Does a new job bring new perspectives – but also new financial opportunities? At least during the probationary period, it can be a bit difficult with the latter, because still the position and thus the income is not permanently secured. Those who work on a trial basis in a company must first prove their worth and convince their superiors of their abilities. If this has been successfully completed, banks can also be convinced of the newly acquired credit rating. But what if there is an urgent need for money that goes beyond your own budget?
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First of all, credit in the probationary period is not impossible, but big leaps cannot yet be made in this situation. If only small amounts are needed to bridge short-term liquidity bottlenecks, a credit line can help. This allows the current account at the bank in the target, so in minus, lead. For this, a credit line is set, which usually corresponds to two to three times the value of the monthly income. During the probationary period, however, the credit line can also be significantly lower. However, capital so called should be repaid as soon as possible, since interest rates are comparatively high.
Another way to short-term financing is an installment loan at https://www.paydaychampion.com/installment-loans/. Depending on the provider, loan amounts of up to € 1,000 are available here. For some providers, it is sufficient if the applicant has a monthly income of 500 euros, because the amount of the loan also reduces the risk for the bank. In addition, mini loans offer the advantage that the loan amount is made available to the applicant very quickly. Depending on the provider and type of verification, the money can be credited to his account on the same day.
Medium and long term loans during the probationary period
In order for the bank to be able to approve a loan, it must first check the creditworthiness of the applicant. This means reliability and the ability to repay loans on time. In this context is also spoken of the debt servicing capacity. This aims to be able to make monthly repayments and interest payments in order to be able to reduce the remaining debt step by step. This ability depends primarily on the level of income.
Now an employee may earn a reasonable monthly income during his probationary period. However, it is still not certain that he will still receive this after his probationary period because there is no job and income security. If he is not taken over by the company after this time, there is a risk that he will no longer be able to afford the debt service and that he will be in arrears with his repayments. The contract threatens to burst, which can cause serious financial difficulties such as over-indebtedness to the borrower.
Improve opportunities through additional collateral
So, if the bank does not approve a loan for lack of credit, it not only protects itself from a high-risk credit business but also the claimant. The only way to get a medium to long term loan is in additional collateral. If, for example, the claimant owns a property, he can take on this one mortgage. The land or the building serves the bank as security, which it can fall back in the event of non-payment. However, whether the risk is worth it, the borrower should think carefully before.
Another possibility is a guarantee. A guarantor takes over the debt service if the borrower himself is no longer able to do so. The bank has no fears of loss. Guarantors may come from the circle of friends or family, and in turn, must fulfill certain requirements in order to be accepted by the Bank in their capacity. The guarantor, therefore, needs at least a secure income from a permanent job, the amount of which is sufficient to pay off the remaining debt. In the case of a case, the guarantor takes over the debt service until the borrower himself is able to do so. If this is not possible for him, the guarantor must completely repay the loan.