loan despite high debts and even with low income.

Since the service providers represent a large buying power face-to-face banks, they actually often get a loan, even if the borrower would fail with an application submitted directly to the financial institution. The commissioning of a credit intermediary is risk-free if he works seriously and, according to the legal basis of his activity, only asks an appropriate commission. As soon as an intermediary calculates preliminary costs, doubts about its seriousness are appropriate.

Alternatives to bank loans for high debts

Alternatives to bank loans for high debts

An order on an installment payment basis in retail is possible regardless of existing liabilities, since Credit Bureau dealers only report possible negative characteristics, but no existing debts. So that installment payments can continue to be used as a dedicated loan despite high debts in the long term, consumers make sure that all invoice amounts are paid on time at their main source of purchase. Every delayed payment deteriorates the internal creditworthiness and jeopardizes the future approval of partial payments, while renewed Credit Bureau requests from existing customers are unusual.

On a website for private loan brokerage, a loan can be applied for despite high debts if the lenders registered there classify the intended use as worthy of funding. One of the larger brokerage platforms enables borrowers to either submit their application with or without a Credit Bureau request.

Since private lenders reward complete information through an increased willingness to subscribe, honest communication of the existing debt is recommended in most cases. The fact that traditional banks refuse the desired loan despite high debts encourages private lenders to take out loans for social reasons.

Debt restructuring as a special case

Debt restructuring as a special case

Debt restructuring is a special case of a loan despite high debts. This can be combined with a moderate increase in the total loan volume and is primarily used to reduce loan costs. For this purpose, the new lender will replace all existing liabilities, so that the customer will only have to repay one loan. The savings effect of the debt rescheduling loan is based on the fact that the interest on the new loan is lower than the interest cost of the previous loan.

The particularly costly forms of credit such as the overdraft facility and the credit card credit line are included in the debt restructuring. Long-term successful debt restructuring requires that the borrower behaves in a disciplined manner and does not immediately take up existing credit lines. The new lender ensures the use of the loan to repay the loan by paying the loan amount directly to the current credit accounts wherever possible.